Amazon.Com Inc (NASDAQ:AMZN) is launching a new section on its website dedicated to affordable fashion and lifestyle items, allowing Chinese sellers to ship directly to U.S. consumers.
The store is Amazon’s boldest move yet to counter growing competition from e-commerce platforms PDD Holdings Inc (NASDAQ:PDD) Temu and Shein.
Chinese e-commerce stocks ranging from Alibaba Group Holding (NYSE:BABA) on JD.Com, Inc (NASDAQ:JD) to PDD, trading lower on Thursday.
Also read: Alibaba Cloud’s Livestream Event Draws Millions and Sparks Price War in Cloud Computing
Temu and Shein have strong ties to China and have attracted a growing number of American shoppers with their low prices on clothing, electronics, home goods and more.
Amazon’s upcoming store will offer a variety of unbranded items, many of which cost less than $20.
In the past, Chinese sellers have used Amazon’s Fulfillment by Amazon (FBA) services to send goods to US warehouses before shipping them to customers, CNBC reports.
In 2023, the number of items sold by Chinese sellers on Amazon’s website grew by more than 20% year-on-year.
Price promotions: BABA shares were trading 0.98% lower at $73.44 premarket at last check on Thursday. JD shares are down 1.27% to $27.16 and PDD is down 1.44% to $136.24.
Also read: Alibaba’s 618 Shopping Festival is driving sales with big brands like Apple and Xiaomi leading the charge
Disclaimer: This content was produced in part using AI tools and was reviewed and published by Benzinga editors.
Image by Tada Images via Shutterstock
“SECRET WEAPON OF ACTIVE INVESTORS” Boost your stock market game with the #1 trading tool for “news and everything else”: Benzinga Pro – Click here to start your 14-day trial now!
Want the latest stock analysis from Benzinga?
This article What’s going on with Chinese e-commerce stocks Alibaba, PDD and more on Thursday? originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
