Update on Amazon's New Discount Section Shipped from China
We’ve got a little update on the topic we covered back in July. For those who missed it, Amazon is rolling out a new storefront featuring unbranded fashion, beauty, and home products under $20, shipped straight from China. Delivery takes about 9-11 days. This move seems to be Amazon’s way of competing with low-cost rivals like Temu and SHEIN, targeting shoppers who care more about savings than speedy shipping. As usual, Amazon is testing this in the US first.
According to the latest reports, Amazon is working with merchants to ship products from a facility in Guangdong, China, and sellers are getting reduced fees for fulfilling orders through this new storefront.
Some of the key points from the latest seller documents about this new "Discounted Merchandise" section (or "Amazon Low-Cost Store" as they’re calling it) are:
It’s invite-only for sellers who meet certain criteria.
Amazon will handle all fulfillment from their center in Dongguan, China—no seller fulfillment allowed.
Not clear yet if only Chinese sellers can join or if U.S. sellers who manufacture in China can hop on board.
All products have to be listed under the brand “Generic.”
These items won’t show up in the regular Amazon search and will only be available through a separate storefront in the Amazon app.
Products must weigh less than 1 lb and stay within 14 x 8 x 5 inches.
No batteries, food, skincare, or anything that requires special cross-border documentation (like baby or pet products) allowed.
There are max price points for different items. For example, $14 for shorts, $12 for hair trimmers, $10 for necklaces, and $8 for calculators. Anything over the limit will get deactivated.
Listings have to be made via spreadsheet upload—no manual edits allowed through the usual listing tools.
Fulfillment fees are pretty low, starting at $0.50 for smaller items under 4 oz.
The return window is just 15 days, and anything under $3 isn’t eligible for returns. Returned items will either be liquidated, donated, or disposed of.
Right now, this program is in beta for a select group of sellers. We’ll be keeping an eye on when it officially launches and what kind of impact it has, especially with competitors like Temu and SHEIN in the mix.
