Amazon has intensified its competition with Temu by urging Chinese sellers not to list products at lower prices on the rival platform. This move reflects the growing rivalry between the two e-commerce giants as they vie for dominance in global online marketplaces.
Pricing Under Scrutiny
According to reports from merchants, Amazon’s local office in China has reached out to top-selling Chinese brands, asking them to maintain consistent pricing across platforms. The focus appears to be on preventing Temu from gaining a competitive edge through lower prices on identical products.
Amazon has also begun actively tracking product pricing on Temu. Sellers whose products were found to be more expensive on Amazon reportedly faced penalties, including removal from the highly coveted Amazon Featured Offer program, commonly referred to as the “Buy Box.”
Importance of the Featured Offer
The Featured Offer plays a critical role in driving sales on Amazon. It is prominently displayed at the top of a product page alongside “Add to Cart” and “Buy Now” buttons, making it easier for customers to choose the highlighted item over similar listings. Losing access to the Featured Offer can significantly impact a seller’s visibility and sales, creating a strong incentive for compliance with Amazon’s pricing policies.
Seller Concerns
Many Chinese sellers are caught in a challenging position. Temu, a rising platform with competitive pricing strategies, offers an attractive alternative to Amazon’s extensive rules and fees. However, Amazon’s dominance and access to Western markets make it a critical platform for sellers aiming to reach a broader audience.
Merchants have expressed concerns about these developments. One furniture seller operating on both platforms, who chose to remain anonymous, stated that sellers risk losing significant business on Amazon if they do not adhere to the pricing demands.
Broader Implications
This development underscores the intensifying competition between Amazon and Temu, particularly in the cross-border e-commerce sector. Temu’s aggressive pricing and growing popularity among consumers are challenging Amazon’s market share, prompting the US retailer to take protective measures.
As global marketplaces evolve, sellers must navigate increasingly complex dynamics between competing platforms. At DMSMatrix, we understand these challenges and are here to support merchants in optimizing their strategies across multiple marketplaces. Whether you’re selling on Amazon, Temu, or both, we provide tools and expertise to help you succeed in this competitive landscape.