Amazon attacks: Discount platform as competition for Temu & Shein

Opportunity for sellers: Amazon now shows seller ratings in search results

• Amazon is testing a new feature that displays seller reviews directly in product search results to better support customers in their purchasing decisions.

• This could influence purchasing decisions in a similar way to how product reviews already do.

• Amazon’s star ratings are based on a machine-learning model that takes into account various factors such as recency and verified purchases. However, it is unclear whether the same algorithms are also used for seller ratings.

Amazon plans discount platform – competition for Temu and Shein

Amazon is planning to launch a new platform for affordable fashion and lifestyle products that will be delivered directly from Chinese retailers to US customers.

• Direct shipping from China: By shipping directly from the manufacturer to the customer, delivery times are to be reduced to nine to eleven days, which both saves costs and facilitates the market launch of new products.

• Competitive advantage: With this strategy, Amazon is responding to the growing success of platforms such as Temu and Shein, which are gaining market share through low prices and fast deliveries.

More Amazon-News:

• Amazon UK tightens return policy

• Amazon expands same-day delivery to 80 UK towns and cities

• Amazon abandons bubble wrap

Forecast: Growth rates of Shein and Temu to decline sharply by 2025

According to recent reports, the previously rapid growth rates of the online marketplaces Shein and Temu are expected to decline significantly in 2025.

• Reasons for the decline: Criticism of product quality, unethical production methods and unfair shipping advantages have led to increased attention from environmental groups and governments.

• Internal challenges: Shein has not yet had a successful IPO, while Temu is struggling with high customer acquisition costs, which is further slowing growth.

More E-Commerce-News:

• TikTok Shop goes all in on live streaming to boost sales over the Christmas period

• Sinch releases 2024 Black Friday and Cyber Monday predictions

In the latest episode of ‘The Debrief’ podcast from The Business of Fashion, we discuss how artificial intelligence (AI) is revolutionizing online shopping. For example through:

• Improved product search: AI enables more accurate search results and personalized product recommendations that are better tailored to individual customer needs.

• Understanding customer intentions: By analyzing user behavior, AI can better interpret shoppers’ intentions and thus optimize the shopping experience.

More News on AI:

• AI agents are changing online shopping: Project Jarvis unveiled

• Zalando is testing next version of virtual fitting room