Earlier this month, Amazon debuted a new grocery brand called “Amazon Saver.” True to its brand name, most items are priced under $5 to help shoppers extend their grocery budget.
But beyond being a smart way to capture inflation-weary shoppers, could this be Amazon’s first move toward the low-cost product market to confront its Chinese rivals? Well, we can’t really blame Amazon since its competition has some good cards to earn a big advantage.
HOT TOPIC
Did you know Shein and Temu are among the most downloaded apps in 2023? And nope, it’s not just because of their low-priced items or fast-moving goods.
🤺 According to a recent article from VentureBeat, the China-born marketplaces use a 3-point tactic to compete with the U.S.-based retail titans.
1. The “Super App” concept
China is known for its super apps that combine multiple services. Just look at WeChat—a messaging app, a mobile payment app, a social app, and a gaming app ALL AT ONCE!
2. Influencer economy
Influencers are called “key opinion leaders” (KOLs) in the Chinese ecommerce industry. They focus on selling, especially live selling, and have online stores within super apps where their income doesn’t depend on likes and shares. 📳
3. Product accessibility
China has a huge advantage in being a global production hub, having both manufacturers and suppliers at sellers’ doorsteps. On the other hand, the U.S. relies on imported goods, so getting the same product out takes longer and costs more.
🤫 Amazon’s secret strategy
Just like a good ‘businessman,’ Amazon takes notes from China’s ecommerce success. The platform isn’t a super app, but it has been forging meaningful partnerships with other tech companies. For example, Facebook users can buy from Amazon without leaving the social app.
But do you think it’s a great idea for U.S. retailers to adopt more of China’s tactics? Let us know your thoughts by replying to this email! ✉️
TOGETHER WITH WALMART MARKETPLACE
Do you sell in the Trading Cards, Sports Memorabilia, Toys, Comic Books & Books, Media & Music, and/or Coins categories? Then, you could be a great fit for our Collectibles Experience!
Through our limited-time referral fee offer, sellers specializing in collectors’ items will have the chance to enjoy 0% referral fees until October 31, 2024, plus additional perks!
Additional perks for sellers in the Collectibles Experience include:
Learn more and sign up to sell on Walmart Marketplace today.
BITES OF THE WEEK
AMAZON NEWS
Amazon sellers are gearing up for the October "Prime Big Deal Days," but many are skeptical about its impact on holiday sales.
🛍️ According to Modern Retail, the October Prime event may not make waves for sellers due to:
🎯 So, how do you prime your business for success?
You may not expect massive sales, but here are some smart strategies to make the most of this event:
Amazon’s fall Prime Day sale might not bring in the big bucks like its summer counterpart, but it’s still a valuable opportunity to earn more. Our tip? Use this event as a stepping stone toward Black Friday and beyond. 🪨