Amazon says sellers don’t need to compare prices with Temu

People who have used Amazon generally know that the Amazon platform has a pricing algorithm system that automatically compares product prices on the platform with prices of similar products on other platforms to ensure that the pricing of products on its own platform is not too outrageous.

However, Amazon recently announced that it would remove Temu from its pricing algorithm because it did not meet Amazon's "standards." But in the eyes of most people, this is because Temu's prices are too low and Amazon does not want to get involved in a price war with it.

According to Amazon, the e-commerce platform Temu does not meet the strict eligibility requirements of Amazon's fair pricing policy, which means that some products are indeed cheaper on Temu than on Amazon.

The US e-commerce giant believes that its qualification requirements can ensure that it does not have to compare prices with "suspicious" platforms. After all, it is difficult to guarantee whether the products on such platforms are genuine.

Temu ads can be seen everywhere on social media platforms , and the most eye-catching thing is the super low prices, with products such as $5 dresses and $2 makeup brush sets.

Some industry insiders speculate that Amazon’s decision not to compete on price with Temu reflects the dilemma Amazon currently faces: it must maintain its own price competitiveness while ensuring the quality of its platform products.

To be sure, Amazon has been battling a problem with counterfeit goods on its platform over the past few years. The e-commerce giant has said it has stepped up its reporting of fakes to law enforcement and has taken a number of steps to track and combat the sale of counterfeit goods.

According to the Marketplace Fair Pricing Policy on Amazon's website , if the platform finds that a seller's discount has undermined customer trust, Amazon can delete the discount, suspend shipping options, or even terminate the seller's sales rights.

Amazon says it works every day to offer low prices to customers, but if it were to compare prices to Temu, it could result in a large number of sellers being penalized and forced to drop prices to unprofitable levels.

A domestic Amazon seller said in an interview that he found the same products as his on Temu for less than $5. When he saw these products, he was worried that he would be punished because of Amazon's fair pricing policy.

The seller sued Temu in May, alleging in the U.S. District Court for the Northern District of Illinois that Temu and its suppliers had infringed his copyright and damaged his sales.

Neither Temu nor his US lawyers have commented on the news .

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