Low-price mall goes online, has Amazon successfully “stolen the home”?

Low-price mall goes online, has Amazon successfully “stolen the home”?

He is anxious! Amazon's low-price mall is online

If you can't beat them, join them! Amazon's low-price mall is online

Amazon’s low-price mall has quietly launched online.

In June this year , Amazon held a closed-door meeting and announced that it would open a "low-price mall"; in October, a seller said that the goods had been sent to the Dongguan warehouse; now it is mid-November, and Amazon's low-price mall has been launched on the mobile terminal, and it has successfully unveiled the "mystery" of Amazon's low-price mall.

Amazon's low-price mall is online, with ridiculously low prices

Recently, a seller revealed that Amazon's low-price mall has quietly launched, and its official name is Amazon haul. In the Amazon mobile search bar, enter "haul" to open Amazon's low-price mall.

However, when searching for low-price malls on the PC , there is currently no corresponding shopping page . The traffic is only directed to the mobile terminal through the words "Unbelievable finds $20 and under, worth the wait" .

It is understood that the products of the low-price mall cover 15 categories including women's, men's, jewelry, home, beauty, electronics, office, skirts, accessories, handicrafts, sportswear, shirts, kitchen, etc. This is relatively consistent with the three categories of fashion goods, household goods and daily necessities previously revealed.

From the mobile page, the low-price mall page design is relatively simple, with pictures and low-price words attracting attention. However, the product details are different from the main Amazon site, abandoning the original five-point description and A+ content, and only displaying pictures, titles, prices, materials and other information.

It is not difficult to see that Amazon's low-price mall focuses more on price advantages and product functions rather than brand and other information.

The most striking point is that the low-price mall has really put a lot of effort into defending its prices. The homepage is full of words such as "low prices", "crazy low", "Save", "Free", and "saving pro" to emphasize the low prices of the products. The prices of some products are even lower than Temu.

It is understood that these products strictly adhere to the previously set maximum selling price, and most of them are priced below $20, with most of them priced below $7 or $5. On the homepage, you can see $2.99 ​​mobile phone cases, $0.99 rings, $3.99 underwear, $5.99 skirts, $20 sofas, etc.

Amazon claims on its homepage that "save 5% on purchases of $50 and 10% on purchases of $75", and offers free shipping for $25. Although it is not as good as the discounts offered by Temu and other platforms when they first launched, it is still quite good compared to the discounts offered by the main site.

To improve the shopping experience of consumers, the low-price mall has also set up sections such as new product recommendations, holiday supplies, and gifts. At the same time, many products are labeled "Best seller" and "Selling fast", and the two labels will be rotated back and forth under the products. Obviously, these labels will greatly help the number of orders.

Since the domestic direct delivery model is adopted, sellers only need to deliver the products to Amazon's operating distribution center in Dongguan. There is no limit on storage capacity and no overage inventory fees are charged, which saves sellers a lot of logistics costs, which is estimated to be 45%.

For example, if you ship a 7-ounce small non-apparel product, the delivery fee for low-price mall sellers is only $1.77, while if you use standard FBA, the fee is $3.49.

It is not difficult to see that Amazon is also trying to attract sellers to stock up and move forward with lower logistics costs and more flexible gameplay. But it is undeniable that this move will also have an impact on FBA sellers and competing platforms, and may even poach many Temu sellers.

As for the launch of the low-price mall, many sellers believe that it will have a huge impact on FBA sellers in low-price categories . "From the buyer's perspective, it's a few days later, but it can save a lot of money, so people will naturally choose to shop here," a seller revealed.

Product prices are getting lower and lower, and buyers will choose to shop here to save money. Products with low average order values ​​will become more and more popular, and advertising will increase day by day, which will have a fatal blow to small individual sellers and white-label sellers.

Entering the sinking market? Amazon's low-price mall may exacerbate internal competition

In the short term, Amazon has achieved little success in gaining market share in lower-tier cities, but in the long term, if Amazon intends to expand, or even take advantage of the trend of consumption downgrade abroad to aggressively attack the low-price market, it will definitely have a certain impact on platforms such as Temu.

More sellers are also worried: "There are too many things in the low-price mall that cost 1-2 US dollars, which is even lower than Temu. It is completely a low-price involution, which has a huge impact on the industry." Other platforms are very likely to continue to lower prices to compete for the market, exacerbating involution.

Especially Temu, the page design style is similar, the price is similar or even lower than Temu in some cases, the main categories are similar, and Amazon is responsible for fulfillment and overlaps with Temu's full hosting business, so many sellers say "Amazon has stolen Temu's home"?

In fact, although both Amazon and Temu rely on low prices as their killer features, there are still differences between them.

Although Amazon sets the maximum selling price of the goods, sellers still have autonomy and can set their own prices. Temu is criticized for not having the right to set its own prices and needs to be reviewed by the platform. In terms of traffic acquisition, Amazon's low-price mall shares the backend with Amazon's main site. Its product ranking does not rely on low prices like Temu, but is based on multiple factors such as price, weight, customer reviews and even sales volume.

In terms of returns, Amazon claims that products priced below $3 are not eligible for returns, and products priced above $3 are subject to a default policy of refund without return; Temu, on the other hand, sticks to one sentence: it only supports refund services.

Since then, Amazon has gradually transitioned from initially forcing sellers to lower prices through policies to making low-priced products, entering the sinking market, and officially competing with competing platforms.

At present, Amazon's low-price mall is still online and in testing. There is no corresponding publicity, and only some sellers are invited. The possibility of a large number of sellers going online in the future cannot be ruled out.

According to some sellers who have opened low-price malls, there are still many areas that need to be improved. One seller admitted: "At present, the system has many bugs, and it will randomly grab uploaded pictures as the main picture, and some even grab the size picture as the main picture."

On the one hand, it gives sellers pricing power, and on the other hand, it manages logistics. We still don’t know how much success Amazon has in stealing the “low-price market”, how much impact it will have, and whether it can truly carry out the two-pronged approach of the main site and the low-price mall.

How far Amazon's low-price mall can go in the future remains to be seen.

Amazon

Low Price Mall

Temu