Amazon asks Chinese sellers not to offer cheaper prices on Temu

As competition heats up, the US retailer has started tracking product pricing on rival platform Temu, according to merchants

Reading Time:3 minutes

Some Chinese merchants say they have been asked by Amazon to stop offering products at a cheaper price on Temu. Photo: EPA-EFE

Coco Fengin Guangdong,Xinmei Shenin Hong KongandWency Chenin Shanghai

Published: 6:00pm, 24 Dec 2024

Amazon.com has asked some Chinese cross-border merchants to stop offering goods at a cheaper price on rival platform Temu, according to several sellers, amid intensifying competition from the aggressive budget retailer owned by mainland e-commerce giant PDD Holdings.

The local office of US-based Amazon recently informed the managers of some top-selling Chinese brands that they should not list identical items at a lower price on Temu, merchants said.

It comes after the US retailer started tracking product pricing on Temu. Sellers whose Amazon listings were found to be more expensive were kicked out of the Amazon Featured Offer programme, according to a merchant who sells furniture on both platforms and declined to be identified for fear of reprisal.

A Featured Offer, also known as the Buy Box, is prominently displayed at the top of an Amazon product page, alongside the “Add to Cart” and “Buy Now” buttons, making it easier for customers to purchase the featured item rather than the same product sold by other merchants.

The Temu site features low-priced items shipped directly from China. Photo: AP Photo

To be eligible for the programme, sellers need to set a “competitive” price for their item, “meaning it’s less than or equal to the lowest price from major retailers outside Amazon”, according to the company.