Reports say Amazon’s top executives are more concerned about China-based competitors Temu and Shein than about the Seattle-based web giant’s decades-long battles with Walmart and Target. It is said that there is.
Temu and Shein, fast-growing e-tailers offering cheap goods shipped directly from China, have made significant inroads into the United States in less than two years, and there are already signs that they are making inroads into Amazon’s business. The Wall Street Journal reported.
Temu has grown from its September 2022 launch to 51.4 million users in January, while Shein’s users have grown from 20.9 million to 26 million over the same period, according to the report citing Sensor Tower data. It is said that the number of people has increased.
Meanwhile, Amazon’s user count fell to 67 million from 69.6 million during the same period, according to the report.
Amazon disputed the decline but did not provide data to refute the report.
In response, Amazon is rolling out promotions touting its reliability and quick delivery to counter the six to 20 days it takes for packages to arrive from China, the report said.
“While Amazon is careful about our competitors, we are obsessed with our customers,” the Seattle-based company said in a statement.
“Amazon delivers much faster and with a larger selection than other retailers. It was delivered By 2023, Prime members will be able to reach Prime members around the world at the fastest speed ever, with more than 4 billion items arriving on the same or next day in the U.S. alone. ”
Temu’s parent company, PDD Holdings, became Meta’s top advertiser, spending nearly $2 billion on Google ads, according to a previous Journal report. report. The company also ran a “Shop Like a Billionaire” campaign during the Super Bowl, spending $21 million on three 30-second ads.
However, the emerging e-tailer faces significant challenges, including thousands of customer complaints. Temu defends itself against two lawsuits alleging that its apps “install dangerous malware and spyware” on users’ phones and collect customers’ personal information, including biometric data, according to court documents. are doing.
Mr. Temu denies the charges.
The Better Business Bureau has also received an eye-watering 1,900 complaints from customers who claim their packages never arrived or complain about things like product quality.
A BBB International spokesperson told the Post that Mr. Tem has been working with the organization since the summer to address these complaints.
According to a June 2023 report from the U.S. Congress, Mr. Shein and Mr. Tem together send about 600,000 packages to the United States every day.
Lawmakers are investigating allegations that the site is using forced labor to enforce the order.
