Once arrogant and didn't take TEMU seriously, $Amazon(AMZN.US) has now joined the "low-price competition war." It plans to launch a new section on its website dedicated to offering low-priced fashion and daily necessities.

Although Amazon initially adopted a strategy of basically "ignoring" TEMU—excluding it from price comparison references—the newly rumored shopping section model is actually very similar to Temu, or more precisely, to AliExpress's semi-hosted model:

1) Amazon handles logistics fulfillment (delivery time: 9-11 days), product sales, and marketing rights;

2) Merchants have the rights to product selection, pricing, and event participation;

Amazon's merchant recruitment test is limited to fashion, home, and lifestyle categories, focusing on lightweight and small SKUs.

From a product planning perspective, since merchants have some pricing power, this preferred low-price product section might still be slightly more expensive than Temu. But after all, facing potential competitors, Amazon has started to take action, which could be seen as a positive development.