Amazon is trying to defend its kingdom from cheap Chinese rivals and it thinks it has a plan

• Temu and Shein have given Amazon a run for their money with ultra-low prices.

• But Amazon may have a plan to defend against them — by opening its own discount section.

• The Seattle-based giant intends to ship a range of unbranded goods directly from China to the US.

You know what they say, “If you can’t beat them, join them.”

This appears to be the crux of Amazon’s new plan to fend off Chinese rivals Temu and Shein.

The Seattle-based e-commerce giant plans to launch a new discount section on its website, The Information reported on Wednesday, citing slides the company showed to Chinese sellers.

Amazon is looking to ship a range of non-branded products directly from China to the U.S. Customers can expect to receive their orders within 9 to 11 days, according to the site.

According to The Information, during a recent closed meeting with Amazon, Chinese sellers learned that the new marketplace will begin accepting products this fall.

The move is widely seen as a response to increased competition from Temu and Shein, which attract customers with ultra-low prices and aggressive marketing campaigns.

“We’re always looking for new ways to work with our retail partners to delight our customers with more choice, lower prices, and more convenience,” an Amazon spokesperson told The Information.

Temu and Shein did not immediately respond to BI’s requests for comment sent outside business hours.

Certainly, acquiring customers through competitive pricing has long been part of Amazon’s strategy.

In 2009, Amazon launched its own private label company, AmazonBasics. The company started by selling electronics such as batteries and power cords at a lower price, then expanded its efforts to other product segments such as pet food and clothing.

This strategy may be even more relevant today, given that American consumers are becoming more cautious about spending.

In April, Amazon’s chief financial officer, Brian Olsavsky, told reporters that the company had noticed that its customers were “buying significantly more consumables and everyday items” that tend to be cheaper.

“U.S. customers are very cautious about their spending,” Olsavsky said. “They’re looking for deals, they’re discounting, they’re looking for products with a lower ASP (average selling price).”

And unlike most companies that can burn through cash trying to wage a price war, Amazon may just have enough strength to survive this bloodbath.

On Wednesday, the company’s market capitalization topped $2 trillion for the first time, joining the ranks of tech giants such as Microsoft and Apple.

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