Amazon’s Entry into Ultra-Fast Fashion Will Cause a Seismic Shift in E-Commerce

Amazon is set to make a significant impact on the ultra-fast fashion market, a sector currently dominated by Chinese giants SHEIN and Temu. The move marks Amazon’s entry into a fast-growing segment of the market known for its ultra-low prices and direct-from-China shipping model.

SHEIN and Temu reportedly ship up to 1 million packages a day to the U.S., underscoring Amazon’s significant absence from that lucrative market. Now, the Seattle-based giant plans to leverage its vast infrastructure and customer base to compete in this highly price-sensitive arena.

Industry analysts emphasize that price remains a key driver of consumer behavior, often outweighing concerns about sustainability or customer service. Amazon’s renowned delivery capabilities could take a back seat as shoppers show a willingness to accept longer delivery times at much lower prices.

Jianlong Hu, CEO of Brands Factory, says Amazon’s new discount marketplace will focus on products priced under $20 in the fashion, home and lifestyle categories. The model closely mirrors that of SHEIN and Temu, in which Amazon handles shipping from Chinese warehouses directly to U.S. customers and takes a commission on sales.

The change marks a shift away from Amazon’s traditional support for small businesses and entrepreneurs, and instead adopts SHEIN’s data-driven, rapid manufacturing model that enables a design to go from sketch to online offering in less than two weeks.

Despite the potential regulatory challenges, Amazon stands to gain significantly from this venture, leveraging its base of more than 200 million American customers. Recent data from Omnisend shows that 57 percent of American consumers have made a purchase on Temu in the past year, suggesting that Amazon is well-positioned to capture a significant share of this growing market. Amazon also enjoys a higher trust rating than either SHEIN or Temu.