Amazon Expands China Seller Network to Compete with Temu and Shein in Global Markets

Amazon is expanding its network of Chinese sellers to increase its selection of affordable products in the U.S. and around the world, as it looks to compete with companies like Temu and Shein. The company recently held an event in Shenzhen, reinforcing its commitment to helping Chinese sellers expand into international markets.

Amazon is expanding its retail network in China to expand its global product selection and challenge rivals like Temu

Amazon is acquiring more retailers in China to expand its low-cost product offerings in the U.S. and elsewhere and to compete with Temu and other Chinese companies.

As a testament to its unwavering commitment, Amazon held an event in Shenzhen, Guangdong Province in late July. During the event, the company announced its commitment to helping online sellers go global, reinforcing its role as a reliable partner in the e-commerce industry.

Amazon cited Anker, a maker of chargers for smartphones and other devices, and Roborock, a maker of autonomous vacuum cleaners, as examples of earlier successes in China. Both companies have expanded globally.

In China, Amazon has been reducing the size of its consumer-facing businesses. In 2019, the organization discontinued domestic e-commerce services in China and recently discontinued Kindle e-book services. It continues to offer cross-border e-commerce services for overseas products to Chinese consumers; however, its presence is limited.

In a strategic move, Amazon recently began reassessing China as a source of products for export. According to Nikkei Asia, this reassessment, combined with the company’s focus on supporting the development of sellers in the country, signals a promising future for Amazon’s global market expansion.

Amazon opens new offices in China to support local sellers and expand global reach

This year, new offices have been set up in the inland communities of Wuhan, Hubei Province, and Zhengzhou, Henan Province. They support vendors in neighboring cities and surrounding areas, and aim to establish new business relationships with small and medium-sized vendors, including factories in rural areas.

These offices can assist companies that need more experience exporting internationally or developing their brand by leveraging Amazon’s logistics network and other resources to sell their products worldwide.

Amazon’s official WeChat social media account is also actively recruiting vendors, hosting daily live webinars for those considering listing their products. An Amazon China vice president told Chinese media in May that the company would hold multiple events for thousands of vendors in 2024.

The company will also develop a framework to facilitate the delivery of Chinese products to the United States at discounted prices. Some U.S. media reported that it has been signing new contracts with Chinese retailers since this summer that allow it to ship inexpensive everyday items and clothing directly to American consumers.

Amazon CEO highlights rise of cheap Chinese exports amid global e-commerce boom

Amazon CEO Andy Jassy acknowledged during an Aug. 8 earnings press conference that consumers continue to look for low-priced products.

China is becoming a growing supplier of low-cost products, which benefits Chinese retailers who can boost sales through exports despite weak domestic demand.

According to China’s General Administration of Customs, cross-border e-commerce exports in 2023 totaled $261.7 billion, up 180% from 2018. The United States was the top destination, accounting for 37% of the total.

Chinese internet giants such as Temu, Alibaba Group’s AliExpress and ByteDance’s TikTok are strategically leveraging their extensive networks of business partners in China to fuel their expansion into the cross-border e-commerce market, thereby increasing the value of their exports.

Amazon is one of many foreign companies looking to expand its offerings in China. To attract Chinese sellers interested in expanding into Southeast Asian markets, Shopee, a Singapore-based company founded by Sea, also broadcasts webinars on WeChat, a move that plays into the company’s market advantage.