“Marketing in the News”, Amazon’s New Focus: Fending Off Rivals Temu and Shein.

Amazon more worried about Temu, Shein than Walmart, Target: report

The article I chose talks about online companies, such as Amazon, Temu, and Shein; which seek to maintain their competitiveness, and others seek how to improve it. I found this article interesting since Amazon considers newer platforms to be major threats to its dominance of online shopping.


Some important points are the following:

  • Amazon is focusing in part on two aspects of their business that they believe will continue to give them a competitive advantage: Customer Trust and Fast Delivery.
  • Temu and Shein, for now, have supplanted Walmart and Target as focal points. Companies with Chinese roots are expanding in the United States and targeting Amazon customers.
  • Temu users in the US grew to 51.4 million in January since its launch in September 2022. Shein users increased from 20.9 million to 26 million during the same period. Amazon's fell from 69.6 million to 67 million.


Online sales companies such as Amazon, Shein, and Temu are looking for strategies to improve their sales, which means that it will be a competition to not lose their customers. Amazon spent much of last year revamping its delivery services to get even closer to customers and deliver products more efficiently because customer trust in fast, reliable shipping and easy returns has long been a staple of Amazon's strategy.


In the case of Temu and Shein, it is more complicated because the matrix is located in China and they do not have enough inventory in the US, but it offers low prices. Temu focuses on working with small and medium-sized manufacturers, while Shein is especially recognized for its on-demand manufacturing model, which helps control the amount of waste in the packaging and other materials it uses.


A great challenge that Amazon has is the rivals Temu and Shein, because all three are online companies, and all three seek to obtain a large number of consumers. It will be difficult for Amazon to compete with these companies because if consumers look for bargain prices, Amazon could lose customers.

Therefore, Amazon is working to improve shipping to its customers, and an example is that in 2023 more than four billion items arrived the same day or the next to the United States.

Competition from Temu and Shein have gained significant ground in the United States, because last year, social media powerhouse TikTok also began targeting shoppers looking for cheap deals.


The focus in particular for these companies is the trust of customers in the products and delivery service they offer, personally, Amazon is better, but in case of inflation most seek to obtain the same product for a better price. 

In my case, I use Amazon because it is faster and if I have problems with the product it is easy to solve it, but my sister uses Shein because it takes a little longer but she gets more products for the same amount and the application offers you to earn points for more discounts, so it's a temptation for me to stick with Amazon or try something different.

Amazon has strong competition, it has to find a way to keep its consumers and create strategies to motivate them to continue with its services. If I were the manager of Amazon, one of my proposals would be: Depending on the quantity the customer consumes, it will be their discount on products and with free shipping, so if you consume a large quantity you will have the opportunity to earn a discount of up to 80 % on some products, but Amazon has to talk to the companies it works with, how much they would be willing to discount to make the offer more tempting for consumers.


In this article, I learned that it is very important to manage the market you are in to create different types of strategies, for different situations and always look for a way to win regardless of the risks because if: "YOU DON'T RISK, YOU DON'T WIN".


Source

https://www.wsj.com/business/retail/amazons-new-focus-fending-off-rivals-temu-and-shein-5c6ac205?mod=business_more_article_pos234

https://www.amazon.com

https://www.wsj.com/video/series/wsj-explains/temu-nearly-unheard-of-a-year-ago-is-redefining-e-commerce-in-the-us/790E39AC-3A30-4201-96C5-F544BD463FCB




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