(Reuters) – Amazon.com (NASDAQ:) is imposing extreme worth caps on what retailers can cost for his or her merchandise on a brand new low-cost storefront that the e-commerce big is getting ready to launch, the Info reported on Tuesday.
The corporate’s worth limits embrace $8 for jewellery, $13 for guitars and $20 for sofas, based on the report, which cited messages from Amazon to retailers. The messages included an inventory of 700 objects, it mentioned.
Amazon plans to ship orders to U.S. clients straight from a facility in Guangdong, China, the report mentioned, including that it was charging sellers decrease achievement charges for objects offered via the brand new storefront.
Amazon didn’t instantly reply to a Reuters request for remark.
The corporate has been working to roll out a low-price storefront web site, based on media experiences earlier this 12 months, because it rushes to deal with competitors from low cost websites akin to Temu and Shein, which have exploded in reputation attributable to their rock-bottom costs.
The value caps, if put in place, would symbolize a shift in technique for Amazon, which has traditionally not set strict limits for sellers on its platform.
This comes at a time when the corporate is seeing indicators of weak spot in retail gross sales. Its on-line shops gross sales rose simply 5% within the second quarter, slowing from a 7% enhance within the first quarter.
