Amazon Expands Low-Cost E-Commerce Service to 14 New Markets
Amazon has announced the expansion of its low-cost e-commerce service, Amazon Bazaar, to 14 additional markets, including Nigeria. The move aims to increase competition with Chinese rivals such as Shein and Temu in the global market for ultra-cheap goods. Amazon Bazaar, also known as Haul in the US, offers a range of products, including home goods and fashion items, at prices as low as $2.
The expansion is part of Amazon’s international growth strategy, with the company seeking to tap into the growing demand for affordable products. The service has already been launched in Mexico, Saudi Arabia, and the United Arab Emirates, and will now be available in markets such as Hong Kong, the Philippines, and Taiwan. According to Amazon, the majority of products on the platform will be priced under $10.
The move is seen as a significant step in Amazon’s efforts to expand its global reach and compete with other e-commerce companies. Analysts believe that Amazon’s ability to offer low-cost products while maintaining a high level of service will be key to its success in these new markets. “Amazon Bazaar’s expansion is an important step in Amazon’s international expansion,” said D.A. Davidson & Co. analyst Gil Luria. “Amazon has only entered a market when it believed it can scale up to a level where it delights consumers and builds a profitable business.”
Amazon’s international revenue has been growing steadily, with the company reporting $40.9 billion in revenue in the third quarter, up 10% from the same period last year. The company’s ability to expand its low-cost e-commerce service to new markets is expected to further drive growth and increase competition in the global e-commerce market.
Shein and Temu, Amazon’s main competitors in the low-cost e-commerce space, have also been expanding their operations globally. Shein operates in over 160 countries, while Temu ships to at least 70 countries. Amazon’s expansion of its low-cost e-commerce service is expected to increase competition in these markets and provide consumers with more options for affordable products.
The launch of Amazon Bazaar in new markets is a significant development in the global e-commerce landscape. As the demand for affordable products continues to grow, companies like Amazon, Shein, and Temu are well-positioned to capitalize on this trend. With its strong logistics and fulfillment capabilities, Amazon is expected to be a major player in the low-cost e-commerce market, and its expansion into new markets is likely to have a significant impact on the industry.