According to the South China Morning Post, Amazon stated that Temu does not meet the strict requirements of its fair pricing policy and therefore excluded the company from the pricing algorithm. This means that there may be some products sold on Temu that are cheaper than on Amazon. Amazon uses pricing algorithms to check whether the products sold on its platform match the prices sold on other competing platforms, to ensure that sellers on its own platform do not sell products at higher prices than other platforms and affect sales.
Amazon stated that they will not compare prices with products on platforms that may have issues, including counterfeit and inferior products. And Temu is currently facing multiple lawsuits, accused of selling products at much lower prices than the original products, and suspected of selling counterfeit goods. Therefore, Amazon has decided to ignore Temu’s prices and not compete with them. While maintaining price competitiveness, Amazon also ensures the authenticity of products sold on its platform. In recent years, the company has been working hard to crack down on “counterfeits” and has stated that it will strengthen its efforts to report counterfeits to law enforcement agencies, and has taken more measures to track and combat them.
Temu’s total sales have continued to grow in the past few months, causing concerns among Amazon sellers. Among them, the CEO of one manufacturer accused Temu and its sellers of infringing on his copyright and causing damage to his sales. Amazon stated that the company strives to provide consumers with low-priced products, but engaging in price competition with Temu can result in sellers being forced to lower prices to the point of no profit.
Post time: Jun-16-2023