Temu, a recent rival of Amazon, will not be included in the price comparison algorithm that determines if the products offered on its network are competitive against rivals since Temu does not adhere to Amazon's requirements.
Temu, an online storefront that went live in September, allegedly fails to adhere to Amazon's stringent qualifications for its fair pricing policy. As a result, some cheap general products sold on Temu, a website controlled by PDD Holdings, may offer pricing lower than those of Amazon marketplace vendors.
To make sure that sellers on Amazon's marketplace aren't charging much more than their competitors, the price algorithm, which uses automatic and manual tracking methods, examines products located on and off Amazon.
Amazon is hesitant to engage in a price battle with rivals it does not regard as reliable. The business claimed that because of its qualification requirements, it is unable to compare or match prices with goods it considers to be from dubious marketplaces, including potentially counterfeit goods.
The majority of the goods offered on Temu come from suppliers and sellers in China. With the intention of competing with Amazon, Temu has promoted its low costs for electronics, clothing, and household items imported from China, which includes $5 gowns and $2 cosmetic brush sets.
Temu and its American-based attorney at Mandell Menkes did not respond to several mails requesting comment. The business claims that it follows a strict policy prohibiting the listing and sale of goods that breach a third party's trademark, copyright or patent rights on its website.
According to the statement, Temu is not actively engaged in the listing and sale of sellers' items, as vendors are in charge of obtaining the required permits for their shops.
Amazon's decision to neglect Temu's pricing rather than match them serves as a reminder of the challenge it has in maintaining competitive prices while guaranteeing that the products sold on its marketplace are genuine and safe.
Yes, Amazon has faced its own counterfeit issue in the past. The shop claims that in addition to other steps to find and stop counterfeits, it has stepped up reporting of fakes to the law enforcement.
According to YipitData, Temu's overall worth of goods sold, climbed from $141.5 million in January to $634.8 million in May.
If an Amazon seller doesn't offer goods at competitive pricing, Amazon may remove the Buy Box, a button that makes it simple for customers to buy products, until the seller matches the prices of its rivals.
Amazon suspends or removes repeat offenders whose goods are thought to be expensive from its marketplace.
According to Amazon's Marketplace Fair Pricing Policy section on its website, if they notice pricing practices on a store offer which harm customer trust, they might disable the Featured Offer, disable the offer, suspend the shipping option, or in serious or recurrent cases terminate or suspend selling privileges.
According to Amazon, it works arduously every day to offer inexpensive costs to customers. However, if the business compared pricing to those on Temu, it might penalize certain vendors or make them cut their prices to untenable levels.
CEO of MaiBo Technology Company in China, Feixiang Wang said that he discovered purported duplicates of his company's $25.99 fitness equipment on Temu for less than $5. He was concerned that he would be punished as a result of Amazon's fair pricing guidelines when he spotted the products.
In May, Wang filed a lawsuit against Temu, claiming that Temu and its merchants violated his copyrights and hurt his sales. According to his complaint, Temu and its suppliers copied and sold the fitness equipment in order to duplicate its business success.
According to court documents, the ongoing US claims are among the very first court cases involving Amazon merchants and Temu.