Amazon to launch new discount section as it goes into battle with rivals Temu and Shien

AMAZON is believed to be on the brink of launching a new discount section offering lower-priced goods, in a bid to rival online retailers such as Temu and Shein.

The new channel would offer lower-priced items shipped directly to consumers from warehouses in China, according to reports from the Wall Street Journal.

Amazon has reportedly met with Chinese merchants to discuss its plans to sell unbranded clothing and household products on the new section.

It’s understood the meeting focused on releasing the channel in the US initially.

The marketplace would differ from Amazon's current model, which sees it hold products in its own warehouses and ship them to consumers itself - allowing it to offer fast delivery times and exercise quality control.

Amazon's plans are thought to be a response to the huge popularity of low-cost platforms Temu and Shein, which work on the same model.

But, shipping direct from China could mean that shoppers face longer delivery times and fewer quality checks, in return for cheaper prices.

Standard shipping from Shein takes seven-to-eight business days, while Temu says packages will arrive in six-to-eight business days with standard delivery.

The model also allows retailers to avoid the tariffs and taxes applied when importing products in bulk.

When contacted by The Sun Amazon said it was always exploring new ways to work with selling partners to "more selection, lower prices, and greater convenience", but would not comment whether a low cost channel could be launched in the UK.

The model used by retailers such as Shein and Temu has previously been criticised by rival retailers of abusing the tax system.

Customers have also complained the quality of goods from the two retailers can be poor.

Nevertheless, both have seen huge growth in recent years and Shein could soon be the biggest listing ever recorded on the London Stock Exchange.

It has been valued at £50billion in recent fundraisings and doubled profits to £1.5billion last year.