Maximizing Opportunities in the Amazon Low-Price Store for Sellers

As early as June this year, Amazon announced that it would launch a low-price mall project. Recently, Amazon said that the new low-price mall will be launched in November. Although the specific date has not been announced, it has still attracted the attention of many e-commerce sellers. What is the sales model of the low-price mall? What preparations are needed to join?

Ⅰ.Amazon Low-Price Store

1. Operational model

Open a new low-price product store on the main site. Buyers can access this store through the Amazon app on the main site homepage. The low-price product store is currently only available in the United States and shares the backend with the main site store, and stores are managed in a switching site mode.

Sellers have the right to select products, set prices and participate in activities, but cannot decide on advertising activities independently, and products do not support follow-up sales.

2. Product requirements

First of all, the categories are limited. Only unbranded fashion products, household items and daily necessities can be sold. Edibles, smears, dangerous goods, etc. cannot be sold. In terms of specifications, the weight cannot exceed 1 pound and the volume cannot exceed 14*8*5 inches.

When creating and modifying product information, you cannot use the same SKU on both the main site and the low-price store. The low-price store has a maximum price limit for different product types. For example, the maximum price for bookshelves, bracelets, etc. is no more than $9, and the maximum price for digital cameras, desks, etc. is no more than $20.

3. Logistics and warehousing

Unlike FBM, Amazon is responsible for the fulfillment and delivery of orders for low-priced goods stores. The inventory is stored in an operations center operated by Amazon in Guangdong, China. The storage fee is US$0.4 per cubic foot per month. There is no capacity limit and no overage storage fee is charged. It is shipped directly from China to the United States, and the logistics delivery time is estimated to be 9-11 days.

Amazon promises that shipping costs from domestic warehouses will be lower than traditional FBA (Fulfillment by Amazon) fees, similar to domestic air parcel services, which will undoubtedly significantly reduce sellers' logistics costs.

4. Related expenses

The commission for low-price product stores is the same as that for the main site stores, which is 15%. There are also special rates for logistics for low-price, low-weight products.

5. After-sales rules

The return window period for low-priced goods stores is within 15 days from the date of delivery. If goods priced below US$3 are to be returned after sales, a refund will be issued without return.

Ⅱ. How should merchants prepare?

1. Product selection

Choose products carefully, pay attention to product quality and differentiation, differentiate yourself from the main site store and other low-priced mall stores, and avoid inefficient and harmful pure price competition.

2. Pricing

As a project benchmarking Temu, Amazon's low-price mall adopts a low-price strategy. To compete in the low-price mall, it is necessary to ensure the competitiveness of product prices while not damaging the profit margin of the store. Otherwise, it is easy to lose more than the gain.

3. Supply Chain

Clarify platform rules and market demands, select suitable and reliable suppliers and pay close attention to the supply chain situation, adjust strategies in a timely manner, and try to increase advantages through product quality and added value.

4. Operational network isolation

For some sellers who operate multiple Amazon stores, anti-association is still the key point. Only with reliable anti-association tools can the normal operation of multiple stores be guaranteed. Using IPFoxy's dedicated static residential proxy, combined with environmental equipment isolation tools such as fingerprint browser, can provide a safe and isolated network environment for stores, simulate real users to prevent abnormal conditions that affect store operations, make the low-price model more stable, and prevent account loss.

Ⅲ. Final Thoughts

Although the low-price mall is currently an invitation-only platform, the purpose of launching the low-price mall is to resist the impact of other platforms, so the possibility of opening it up later is very high. Sellers must be fully prepared to better meet new challenges and seize new opportunities.