Imagine a dedicated marketplace section built for "ultimate cost-performance" emerging in the vast ocean of products. What impact would this have on cross-border e-commerce? Amazon's rumored "Budget Store" is preparing to unleash precisely such a transformation. Will this long-anticipated "secret weapon" finally be unveiled, and how might it reshape the competitive landscape?
The "Budget Store": Amazon's New Strategic Move?
In June, Amazon quietly held a closed-door meeting in Shenzhen, revealing plans for its upcoming "Budget Store" to select sellers. This exclusive section will focus on fashion, home goods, and daily necessities priced under $20. Operating similarly to a "fully managed" model, sellers need only ship products to Amazon's Chinese warehouses, while the platform handles promotion, traffic acquisition, and fulfillment services, with delivery estimated at 9-11 days.
The store will offer 15-day no-questions-asked returns, with items under $3 qualifying for refunds without returns—a strategy clearly designed to lower buyer hesitation.
This initiative appears to be Amazon's direct response to the rapid rise of platforms like Temu and SHEIN, which have captured significant market share through aggressive pricing. The "Budget Store" signals Amazon's determination to compete in the budget segment it previously overlooked.
Seller Reactions: Opportunities Versus Challenges
The announcement has elicited mixed reactions. Some sellers fear intensified price wars in an already competitive market, potentially squeezing profit margins and threatening smaller merchants' survival. Others, particularly factory-based sellers with strong supply chains, see this as an opportunity to leverage economies of scale in a new sales channel.
Behind the Scenes: Current Testing Phase
While Amazon remains tight-lipped about specifics, invited sellers confirm the project remains in limited testing. Participation requires an exclusive invitation, with even top-performing sellers reportedly excluded. Selection criteria appear category-specific, with only a few sellers per product type chosen for testing.
To maintain its "super affordable" positioning, Amazon has imposed strict price ceilings based on product categories.
Entry Requirements: Size, Weight and Compliance
Beyond pricing, Amazon has established clear guidelines:
- Warehouse-stored items must weigh under 1 pound or measure smaller than 14×8×5 inches
- New ASINs require complete dimension/weight details to avoid listing deactivation
- Prohibited items include hazardous materials, batteries, ingestibles (food), and topical skin products
- All products must comply with trade policies, with no additional cross-border documentation required
- Listings require unique SKUs, preferably prefixed (e.g., "LowCostsStore") for identification
Imminent Launch? Sellers Report Inventory Preparation
Evidence suggests advanced testing is underway, with some invited sellers already uploading products and shipping inventory to Amazon's Dongguan warehouse. One seller noted: "Amazon managers indicated a potential November launch—we've prepared dozens of listings." However, others suggest broader access may wait until 2024, with current testing focused on select U.S. stores.
U.S. Market Shifts: T86 Policy Tightening
As Amazon prepares its budget initiative, U.S. policy changes add complexity. On September 13, the White House announced measures targeting small parcels from platforms like Temu, SHEIN, and AliExpress, urging Congress to reform the "de minimis" exemption policy that currently benefits sub-$800 shipments.
Effective October 3, U.S. Customs will enforce the Air Cargo Advance Screening (ACAS) program, requiring:
- Pre-loading electronic submission of shipment data to Customs' ATS system
- Enhanced low-value goods data collection with strict accuracy requirements
- $2 processing fees per de minimis shipment
- Fines up to $5,000 for sub-$5 parcel violations
- Reduced 15-day abandonment window for unclaimed shipments
These changes may increase clearance times, costs, and operational uncertainties for sellers.
Navigating Change: Compliance as Priority
In this evolving landscape, platforms and sellers must prioritize accurate documentation while monitoring regulatory developments. Proactive adaptation will separate winners from those overwhelmed by the shifting terrain.
Amazon's "Budget Store" represents both disruption and opportunity. Its ultimate impact will depend on sellers' ability to align supply chains with this new model while maintaining compliance amid tightening regulations. While the exact launch timeline remains uncertain, all signs point to an imminent arrival that could redefine budget e-commerce.