Amazon took advantage of tax laws that allowed online retailers to avoid collecting sales tax to create a pricing advantage. Now, Temu has a pricing advantage created by not paying customs duties and/or taxes.
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"As of 2023, Google estimates that Amazon's revenues are larger than Google's in retail advertising," according to Google's testimony in the DOJ vs. Google court ruling.
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Competition from Shein and Temu forced Amazon to lower fees, enabling sellers to lower prices, which, in turn, led to shoppers buying more items on Amazon.
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Most American Amazon sellers stick to selling in the U.S. Despite Amazon's attempts to foster cross-border e-commerce, less than 1% sell outside the continent.
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Amazon's AI shopping assistant is great at answering questions about a specific product but cannot help sort through the endless aisles of its infinite catalog.
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Temu wants to be more like Amazon, to reduce supply chain risk and offer faster shipping, while Amazon is racing to replicate Temu because it cannot ignore the fact that its low prices trump Amazon's convenience for some shoppers.
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Amazon, Walmart, and TikTok Shop are the three top marketplaces for U.S. brands. However, if Temu and TikTok achieve their goals this year, they will overtake Walmart in the marketplace ranking.
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Amazon will launch a Temu, Shein, and AliExpress competitor featuring low-price items shipped directly from China. Amazon's main quest remains Prime, but it has accepted a new side quest.
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None of the ads from Amazon's $49 billion ad network won any awards at the prestigious Cannes Lions, but Amazon was the most visible company at the festival.
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TikTok hosted its first $1 million shopping livestream. TikTok Shop is bringing the long-promised live commerce to the masses.
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