Amazon’s pricing searching algorithm excludes Temu, alleging the site doesn’t satisfy its requirements.
Amazon says September-launched Temu doesn’t match its fair pricing policy standards. Temu, owned by PDD Holdings, may undercut Amazon’s marketplace merchants on general products.
The price system, which utilizes automatic and manual tracking, examines items on and off Amazon to verify merchants on its marketplace are not charging much more than Amazon rivals.
Amazon avoids pricing wars with untrustworthy competitors. The business stated its certification rules prevent it from comparing pricing against items from problematic marketplaces, including counterfeits.
Temu sells mostly Chinese goods.
Temu advertises $5 gowns and $2 beauty brush sets from China to compete with Amazon.
Temu and Mandell Menkes’ U.S. counsel did not respond to several queries. The corporation has “a strict policy against the listing or sale of products that violate a third-party’s trademark, copyright or patent rights,” according to its website.
Temu is “not actively involved in the listing and sale of sellers’ items,” and dealers must get shop permits, according to the statement.
Amazon’s choice to disregard Temu’s pricing rather than compete with them illustrates the challenge of keeping prices competitive while assuring product safety and authenticity.
Amazon has dealt with counterfeits before. The retailer reports more fakes to law authorities and has other counterfeit-fighting activities.
According to YipitData, Temu’s general merchandise value rose from $141.5 million in January to $634.8 million in May.
Amazon sellers without competitive pricing risk losing their Buy Box, which lets customers easily buy things, unless they match their competitors’ prices.
Amazon bans repeat offenders selling pricey goods.
“If we see pricing practices on a store offer that harms customer trust, Amazon can remove the Featured Offer, remove the offer, suspend the ship option, or in serious or repeated cases suspend or terminate selling privileges,” according to Amazon’s Marketplace Fair Pricing Policy section on its website.
Amazon strives “every day to provide customers with low prices.” However, comparing pricing to Temu might punish or push many merchants to lower their prices to unprofitable levels.
In an interview with Reuters, MaiBo Technology Company CEO Feixiang Wang said he spotted claimed replicas of his company’s $25.99 FitBeast-stamped workout equipment on Temu for around $5. He thought Amazon’s fair pricing policy would punish him after seeing the merchandise.
In May, Wang sued Temu in U.S. District Court in the Northern District of Illinois, saying that Temu and its suppliers infringed on his copyrights and damaged his sales. After “seeing the success” of FitBeast workout equipment, Temu and its distributors duplicated and distributed the items to steal its “business success,” his complaint states.
In April, Shenzhen Kangmingcheng Technology, which sells $29.99 Hicober-branded microfiber hair turbans on Amazon, sued Temu for infringement. The lawsuit claims Temu wears a $5.88 turban.
According to court records, Amazon sellers and Temu’s initial cases are in the U.S.