Amazon's foray into ultra-fast fashion will be a seismic shift in e-commerce

The e-commerce giant Amazon is poised to disrupt the ultra-fast fashion market, a sector currently dominated by Chinese powerhouses Shein and Temu. This strategic move marks Amazon's entry into a burgeoning market segment characterised by rock-bottom prices and direct-from-China shipping models.

With Shein and Temu reportedly dispatching up to 1 million packages daily to the US, Amazon's absence from this lucrative arena has been conspicuous. The Seattle-based behemoth is now set to leverage its vast infrastructure and customer base to compete in this uber price-sensitive market.

Industry analysts note that price continues to be the primary driver of consumer behaviour, often superseding concerns about sustainability or customer service. Amazon's well-honed delivery capabilities, traditionally a key differentiator, may take a back seat as shoppers demonstrate a willingness to accept longer delivery times in exchange for significantly lower prices.

According to Jianlong Hu, CEO of Brands Factory, Amazon's new discounted marketplace will focus on items under 20 dollars across fashion, home, and lifestyle categories. The model closely mirrors that of Shein and Temu, with Amazon managing shipping from its Chinese warehouses directly to US customers, while taking a commission on sales.

This pivot represents a departure from Amazon's oft-touted support for small businesses and entrepreneurs. Instead, it signals an embrace of Shein's data-driven, rapid-production model, capable of bringing designs from sketch to online listing in under two weeks.

Regulatory considerations notwithstanding, Amazon stands to profit substantially from this venture, capitalising on its existing base of over 200 million US shoppers. With recent data from Omnisend suggesting that 57 percent of US consumers have made purchases on Temu in the past year, Amazon appears well-positioned to capture a significant share of this expanding market. Amazon certainly has a higher trust rating than either Shein or Temu, although perhaps it should not.

Implications for global trade

As the lines between traditional e-commerce and ultra-fast fashion continue to blur, the implications for global trade, labour practices, and sustainability remain profound. Amazon's entry into this space may well accelerate the trend towards ever-cheaper, ever-faster fashion – a development that is likely to reshape the retail landscape for years to come.