The rise of Temu is proof that Amazon has not monopolized the industry!

Temu's "Shop Like a Billionaire" is popular among American consumers; SHEIN's American users account for about 20% of the world's users; TikTok is also gearing up to expand its U.S. e-commerce business tenfold...

Chinese e-commerce platforms represented by Temu, SHEIN, TikTok, etc. are constantly impacting Amazon's market share.

According to data provided by Earnest Analytics , Temu has captured nearly 17% of the US discount retail market, which is almost the same as the old brand Dollar Tree ; the Wall Street Journal also reported that SHEIN's turnover has soared to US$23 billion, surpassing H&M ; and TikTok has occupied 25% of the domestic e-commerce market in just four years. If it vigorously develops the US market, the results will surely be satisfactory.

Logically, these are the reasons why Amazon is worried about its market share being impacted, but surprisingly, Amazon actually used these as evidence to refute the "antitrust" case filed by the US Federal Trade Commission (FTC).

As we all know, Amazon boss Andy Jassy is currently involved in an "antitrust" lawsuit with the FTC headed by Lina Khan . The lawsuit mentions a lot of things, such as the company forcing sellers to keep Amazon's product prices the lowest on the Internet; for example, the company forcing sellers to use Amazon's own logistics. These have also become "evidence" for Amazon to suppress other companies.

When refuting the antitrust allegations, Amazon actually stated that the rapid rise of Temu and SHEIN proved that the company did not suppress other companies or monopolize the industry.

Although the rise of platforms such as Temu has become evidence for Amazon to refute the FTC, industry insiders still believe that the negative impact is more of a headache for Amazon than the positive impact. After all, once market share is lost, it is not easy to make it up.

It is reported that Amazon has been discussing countermeasures to fight against Temu and other platforms. For example, the commission reduction for clothing sellers that will be implemented soon is a means to deal with Chinese platforms.

But for now, Amazon's power is still unshakable. According to data from Business of Apps , the number of Prime users in the United States last year was about 168 million, an increase of about 14% from 2021. In the case of the FTC's lawsuit, Amazon's market value has also increased by 75% in more than a year, an increase of $660 billion.

In this regard, some foreign media joked that Lina Khan would be very happy if platforms such as Temu, SHEIN and TikTok could significantly reduce Amazon's market share.

In addition to using Temu and other platforms as examples, in order to get rid of "antitrust" lawsuits, Amazon has also carried out a series of reforms, such as providing more delivery options for sellers on the platform.

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