December 2024
Amazon is producing record profits while investing more than ever before. It reported $22.6 billion in capital expenditures in Q3 — a new high. It also reported a record $15.3 billion in net income.
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Amazon Launch Its Low Cost ‘Haul’ Store
Facing pressure from Chinese platforms that sell products direct from factory to consumer, Amazon has launched a new ‘store’ on its platform called Haul.
China Hub. Guangdong is home to 47% of the Chinese sellers on Amazon. According to the same data, Chinese sellers make up more than half of Amazon’s marketplace.
The concept is still in its early days. However, according to Marketplace Pulse, here’s what Haul will be like:
- Invite-only for sellers based on program eligibility criteria and capacity.
- Amazon fulfills all orders from inventory stored in an Amazon-operated fulfillment center in Dongguan, China.
- No indication if the program is limited to Chinese sellers or if U.S. sellers with manufacturing in China can participate.
- Sellers must list all products with a brand name of “Generic.”
- Items are not part of the regular Amazon search and must be accessed as a separate storefront via the Amazon app.
- Products priced at $3 or less won’t be eligible for buyer returns.
Clash of the Titans as Shein and Temu Sue Each Other
Shein and Temu are gearing up for a 2026 trial at London’s High Court, with the rivals trading allegations of copyright infringement and anti-competitive behavior in competing lawsuits. Their cases at London’s High Court are expected to come to trial towards the end of 2026, Shein’s lawyers said in court documents.
Shein’s Case. Shein sued Temu in Britain last year, accusing Whaleco UK Limited – whose ultimate parent is Temu’s owner PDD Holdings (PDD.O) – of breach of copyright in relation to photos of some products available on the Temu platform, according to a Reuters report.
Temu’s Case. Temu hit back with a counterclaim in February, accusing Shein of breaking British competition law by tying suppliers of fast-fashion products to exclusive agreements, a claim it values at 4.2 million pounds ( $5.5 million) and which Shein denies.
Temu’s lawyers said in court documents for a preliminary hearing in November that Shein is “flooding Temu with unwarranted notices of copyright infringement, disrupting the sale of products”.
US Lawsuits. The London lawsuit is one leg of a global legal battle between the two rivals. Temu sued Shein in the U.S. in December, with Shein filing its own case against Temu in August.
Under Investigation. Shein has faced questions over its treatment of workers and environmental record, particularly ahead of a potential London listing. It has previously said it is committed to respecting human rights and has a zero-tolerance policy for forced labor.
Temu, meanwhile, is facing an investigation from the European Commission over whether it may have breached rules aimed at preventing the sale of illegal products. Temu has said it will cooperate with regulators.
