// Amazon is exempting Chinese competitor Temu from its price-matching checks amid concerns from third-party merchants about fake goods
// Temu has touted low prices for home goods, electronics and apparel shipped from China, including $5 dresses and $2 make-up brush sets
Amazon is excluding its new rival Temu from its price searching algorithm that checks if products sold on its platform are competitive with rivals, saying the site doesn’t meet its standards.
According to the ecommerce giant, Temu, the online marketplace that launched in September, does not meet its strict qualification requirements for Amazon’s fair pricing policy.
That means some low-priced general merchandise on Temu could beat out prices offered by Amazon’s marketplace sellers.
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The pricing algorithm uses automated and manual tracking methods, to check products found on and off Amazon, ensuring merchants on its marketplace are not charging significantly more than its rivals.
Amazon is wary of engaging in a price war with competitors it does not consider reputable.
The business said its qualification standards ensure that it does not compare or match prices against what is sees as merchandise from questionable marketplaces – including products that might be counterfeit.
Much of the merchandise sold on Temu is from vendors and suppliers based in China.
In ads on social media, Temu has touted low prices for home goods, electronics and apparel shipped from China, including $5 dresses and $2 make-up brush sets, with the hopes of competing with Amazon to see similar success as online giant Shein.
On its website, the company states that it has “a strict policy against the listing or sale of products that violates a third-party’s trademark, copyright or patent rights”.
Temu is “not actively involved in the listing and sale of sellers’ items”, and vendors are responsible for getting the necessary licenses for their stores, the statement says.
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