The news that Amazon has added Temu to its list of monitored competitor sites, requiring Sellers to avoid lower pricing there if they want to stay visible on Amazon, might seem like a limitation at first glance. But for many brands, this shift is a net positive. Here’s why – and how to turn this development to your advantage…
What it means for Amazon Sellers
This move by the retail giants cements Amazon’s commitment to protecting the marketplace, and Amazon brands, against Temu’s aggressive pricing and rapid growth.
The marketplace is built on consumer trust – shoppers know they can rely on transparent pricing, reliable fulfillment and authentic products, and Sellers benefit from the conversions that trust drives.
By taking steps to keep Amazon the most competitive platform, the marketplace is reinforcing its position as the credible first-choice for consumers – effectively asking Sellers to repay the efforts Amazon has put into building that consumer trust over the years.
For many brands, this policy will come as a welcome safeguard against Temu’s dynamic pricing which, by changing based on a customer’s likelihood to purchase, makes a competing brand’s overall pricing decisions unbelievably tricky, not to mention undermining transparency and trust with buyers.
By coming out officially against Temu, those Sellers who felt threatened can rest easier, and strategise far more effectively and consistently when it comes to their pricing strategies.
And if your competitors decide to undercut your brand on Temu? You’ll have the advantage of Amazon’s unmatched visibility, strong reputation and stable and structured environment – and they’ll be in a race to the bottom.
3 ways to turn this to your advantage
Double Down on Your Amazon Strategy
Amazon’s stance is a clear signal – if the marketplace is your primary channel, now’s the time to focus on optimising your performance. Make sure to:
- Price strategically, using tools like Amazon’s pricing recommendations and third-party repricing software to get and stay in the Featured Offer.
- Enhance your listings, standing out with enriched product pages, clear images and compelling copy.
- Leverage Amazon Ads to maximise visibility and keep your products top of mind for buyers.
Build on Amazon’s own credibility
Buyers trust Amazon because of its reliable fulfillment and authentic products. Building on that by showcasing your own trustworthiness as a brand turns it to your advantage, so:
- Highlight your positive reviews, ratings and testimonials to enhance buyer confidence.
- Maintain exceptional customer service.
- Offer valuable add-ons like warranty options and no-quibble returns to set your brand apart.
Stay agile – and in control
Temu’s variable pricing model might appeal to some brands, but it comes at the cost of control.
Putting Amazon first means you can stay consistent in your pricing and branding across all your channels – and that’s an advantage both in building long-term customer relationships, and in building a sustainable and profitable e-commerce business.
The Bottom Line
Amazon’s Temu pricing policy might come across as restrictive but, for Amazon-focused brands we see it wholly positive.
The move reinforces Amazon’s credibility, keeps things less complex for Amazon Sellers and protects brands who put the marketplace’s reach, trust, visibility and stability first.
If Temu is putting pressure on your brand, now’s the time to think about how you can leverage Amazon’s strengths to your advantage: doubling down on optimisation, focusing on quality and using data well to stay agile.
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