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whip bull report, october 7 news, according to foreign reports, temu’s attempt to attract amazon merchants has changed the way the two companies operate.

amazon has developed a new storefront to showcase low-priced products on temu, the wall street journal (wsj) reported on sunday (october 6).

temu usually relies on shipping goods from china, but now it has begun building local delivery capabilities and courting u.s. brands and sellers that stock their products within the united states.

jordan berke, founder of retail consultancy tomorrow, expects more brands to turn to temu.

he said: sellers will seize the opportunity to diversify.

the report cited data from similarweb and pointed out that temu has become the second most visited shopping website in the world after amazon and one of the most popular shopping websites in the united states. the wall street journal also pointed out that emarketer's forecast shows that temu's share of the u.s. e-commerce market will triple from 0.7% in 2023 to 2.3% in 2025.

that's still just a fraction of amazon's roughly 40% share of e-commerce. but the wall street journal believes temu's success represents one of the biggest challenges amazon has faced in years, reminiscent of the way its competition with walmart, ebay and target has forced it to lower prices and improve service and delivery.

according to reports, sellers are one of amazon's largest sources of revenue, with the company earning approximately $140 billion in fees from assisting sellers with needs such as logistics and account management.

meanwhile, pymnts wrote last week about amazon and walmart’s efforts to enhance search capabilities using technologies like generative artificial intelligence (genai) in an effort to increase consumer spending and loyalty.

for example, amazon recently shared how new features can improve the visual search experience, including the ability to display images to help users narrow their queries, as well as add text hints to uploaded image searches and more similar recommendations.

walmart is also adding new search capabilities.

"for the retail giant, these innovations complement its efforts to expand its product offerings and aim to better compete with amazon's broad reach through efforts such as expanding its marketplace offerings," pymnts wrote. "as its product categories expand, the retail giant needs to improve consumers' ability to find what they're looking for."

the moves come as consumers seek user-friendly e-commerce journeys, with research from pymnts intelligence showing that 40% of shoppers weigh the ease of navigation of a merchant's online store when deciding where to make a digital purchase.