From Nasdaq:

Amazon’s stock fell 50% in 2022 but surged more than 80% in 2023 despite concerns over its future growth. Two competitors, PDD Holdings’ Temu and Shein, have seen massive growth, and Amazon’s core e-commerce businesses are in slow recovery. Temu and Shein have the potential to undercut and pull shoppers away from Amazon with cheaper products and strong marketing strategies.

PDD’s Temu has been downloaded 250 million times and is now the most-downloaded shopping app among U.S. users. Shein has reached 88.8 million users, mainly in the United States, Brazil, and Mexico. Temu and Shein offer lower prices for their products, and are engaged in a large marketing blitz on major social media platforms.

Amazon’s North American business experienced a slowdown in 2022, with its international business showing signs of a fragile recovery. Meanwhile, PDD’s cloud business has cooled down, indicating that Amazon’s core businesses haven’t fully recovered. Temu and Shein could further derail Amazon’s recovery, signifying potential problems for the company in the near future.



Read more: Can Amazon Stay Ahead of PDD’s Temu ad Shein in 2024?