Amazon.com is putting strict price limits on what retailers can charge for their goods on a new low-cost shopfront that the e-commerce behemoth is getting ready to open, according to the Information.
TakeAway Points:
- Amazon.com is imposing severe price caps on what merchants can charge for their products on a new low-cost storefront that the e-commerce giant is preparing to launch, the Information reported on Tuesday.
- Amazon plans to ship orders to U.S. customers directly from a facility in Guangdong, China.
- Roblox, a video game platform that Ankara blocked due to worries that some of its content could lead to child abuse, announced on Tuesday that it intends to open an office in Turkey in accordance with local laws if access is restored.
Price Limit for retailers
The company’s price limits include $8 for jewellery, $13 for guitars and $20 for sofas, according to the report, which cited messages from Amazon to merchants. The messages included a list of 700 items, it said.
Amazon plans to ship orders to U.S. customers directly from a facility in Guangdong, China, the report said, adding that it was charging sellers lower fulfillment fees for items sold through the new storefront.
“We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience,” an Amazon spokesperson said.
Low-price storefront site
The company has been working to roll out a low-price storefront site, according to media reports earlier this year, as it rushes to tackle competition from discount sites such as Temu and Shein, which have exploded in popularity due to their rock-bottom prices.
The price caps, if put in place, would represent a shift in strategy for Amazon, which has historically not set strict limits for sellers on its platform.
This comes at a time when the company is seeing signs of weakness in retail sales. Its online stores sales rose just 5% in the second quarter, slowing from a 7% increase in the first quarter.
Roblox plans to open office in Turkey if granted access
Video game platform Roblox said on Tuesday it plans to open an office in Turkey in line with local laws if access is restored to the platform, which Ankara blocked over concerns that some content could lead to child abuse.
In August, Turkey’s justice minister said access to Roblox was blocked under a court order “to ensure the protection of our children” while an investigation was conducted.
Roblox said it believed it could play a positive role in society by providing “a platform for learning, creation, and meaningful connection”, adding that it was committed to discussing with authorities Turkey’s “unique needs”.
“We have a plan in place to open an office and hire a dedicated team in Türkiye, including additional local language moderators, in the event that access to the platform is restored,” it said.
“Roblox respects the local laws and regulations in Türkiye. We are actively engaged with local authorities and the due legal process to restore access to the platform, while prioritising the safety of players and developers in Türkiye.”
The Roblox ban was imposed a week after Turkey blocked access to social media platform Instagram, owned by Meta, in a move it said was due to Instagram not abiding by certain laws and public sensitivities.
