Amazon is gearing up to roll out a new budget-friendly storefront aimed at capturing the market of price-conscious shoppers who currently favor discount platforms like Temu and Shein. The initiative is designed to rival these low-cost platforms by introducing strict price caps on hundreds of products, from guitars to sofas, ensuring consumers can find cheaper alternatives to everyday items.

According to reports, Amazon has set price limits on various products, with jewelry being capped at $8, guitars at $13, and sofas at $20. The restrictions are part of Amazon’s broader strategy to offer extremely low prices in a bid to attract customers looking for more affordable goods. Merchants selling on the platform will have to adhere to these guidelines, limiting how much they can charge for certain items.

The new storefront will source many of its products from Guangdong, China, which will allow Amazon to reduce fulfillment fees and offer more competitive pricing to sellers. This cost-cutting measure is expected to help Amazon compete directly with rivals like Shein and Temu, which have gained popularity among consumers for their rock-bottom prices on a wide range of products.

Amazon has provided sellers with a list of over 700 items that will be subject to the price caps, further underlining the company’s commitment to positioning itself as a leader in the low-cost e-commerce sector. These items will range across categories, including home goods, electronics, and apparel, offering consumers an extensive selection at reduced prices.

In a statement to Reuters, an Amazon spokesperson explained, “We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience.” This move marks a significant push by Amazon to gain ground in a competitive retail environment where price is becoming an increasingly decisive factor for consumers.