Amazon Sofas for $20? Retailer Sets Price Caps for New Temu-like Store

As Amazon prepares to launch a new low-price storefront to combat Temu, it’s imposing severe price caps on what merchants can charge for their wares on the outlet, including an $8 limit for jewelry, $9 for bedding sets, $13 for guitars and $20 for sofas, according to messages from Amazon to merchants seen by The Information.

The price caps ensure that Amazon’s new storefront site is competitive with the bargain-basement prices on Temu, the two-year-old site owned by PDD Holdings whose success has forced Amazon to rethink how it runs its e-commerce business. It is a significant departure for Amazon, which hasn’t historically set hard-and-fast price limits for merchants selling on its service.