Amazon has reportedly instructed some Chinese merchants to refrain from listing items at lower prices on the rival platform Temu.

This directive comes in response to the increasing competition from Temu, which is owned by PDD Holdings.

Sellers have indicated that Amazon’s local office in China informed key cross-border brands that pricing identical products cheaper on Temu could impact their standing on Amazon’s platform.

Those sellers whose products were found to be less expensive on Temu allegedly lost eligibility for Amazon’s Featured Offer program.

Amazon has not publicly addressed these claims regarding the pricing pressure.

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