Amazon is excluding Chinese rival Temu from its price searching algorithm, claiming it does not meet its strict qualification requirements for Amazon’s fair pricing policy.
The algorithm, which checks if products sold on its platform are competitive with its rivals, could result in some products on Temu beating out prices offered by the ecommerce giant’s fair price policy.
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Amazon’s pricing algorithm uses automated and manual tracking methods, to compare prices on and off the platform, ensuring sellers on its marketplace are not charging significantly more than rivals.
The company said its qualification standards ensure that it does not compare prices against “questionable” marketplaces – including products that might be counterfeit.
However, on its website, Temu claims that it has “a strict policy against the listing or sale of products that violate a third-party’s trademark, copyright or patent rights.”
Temu is “not actively involved in the listing and sale of sellers’ items,” and vendors are responsible for getting the necessary licenses for their stores,” the statement added.
