Amazon is preparing to launch a low-cost storefront as it ramps up its fightback against Chinese deep-discounting rivals Temu and Shein.

The US retail giant is imposing price caps for the first time in its history, regulating how much vendors can charge for their items in order to be featured on the new portal.

“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 told Reuters.

Citing The Information, Reuters reported that Amazon’s price limits include $8 for jewelry, $13 for guitars and $20 for sofas.

The company will ship the items to US customers directly from a facility in Guangdong, China.

Amazon will also charge sellers lower fulfilment fees for products sold through the new storefront.