With Amazon's extremely popular Prime Day sales event just around the corner, a surprising report has been released suggesting a new direction for the company.

According to The Information, Amazon said in a meeting with Chinese sellers that the company is working on building a new discounted merchandise section that will ship directly to consumers from its warehouse in China.

This will be different from the Amazon Basics product line currently offered. Instead, these discounted products will be no-brand fashion, housewares, and household items.

This move appears to be in response to bargain sale websites and apps like Temu and Shein. These companies ship directly from China to U.S. customers at heavily discounted prices.

Even if you have never used Temu or Shein, both companies have experienced significant growth in the US over the past few years. Temu's ads are almost everywhere, from YouTube and daytime TV to phone games and websites.

Shein carries only clothing and clothing accessories, while Temu is more of a direct competitor, and Amazon offers just about everything you can imagine. And some things you never even imagined.

Unlike the items offered through Prime, the new discounted items will be shipped from overseas, which means longer delivery times (9-11 days).

An Amazon spokesperson told The Information, "We are always looking for new ways to work with our sales partners to delight our customers with a larger selection, lower prices, and greater convenience."

According to the report, Amazon.com's home page will have a new section featuring bargain products. Chinese sellers will be able to determine the prices and products that will go into this new section.

This appears to be one way for sellers to test small quantities of merchandise before launching larger waves based on interest; Shein uses a similar model to minimize unsold inventory; Temu is more rigorous, with the company dictating pricing; and Amazon.com is more flexible, allowing sellers to choose their own pricing, marketing and operating storefronts for sellers.

There is concern that Amazon may get caught up in taking advantage of a U.S. trade provision that says packages under $800 are exempt from duty; Temu and Shein are taking advantage of that provision for their goods.

There is growing anti-Chinese sentiment within the U.S. government and talk of closing this tariff loophole. If that happens, it could stop Tem and Shein in their tracks in the U.S., and Amazon may not need to create this new discount section.

Meanwhile, Chinese sellers are being asked to register this summer, and Amazon will begin accepting items in the fall. Presumably, U.S. customers will see this new section, and more likely, it will begin in time for holiday season purchases.