In the race for U.S. retail consumers, Amazon is grappling with competition from emerging e-commerce players like Temu. Notably, Temu has seen a significant increase in daily active users, surpassing Amazon's user growth. While Amazon caters to a more affluent customer base, Temu appeals to lower-income customers migrating from physical dollar stores, prioritizing cost over quality and swift delivery. The battle hinges on satisfying customer needs and aligning capabilities with user demands. Amazon's logistics and product variety uphold trust, while Temu's aggressive marketing and links with Chinese manufacturers attract price-sensitive consumers. Temu's ascent in the U.S. market could pose a threat to Amazon, potentially influencing consumer behavior. However, Amazon's current stock performance suggests investor confidence in its future, despite the challenges posed by Temu's growth.