Amazon.com Inc. is preparing to unveil a low-price online store to rival PDD Holdings's Temu, The Information reported on Tuesday.

The date of the launch is still unknown; however, Amazon allegedly already started communicating with its merchants on a forum dedicated to communication between the company and the sellers about the rules and price restrictions that will be applied to the new website.

"To ensure ultra-affordable prices for customers, the Low-Cost Store has maximum eligible price points at the product-type level," Amazon told the sellers in an e-mail obtained by The Information, adding that, if they would rather not adhere to that, continue using the company's regular webstore.