Amazon Launches Budget-Friendly "Haul" Store to Target Shein and Temu
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Amazon is launching a new mobile-only storefront called "Amazon Haul," designed to compete with low-cost retailers like Shein and Temu, reports CNN. The store features a wide array of products priced at $20 or less, with many items costing under $10.
Amazon's move is a direct response to the growing popularity of Chinese online marketplaces among budget-conscious US shoppers, according to Neil Saunders, managing director for retail at GlobalData.
"The value retail segment has been a major growth area over the past few years, and while the main Amazon site has a good value-for-money reputation, its wide offer means that it is not primarily seen as an everyday low-price destination," Saunders told CNN.
Amazon highlights that a majority of Haul items are priced under $10, with some even below $1. However, the low prices come with a trade-off: shipping costs apply to orders under $25, and delivery times can range from one to two weeks. Additionally, returns are only accepted for items priced $3 or more.
In a subtle jab at competitors like Shein and Temu, which have faced scrutiny from US regulators over safety concerns, Amazon emphasizes its product screening process.
"[Amazon] screens the products sellers offer in Haul so customers can be confident they’ll receive products that are safe, authentic, and compliant with applicable regulations," Amazon stated in an announcement.
Saunders suggests that while Haul could potentially cannibalize sales from Amazon's flagship website, it is a strategic move to prevent losing market share to competitors. The new storefront is also anticipated to appeal to younger demographics who frequently shop on rival platforms.