Amazon has launched a new online store called Amazon Haul, designed to offer electronics, clothing, and other items at significantly low prices, aiming to compete directly with discount retailers like Shein and Temu.
This strategic move aims to strengthen the position of the e-commerce giant against the rising dominance of these emerging platforms, which have gained popularity due to their ultra-low pricing models and focus on young consumers.
Features of Amazon Haul
The store, accessible through the Amazon app and its mobile website, specializes in unbranded products, many of which are priced under 10 dollars.
Featured items include phone cases and hair brushes for $2.99, as well as sleeveless dresses for $14.99.
To encourage purchases, Amazon offers free shipping on orders over $25.
Haul's inventory focuses on low-cost products similar to those offered by Shein, known for attracting primarily young women with affordable clothing, and Temu, which offers a wider range of items, including accessories, kitchen utensils, and other everyday products.
Amazon Haul orders will be managed from a warehouse located in China, allowing the company to offer competitive prices.
However, shipments could take between one to two weeks to reach consumers in the United States, according to documents shared with sellers.
Positioning and promotional messages
Amazon seeks to strengthen its value proposition by emphasizing messages that highlight "incredibly low prices" and activewear that "won't stretch your budget."
Dharmesh Mehta, Vice President of Global Services for Vendor Partners, explained that the company is exploring new ways to collaborate with its vendors to offer products at ultra-low prices.
"This experience is in its early stages, and we will continue to listen to customers as we refine and expand it in the coming weeks and months," Mehta stated in a statement.
Competitive Context
Temu and Shein, e-commerce platforms founded in China, have experienced rapid growth in recent years.
Shein has focused on ultrafast fashion, while Temu has broadened its scope to multiple product categories, attracting consumers looking for deals.
However, both companies face criticism regarding the environmental impact of their business models and have come under scrutiny from lawmakers and regulators in the United States and other countries.
The fast fashion business model, characterized by the mass production and sale of items at very low prices, has raised concerns about its contribution to pollution and waste.
Additionally, the quality and labor practices behind these products have been called into question.
Challenges for Amazon
The launch of Haul faces significant challenges, particularly due to the trade tensions between the United States and China.
In September, the Biden administration announced measures to restrict imports of low-cost products from China, a strategy aimed at reducing dependence on Beijing.
This policy could lead to higher costs for Amazon, which could be passed on to consumers.
Former President Donald Trump also proposed a 60% tariff on Chinese goods, a measure that, if implemented, could impact Haul's operations and increase the prices of its products, thereby reducing its competitiveness compared to other platforms.
Changes in the Amazon Ecosystem
In addition to the launch of Haul, Amazon announced this week that it will be shutting down its free, ad-supported streaming service, Freevee, to consolidate all content under Prime Video. According to the company, this decision aims to simplify the user experience.
Starting in the coming weeks, Freevee content will be labeled as "Watch for Free" within Prime Video, allowing both Prime members and non-subscribers to access free movies and series.
A spokesperson for Amazon stated that there will be no changes to the content available for Prime members, and that the selection of free content will remain extensive for all users.
Frequently Asked Questions about Amazon Haul and Its Market Competition for Discounts
What is Amazon Haul and what does it offer?
Amazon Haul is a new online store from Amazon that offers products at significantly low prices. The store specializes in unbranded items, many priced under $10, and aims to compete with platforms like Shein and Temu.
How does Amazon plan to compete with Shein and Temu?
Amazon plans to compete with Shein and Temu by offering products at ultra-low prices, similar to what these platforms do. Additionally, Amazon provides free shipping on orders over $25 and manages orders from a warehouse in China to keep costs competitive.
What are the main criticisms of platforms like Shein and Temu?
Shein and Temu have faced criticism for the environmental impact of their business models and for the quality and labor practices behind their products. The fast fashion model is being questioned for its contribution to pollution and waste.
What challenges does Amazon face with the launch of Haul?
Amazon is facing challenges such as trade tensions between the United States and China, which could increase costs and affect the prices of Haul products. Restrictions on the importation of low-cost goods from China pose a significant hurdle.
What changes has Amazon recently implemented in addition to Haul?
In addition to the launch of Haul, Amazon has shut down its free streaming service Freevee to consolidate its content under Prime Video. The content from Freevee will now be labeled as "Watch for Free" within Prime Video, allowing access to free movies and series for both Prime members and non-subscribers.
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