Amazon launches Haul mobile experience with prices capped at $20 in face of low-cost competition from China-based rivals Temu, Shein
Amazon has said it is “just getting started” with its new Amazon Haul shopping feature that offers products under $20 (£16), as it seeks to compete with the rising popularity of Temu and Shein ahead of the busy Christmas shopping season.
The service, launched currently for US customers as a mobile-only experience, comes amidst the broad popularity achieved by Temu and Shein with their ultra low-cost items usually shipped direct from China.
Similarly, Amazon Haul offers items with prices capped at $20, but with “the majority priced $10 and under” and some as low as $1, along with shipping times of one two two weeks.
The feature is available in an update to Amazon’s mobile app in the US or at www.amazon.com/haul on a mobile browser.
‘Crazy low prices’
The “crazy low prices” include a women’s belt for $1.99, touchscreen winter gloves for $3.21 and a pair of kitchen tongs for $4.99, Amazon said.
Users receive discounts for larger orders, with free shipping for orders of $25 or more and shipping of $3.99 on orders under $25.
“Amazon Haul aims to help make shopping for fashion, home, lifestyle, electronics, and other products even more fun, easy, and affordable,” said Amazon worldwide selling partner services vice president Dharmesh Mehta.
Mehta added that it is “early days for this experience” and that Amazon planned to refine it in the coming weeks and months.
Amazon has not yet commented on a possible launch for Haul in the UK or other markets.
In August Amazon reported slower online sales growth that it attributed in large part to low-cost competition.
The company’s online store sales rose 5 percent year-on-year in the second quarter to $55.4bn, down from 7 percent growth in the previous quarter.
Sales pressure
Chief financial officer Brian Olsavsky said at the time that sales were under pressure due to consumers searching for deals along with competition from the likes of Temu and Shein.
“We are seeing cautious consumers,” said Olsavsky. “They are looking for deals.”
Temu and Shein have been criticised for encouraging the consumption of mass-produced goods whose low cost makes them practically disposable, as well as for using international shipping loopholes to undercut competitors around the world.
EU officials have expressed concern about the volume and quality of products flooding the bloc from the two companies, and are reportedly studying possible actions including customs duties on items that fall below the 150 euro (£125) value threshold at which import taxes are currently applied.