Amazon Takes on Temu and Shein with New Low-Cost Outlet ‘Haul’

• Amazon has launched Haul, a new budget-friendly outlet on its mobile app, offering items priced under $20 to compete with low-cost retailers like Temu and Shein.
• Haul features unbranded products shipped from a warehouse in China, with free shipping on orders over $25 and delivery times ranging from one to two weeks.
• Despite its affordability, Haul could face regulatory challenges due to global scrutiny on low-cost imports and environmental concerns surrounding fast fashion and mass-market goods.

Amazon has introduced Haul, a mobile-exclusive shopfront offering items under $20 (£15.79), in an effort to rival low-cost brands like Temu and Shein. Available exclusively to U.S. customers on Amazon’s app, Haul promises “incredibly low prices,” with delivery times ranging from one to two weeks in exchange for the budget-friendly deals.

What is the Amazon Haul?

Amazon’s Haul is a budget-focused shopfront designed for savvy shoppers, offering a variety of unbranded items, including electronics, clothing, and household essentials. Most products are priced under $10 (£7.90), with standout deals like a three-piece razor set and jewellery set for less than $3 (£2.37). Free shipping is available for orders over $25 (£19.75), reinforcing Haul’s value-driven appeal.

Products are shipped from a Chinese warehouse, mirroring the supply model used by Temu and Shein. Despite this, Amazon maintains its hallmark commitment to product safety and reliability, ensuring shoppers can enjoy affordability without compromising on trust.

Competition: Temu and Shein

Chinese e-commerce giants Temu and Shein have transformed the online shopping landscape with their rock-bottom prices and vast catalog of mass-produced goods. Temu boasts a wide array of products, from clothing and kitchen gadgets to accessories, while Shein focuses on trendy, budget-friendly fashion for young women. Despite their popularity, both platforms have faced criticism for their environmental impact and inconsistent product quality.

Amazon’s Haul steps into this competitive space as a direct rival but may face similar scrutiny, particularly regarding the environmental toll of shipping low-cost goods across the globe. However, Haul aims to leverage Amazon’s trusted brand reputation and customer guarantees to stand out. As Forrester retail analyst Sucharita Kodali points out, “There’s evidence that consumers are growing tired of poor-quality goods and slow shipping,” signalling an opportunity for Haul to meet these evolving expectations while addressing key concerns.

Balancing Affordability and Challenges

Amazon’s foray into this budget-friendly market comes at a critical time, though it may face significant regulatory hurdles. For example, the European Commission had launched an investigation into Temu for allegedly selling illegal products, while the U.S. Biden administration had indicated a crackdown on inexpensive imports from China. These actions could lead to higher customs duties and shipping costs for platforms like Haul.

Despite these challenges, Amazon aims to differentiate Haul by leveraging its strong reputation for customer trust. Dharmesh Mehta, Amazon’s Vice President of Worldwide Selling Partner Services, emphasised the company’s commitment to improving Haul based on consumer feedback, hinting at a phased growth strategy.

Is Haul the Future of Budget Shopping?

Haul’s launch underscores Amazon’s ability to innovate and adapt in an increasingly competitive e-commerce market. By combining low prices with Amazon’s trusted infrastructure, the platform aims to appeal to budget-conscious consumers, a segment that has already driven the success of competitors like Temu and Shein. However, Haul’s success will hinge on its ability to balance affordability with product quality.

As Amazon enters this new venture, it’s clear the company is positioning itself to navigate the evolving world of budget online shopping. While it remains uncertain whether Haul will topple its rivals, its arrival has undeniably added a dynamic to the ongoing low-cost retail battle.