Amazon Competes with Temu and Shein by Launching Discount 'Amazon Haul' Store

The answer to the bargain, low-cost storefronts of Temu and Shein comes from Amazon in the form of the Amazon Haul store.
Amazon Competes with Temu and Shein by Launching Discount 'Amazon Haul' Store

The answer to the bargain, low-cost storefronts of Temu and Shein comes from Amazon in the form of the Amazon Haul store. It is only accessible via mobile app or mobile web browser and carries the same mass-produced, discounted items shipped in from China, a far cry from the long-established reputation of Amazon as a powerhouse of speedy delivery times since even Amazon can't hurry the time it takes to get those overseas goods.

The Amazon Haul landing page design is also somewhat similar to Shein and Temu. Products appear as grids instead of the traditional lists Amazon is known for, and shipping times and star ratings do not automatically appear unless you click on a product. Rocket ship emojis flag some of these products, warning you that this $4.99 iPhone 16 Pro case is "selling fast! " Or, you might notice a fire emoji indicating that the price for a three-pack of $2.89 mesh laundry bags is "crazy low." Like its competitors, Amazon Haul also offers apparel ($16 men's golf pants, or $4.99 the totally tubular women's leg warmers of 80s fashion).

Under a tab marked "Staples," you can find sponges, resistance bands, hoodies, silicon baking mats, and socks.

"While Amazon continues to offer over 300 million items with fast, free delivery for Prime members [.] we also hear from customers that sometimes they'd love to shop ultra-low-priced products even if some of them take one to two weeks to arrive," Amazon wrote in a blog post.

Temu and Shein have come under intense scrutiny over their environmental impact, the fallout from international shipping, and waste produced from fast fashion. These have also attracted the spotlight of consumer protection probes in the European Union as they are looked into their claimed use of addictive design patterns and illegal products.

Despite the growing criticism against them, these cheap retailers are extremely popular among Gen Z. A recent report from app intelligence firm Appfigures showed that Temu is the most downloaded app in the U.S. to date, for users in the age group of 18 to 24 with about 42 million downloads in that age group between January and October 2024. For Shein, that estimate is 14.7 million downloads, although perhaps the difference is so vast because users of Gen Z would have already downloaded Shein, which has been around longer than Temu. One possible risk for Shein and Temu is that consumers will not feel confident to purchase from unknown sellers that could potentially mislead; the consumers have much existing trust in Amazon, but the company is working with similar, largely China-based sellers of mass-produced goods.

However, Amazon argues that it has appropriately screened the vendors before selling it to them, and if the customer wants it returned to him or her, he or she may return it free of charge within 15 days if it is over $3.

It's an uncertain time for Amazon to put money into that business model, since president-elect Donald Trump has suggested using a 60% tariff on Chinese goods imported into the United States. That tariff plan is far from etched in stone, however — it's always a standard for politicians to pivot on campaign planks once they win. However, the phenomenon of Chinese e-commerce imports has also elicited bipartisan interest in acting against what the Biden administration termed "significant increased abuse" of the "de minimis" exception by Chinese e-commerce operators. The de minimis exemption allows shipments worth less than $800 to enter the US duty-free, which in turn helps online retailers like Temu and Shein maintain such low margins.

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2024-11-14 18:41:20