Amazon has introduced a budget-friendly online marketplace called Amazon Haul, which focuses on selling various products, including electronics and clothing, all priced below $20. This initiative is aimed at positioning Amazon against discount retailers that are becoming increasingly competitive in the e-commerce sector.
On Wednesday, the company announced that the Amazon Haul storefront will primarily present items costing under $10 and will provide complimentary delivery on orders exceeding $25. Products will be sent to U.S. customers from a warehouse located in China, based on information shared by Amazon with its sellers. The firm noted that customers could expect Haul orders to arrive within one to two weeks.
As of the recent launch, many offerings within the Haul storefront were reminiscent of goods typically sold by Shein and Temu, two e-commerce platforms originating from China that have gained significant market traction lately. Shein primarily attracts young women with its affordable clothing options, while Temu presents a variety of items ranging from clothing and accessories to kitchen tools, catering to budget-conscious consumers.
Both Shein and Temu have drawn criticism concerning the environmental consequences of their ultra-fast fashion business models. Additionally, they face challenges from lawmakers and regulatory bodies in the U.S. and internationally over various concerns related to the quality and sourcing of their products.
Exclusively available through Amazon’s shopping app and mobile website, the Haul storefront showcases unbranded products like a $2.99 phone case and a hairbrush, alongside a sleeveless dress priced at $14.99. The messaging around this new store emphasizes value, with promotional banners highlighting “crazy low prices” and activewear options that “won’t stretch your budget.”
“Customers find significant products at low prices of utmost importance, and we are constantly investigating ways to collaborate with our selling partners to present products at ultra-low price points,” stated Dharmesh Mehta, Amazon’s vice president of Worldwide Selling Partner Services. “This is just the beginning for this initiative, and we are committed to listening to customers as we refine and expand our offerings in the coming weeks and months.”
However, the costs associated with importing goods from China for Amazon may rise in the near future. Recently, the Biden administration announced measures aiming to reduce U.S. economic dependency on China, which may lead to higher prices for American consumers who have turned to platforms like Shein and Temu. Furthermore, President-elect Donald Trump has suggested the implementation of a substantial 60% tariff on goods imported from China.
In addition to the launch of Amazon Haul, the company made other announcements this week. Amazon confirmed it would be discontinuing Freevee, its ad-supported streaming service, and will be merging its content with Prime Video, which has now incorporated advertisements for members who opt not to pay for an ad-free experience.
The Seattle-based company revealed plans to phase out Freevee over the coming weeks, aiming to provide a more streamlined viewing experience for customers. Prime Video will prominently display “Watch for Free” labels on all Freevee content, allowing both Prime and non-Prime members to quickly identify what’s available without charge, according to the company.
“There will be no changes to the content available for Prime members, and a broad selection of free streaming options will still be available for non-Prime members,” an Amazon representative stated.