Amazon has entered the fray of discount shopping with the launch of its new service, Amazon Haul, which is aimed at undercutting competitors like Shein and Temu by offering low-priced items. The platform, which promises items priced at $20 or less, is positioned to capture the attention of budget-conscious shoppers during the holiday season.
The offerings within Amazon Haul encompass various categories, including fashion, household goods, and electronics. Most of the products are unbranded and come from vetted sellers around the globe, with many items available for as little as $1. Notably, Dharmesh Mehta, Amazon’s vice president of worldwide selling partner services, stated, “Finding great products at very low prices is important to customers.” This sentiment reflects Amazon's strategy to accommodate shoppers seeking affordability.
The new service is exclusively mobile as it can only be accessed through the Amazon app or mobile browser. To entice users to fill their carts, Amazon provides free shipping on orders over $25, and several discounts based on order size—5% off for purchases of $50 or more and 10% off for orders exceeding $75. For those making smaller purchases, there’s a $3.99 delivery fee.
Amazon’s strategic shift can be attributed to recent trends showing substantial growth for discount marketplace platforms such as Temu, which specializes in inexpensive unbranded products, and Shein, known for its fast fashion. Shein, for example, has seen its web traffic consistently increase, drawing around 52.5 million unique visitors as of late 2024, which highlights Amazon’s need to respond competitively. Temu, once booming, now experiences fluctuated traffic amounts, stabilizing around 71.5 million visitors, which is down from over 93 million during its peak.
Industry experts view the launch of Amazon Haul as both a defensive maneuver and an indication of the company’s battle for market share. Sky Canaves, principal analyst at eMarketer, remarked, “While Amazon's dominant position in U.S. e-commerce remains unchallenged, it has undoubtedly lost some share of consumer spending to these newer platforms.” The implication here is clear: Amazon must innovate and adapt to prevent losing footing against these budget-friendly rivals.
Amazon Haul’s selection reflects the company’s insights on consumer behavior, particularly the growing preference for lower-priced everyday items. According to the recent eMarketer data, Amazon's traffic remained stable at around 236.1 million unique visitors as of September 2024. Despite this stability, it indicates potential vulnerabilities as shopper preferences evolve.
The site not only features traditional items but also includes unique bargains, such as three-piece trimmer razor sets for just $2.99 and iPhone cases for $1.79. The depth of these discounts aims to appeal to bargain hunters who relish the thrill of finding deals. This model could be seen as Amazon’s attempt to transform the online shopping experience by allowing users to discover affordable goods with ease.
Returns are made user-friendly on Amazon Haul with free return options for items over $3 within 15 days of purchase. With over 8,000 locations available for easy drop-off, including popular spots like Whole Foods and UPS stores, customers can feel secure about their buying choices.
The launch timeline coincides with the holiday shopping season, during which consumers are particularly focused on deals. With Amazon's renowned logistical capabilities and vast reach, the organization is poised to make significant waves this Black Friday and Cyber Monday. The goal is clear: to regain the attention of shoppers opting for Temu and Shein due to their lower price points and fast delivery options.
This strategic pivot demonstrates Amazon’s recognition of the competitive retail environment and the need for agile responses to shifting consumer behavior. By promoting low-cost products and providing strong delivery and return options, Amazon Haul is set to directly challenge the appeal of discount platforms created by their rivals.
With the holiday shopping season at the door, Amazon Haul isn’t just another storefront; it’s the retail titan’s latest attempt to redefine value and convenience for consumers amid rising cost-of-living pressures. This launch also raises questions about how established players, like Amazon, will continue to evolve their offerings to stay relevant against nimble competitors.
