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14 November 2024

Amazon Strikes Back With New Budget-Friendly Store

New low-cost marketplace aims to compete with Temu and Shein, offering products under twenty dollars

Amazon has officially launched its latest venture, dubbed "Amazon Haul," aimed directly at budget-conscious shoppers seeking low-cost alternatives to popular Chinese retail platforms like Temu and Shein. This new service, which is currently available only for mobile users, allows customers to browse and purchase items priced at $20 or less, with most products typically priced under $10.

Unveiled on November 13, 2024, Amazon Haul stands as the company's strategic response to the rise of e-commerce competitors offering steep discounts on products. Targeting U.S. consumers, the shopping experience is integrated within the Amazon Shopping app or can be accessed via mobile browsers. Shoppers can find various categories including clothing, home goods, electronics, and more, all touted as being available at "crazy low prices."

Amazon's decision to launch Haul follows significant growth for Temu and Shein, both of which have gained traction with their low-priced offerings paired with extended shipping times. Temu, which is associated with the Chinese e-commerce giant PDD Holdings, and Shein, another Chinese platform, have established themselves as formidable players by offering inexpensive products shipped directly from China. This model, which emphasizes lower prices over faster delivery, has caught the attention of Amazon as it seeks to reclaim market share among bargain hunters.

"Finding great products at very low prices is important to customers, and we continue to explore ways to work with our selling partners to offer these products at ultra-low prices," stated Dharmesh Mehta, Amazon's vice president of Worldwide Selling Partner Services. He emphasized Amazon's goal of making shopping fun, easy, and affordable, all backed by the company's A-to-Z product guarantee.

Haul is set to provide savings opportunities for shoppers, including items as low as $1.79 for phone cases and jewelry available at just $3. Similar to its competitors, the shipping model follows suit, with delivery times stretching from one to two weeks, significantly longer than the rapid delivery Amazon Prime members are accustomed to. Free shipping is available for orders totaling over $25; otherwise, shipping fees start at $4 for smaller orders.

Despite these cost advantages, the service has not been without criticism. Concerns surrounding the environmental impact of mass-produced, low-cost goods have been vocalised, focusing on shipping and waste generated by these products. These issues have been highlighted particularly due to the heavily criticized labor practices associated with brands like Shein and Temu.

To aid transparency and consumer confidence, Amazon has announced rigorous screening for all products listed on Haul, ensuring they meet safety standards and comply with relevant regulations. Items priced below $3 are not eligible for returns, yet purchases over $3 can be returned for free within 15 days of delivery.

"It's early days for this experience, and we will continue to listen to customer feedback to refine and expand it as we progress," Mehta remarked, indicating the company's commitment to evolve the Haul shopping experience based on customer needs and trends.

The launch of Amazon Haul marks the company's significant foray back to its roots of providing budget-friendly shopping options, reflecting changing consumer habits and the increasing impact of cost-driven competition from global players. With rising inflation and economic pressures compelling consumers to seek out more affordable products, Amazon Haul’s entry could drastically reshape online shopping trends.

For U.S. customers eager to access this new shopping platform, Amazon advises using the app’s search feature to locate Haul or visiting [www.amazon.com/haul](http://www.amazon.com/haul) directly on their mobile devices.

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