Amazon’s New Low-Cost Storefront
In a strategic move to rival fast-fashion and low-cost e-commerce platforms such as Shein, Temu, and TikTok Shop, Amazon has introduced its latest offering: the “Amazon Haul” digital storefront. Launched on Wednesday morning, Amazon Haul is designed to attract budget-conscious shoppers by offering various goods at competitive prices. Available exclusively through Amazon’s mobile app or mobile browsers, the platform features a selection of home essentials, clothing, and electronics, with most items priced under $10 and none exceeding $20.
While Amazon is renowned for its rapid delivery services, particularly through Amazon Prime, the company has opted for a different approach with Amazon Haul. Unlike traditional Prime deliveries, items purchased via Amazon Haul are shipped directly from Chinese warehouses, leading to longer delivery times of one to two weeks. This shipping model closely mirrors the practices of Shein and Temu, which also rely on shipments from China. Amazon assures customers that all products on the Haul platform are screened to ensure safety, authenticity, and regulatory compliance.
Return Policies and Free Delivery Thresholds
One notable aspect of Amazon Haul is its return policy and delivery conditions. Items priced below $3 are non-returnable, aligning with the platform’s low cost and minimizing logistical expenses. However, purchases over $25 qualify for free shipping, making it an attractive option for buyers looking to maximize savings. This model reflects Amazon’s adaptation to the competitive landscape, as TikTok Shop has similarly targeted budget-focused consumers since its launch in September 2023.
TikTok’s shopping venture aimed for significant growth, with a projected merchandise value of $17.5 billion in 2024. Despite its ambition, TikTok Shop faced criticism over product authenticity, prompting warnings from the Better Business Bureau about potential scams and unauthorized products, including counterfeit health items. The issue of product legitimacy remains a challenge across such low-cost platforms, underscoring Amazon’s emphasis on its thorough product vetting process.
Competitive Pressure and Criticism of Rivals
Amazon’s pivot to compete directly with Shein and Temu reflects the shifting dynamics within the e-commerce industry. According to The Wall Street Journal, Amazon began to perceive these platforms as formidable rivals earlier this year, citing concerns over user base growth. Temu, which entered the U.S. market in September 2022, rapidly grew to 51.4 million monthly users, impacting Amazon’s U.S. figures, which reportedly fell from 69.6 million to 67 million. Despite these reports, Amazon has denied any decline in its user base.
Shein and Temu have not been without controversy. In addition to facing scrutiny for allegedly low product quality, both have come under fire for ethical concerns related to their supply chains. In 2023, a congressional investigation revealed a high risk of forced labor within Temu’s supply chain. Meanwhile, Shein has been pressured to demonstrate that its products do not involve forced labor, following reports that some items were linked to the Xinjiang region of China, where allegations of forced labor involving the Uyghur population have been raised.
