Amazon Launches ‘Haul’ to Compete with Budget Retail Giants Temu and Shein
Amazon has unveiled a new shopping outlet called Haul, offering products priced at $20 (£15.79) or less, in a bid to rival low-cost retailers Temu and Shein. The service, available exclusively through Amazon’s Shopping app in the U.S., promises “crazy low prices” with delivery times of up to two weeks.
Haul: A Shift in Strategy
Haul marks Amazon’s entry into the budget shopping arena, where longer shipping times and ultra-low prices dominate—a model popularized by its Chinese competitors. Products are capped at $20, with many priced below $10 (£7.90), including items like a three-piece razor set or a jewelry set for under $3. Orders over $25 qualify for free delivery within one to two weeks.
Dharmesh Mehta, Amazon’s vice president of worldwide selling partner services, emphasized the importance of affordability:
“Finding great products at very low prices is important to customers, and we continue to explore ways to work with selling partners to offer products at ultra-low prices.”
The beta launch ensures Haul products are backed by Amazon’s product guarantees, aiming to provide customers with confidence about safety and quality. Mehta noted that customer feedback would guide the platform’s development in the coming months.
Facing the Competition
Temu and Shein have surged in popularity, but not without controversy. Critics argue their low-cost, high-volume model is environmentally unsustainable and exploits regulatory loopholes. Forrester retail analyst Sucharita Kodali pointed out:
“Temu and Shein have faced backlash both for taking advantage of import loopholes and for being wasteful and environmentally irresponsible. This effort [Amazon Haul] seems to have the same challenges.”
Amazon’s new venture could face similar scrutiny, especially as regulators globally grow wary of platforms selling cheap, mass-produced goods. For instance, the European Commission recently initiated action against Temu for failing to prevent the sale of illegal products.
Challenges and Risks
While Haul seeks to capitalize on demand for affordable products, Kodali warns of risks to Amazon’s reputation and profitability:
“There is evidence consumers are growing tired of poor-quality goods and slow shipping. If the products underwhelm shoppers and are unprofitable for Amazon, I don’t expect Haul to be long for the world.”
Aiming for Affordability Amid Growing Concerns
As Amazon joins the low-cost retail race, it faces a delicate balance—meeting customer expectations for affordability while addressing concerns over quality, sustainability, and shipping delays. Whether Haul can carve out a lasting niche in this competitive space remains to be seen.
