Amazon on Wednesday debuted a new online shopping service called Amazon Haul, which experts say could help the e-commerce giant compete with Chinese retailers Temu and Shein.

Amazon Haul — whose name is a play on social media “hauls,” where people show off their purchases — focuses on selling items for $20 or less, or what Amazon calls “crazy low prices.” In a blog post, Amazon said the new service is available on its shopping app and mobile website.

Temu and Shein do won many Gen Z shoppers and other bargain hunters by offering cheap clothing, electronics and other items typically shipped directly from manufacturers in China. At the same time, U.S. consumers are still feeling the bite of inflation, which reached a 40-year high during the pandemic, prompting many to shop for deals.

“Amazon Haul is a response to both the rise of low-cost Chinese marketplaces and the fact that consumers are increasingly seeking better value for money as they look to stretch their budgets further,” said Neil Saunders, director of market research firm GlobalData.

He added: “The value retail segment has been a key growth area in recent years, and while the mainstream Amazon site is good value for money, its wide range means it is not primarily seen as an everyday low point. -price destination.”

What is Amazon Haul?

Amazon Haul is an online store within the Amazon app that sells low-cost items, primarily aimed at consumers who shop at discount stores such as Temu and Shein.

To find Amazon Haul, go to the Amazon app and search for “Haul” in the search bar, or visit www.amazon.com/haul in your browser.

How much do Amazon Haul items cost?

Amazon said everything on Amazon Haul costs less than $20, but most products cost $10 and under.

Items available on Amazon Haul on Wednesday included a three-pack of fuzzy socks for $4.99 and a quilted tote bag for $7.99. The merchandise ranged from clothing to household items such as silicone baking mats and decorative pillows.

The company offers discounts on larger orders, such as 5% off orders over $50 and 10% off orders over $75 or more.

What is the delivery time for Amazon Haul items?

Longer than regular Amazon items, with the company noting that goods are typically delivered within one to two weeks.

What do the experts say?

Amazon Haul could help the retailer attract younger shoppers, GlobalData’s Saunders noted. But it also poses the risk of the discount shopping site cannibalizing sales from Amazon’s main site, he added.

Still, Saunders said, “It’s better for Amazon to cannibalize its own sales than to cede ground to rivals.”