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Amazon takes on Temu and Shein with discount store ‘Amazon Haul’
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Amazon takes on Temu and Shein with discount store ‘Amazon Haul’

Amazon has rolled out its answer to Temu and Shein’s competitively priced, low-cost storefronts. The Amazon Haul store, currently available exclusively through the mobile app or mobile web browser, offers similar discounted mass-produced items, most of which ship from China. It’s a departure from Amazon’s long-standing reputation as a powerhouse in fast delivery times, as even Amazon can’t shorten the time it takes to receive these overseas goods.

The landing page for Amazon Haul is even reminiscent of Shein and Temu in design: items appear in grids, rather than Amazon’s typical listing, and shipping times and star ratings aren’t visible unless you click on an item. Some items feature rocket emojis warning that this $4.99 iPhone 16 Pro case is “selling fast!” Or maybe you see a fire emoji declaring that the price for a $2.89 pack of three laundry bags is “crazy low.” Like its competitors, Amazon Haul also sells clothing ($16 for men’s golf pants, or $4.99 for women’s ’80s leg warmers). In the ‘staples’ section you will find an assortment of… sponges, resistance bands, hoodies, silicone baking mats and socks.

Image credits:Amazon, screenshots by TechCrunch

“As Amazon continues to offer more than 300 million items with fast, free delivery for Prime members (…) we’re also hearing from customers that they sometimes like to buy ultra-low-priced products, even though some of them take one to two weeks to arrive. sold. arrive,” Amazon wrote in a blog post.

Temu and Shein have been widely criticized for their environmental impact, a byproduct of their global shipping and the waste caused by fast fashion. Both companies are also subject to consumer protection investigations in the European Union, where regulators are investigating their potential use of addictive design patterns and illegal products.

Despite the controversy surrounding them, these low-cost retailers remain incredibly popular among Generation Z. According to research from app intelligence firm Appfigures, Temu was the most popular app among US users aged 18 to 24, with nearly 42 million downloads in that 18-year-old demographic. and 24 years. January and October 2024. For Shein, that estimate is about 14.7 million downloads, although it’s possible the difference in download numbers is so large because Gen Z users have already downloaded Shein, which has been around longer than Temu.

One risk for Shein and Temu is that consumers may not feel comfortable making purchases from unknown sellers who may be misleading; Consumers have more trust in Amazon, but the company partners with similar, largely China-based sellers of mass-produced goods. However, Amazon claims that it screens sellers in advance, and if customers want to return their purchase, they can do so for free within 15 days, as long as the item costs more than $3.

It is a questionable time for Amazon to invest in this business model, as newly elected President Donald Trump has proposed imposing a 60% tax on imported Chinese goods. However, this pricing plan is not set in stone; it is common for politicians to change their campaign platforms after achieving a victory.

However, the popularity of Chinese e-commerce shipments has attracted the attention of both parties. The Biden administration has already proposed congressional action to crack down on what it calls “significantly increased abuse” by Chinese e-commerce companies of the “de minimis” exception. The de minimis exemption allows shipments worth less than $800 to enter the US duty-free, allowing retailers like Temu and Shein to maintain such low margins.