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Amazon Haul takes on Temu, TikTok and Shein with ultra-low prices
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Amazon Haul takes on Temu, TikTok and Shein with ultra-low prices

Amazon has finally introduced its rival to Temu, the online retailer known for its deeply discounted merchandise.

Amazon’s new digital store, which launched Wednesday, is called “Haul” and features items under $20, such as $1.29 earrings and $7.99 women’s leggings. It offers additional discounts for orders over $50 and $75, as well as free shipping on purchases of $25 or more, although delivery can take a week or more.

Amazon Haul does not appear to offer any special benefits to members of Prime, Amazon’s popular shipping and entertainment membership program.

The new section, labeled as being in “Beta” or testing phase, is currently only available through Amazon’s mobile website and app. It offers merchandise including fashion, accessories, home, beauty and electronics.

In a departure from the rest of the Everything Store, the new store makes liberal use of emojis, neon colors and sections such as ‘Social Favorites’ and ‘Crazy Low’. It also sends on-screen notifications to shoppers in an attempt to increase their order size, such as ‘Don’t stop now! Add $10.04 for 5% off.”

Temu, along with TikTok’s Shop marketplace and fast-fashion giant Shein, are using similar mechanisms to encourage shoppers to spend more and complete their purchases quickly. Overall, Amazon Haul’s effort seems focused on attracting younger buyers who want to have fun browsing and looking for bargains.

Amazon has long excelled at providing an efficient, convenient shopping experience with the intention of purchasing a specific type of product or brand. But it has struggled in recent years to develop a similar winning strategy to inspire shoppers interested in the online equivalent of window shopping or impulse treasure hunting.

This latest effort is no doubt inspired by the frenetic rise of Temu, the ultra-popular shopping app that launched in the US just two years ago and is already among the top shopping apps in the world, generating billions in annual revenue. Fast-fashion online giant Shein and TikTok’s fast-growing Shop marketplace are also firmly on the radar of Amazon executives, as these new rivals gobble up market share in the discount retail sector.

The news that Amazon is courting sellers in China for the low-price initiative was first reported months ago by Jianlong Hu, who writes a newsletter for Chinese online sellers who sell internationally.

Although Temu has marketed itself as a Boston-based company, the company has few U.S. employees and is owned by Chinese e-commerce giant PDD, which is worth $150 billion. an uncertain future. Temu and other companies that ship goods from overseas warehouses directly to U.S. customers have taken advantage of the long-standing “de minimis” trade rule that lets most of their orders bypass tariffs, making it easier for them to offer bargain prices .

But Temu has been trying to expand its warehousing of products in the U.S. to improve shipping speeds and prepare for a change in the de minimis rule, which has been attacked by U.S. politicians on both sides of the aisle. It’s unclear whether customer orders for Amazon Haul currently also benefit from the same trade rule.

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