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Amazon is launching an online discount store to better compete with Shein and Temu
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Amazon is launching an online discount store to better compete with Shein and Temu

Amazon (AMZN) has launched a low-cost online store offering electronics, clothing and other products for under $20, an effort to compete with discount retailers that have increasingly entered the e-commerce giant’s territory.

In a blog post on Wednesday, the company said the new Amazon Haul store will primarily carry products costing less than $10 and offer free shipping on orders over $25. Amazon plans to ship the products to U.S. customers from a warehouse in China, according to documentation the company provided to sellers. Amazon said Haul orders could arrive in one to two weeks.

Many of the available products for sale in the store Wednesday resembled the types of items typically found on Shein and Temu, the Chinese-founded e-commerce platforms that have grown in popularity in recent years.

Shein’s main customers are young women who are seduced by the cheap clothes sold on the site. Temu offers clothing, accessories, kitchen gadgets and a wide range of other products for bargain hunters.

Temu and Shein are often criticized for the environmental impact of the ultra-fast fashion business model the two companies follow. They have also faced criticism from lawmakers and regulators in the US and abroad over other issues, including some products on their platforms.

Amazon’s new storefront, which is only available through the shopping app and mobile website, includes unbranded products such as a phone case and hairbrush that cost $2.99, and a sleeveless dress that retails for $14.99. The company is trying to get its message across about value, with banners on the page advertising “outrageously low prices” and sportswear “that won’t break your budget.”

“Finding great products at ultra-low prices is important to customers, and we continue to look for ways we can work with our retail partners to offer products at ultra-low prices,” said Dharmesh Mehta, vice president of Worldwide Amazon Selling Partner Services. , said a statement. “It’s just the beginning of this experience, and we will continue to listen to customers as we refine and expand it in the coming weeks and months.”

It’s fair to say that importing goods from China could soon become more expensive for Amazon. In September, the Biden administration said it was cracking down on cheap products sold from China, a move intended to reduce U.S. dependence on Beijing but could also lead to higher prices for U.S. consumers flocking to Shein and Temu are drawn. President-elect Donald Trump has also proposed a 60% tariff on goods from China.