Amazon has introduced a new shopping platform called Haul, where all products are priced at a maximum of $20 (or £15.79). This move is aimed at competing with budget retailers like Temu and Shein, known for their low-cost products.
Amazon has launched Haul as a mobile-only feature, meaning it can only be accessed through the Amazon Shopping app. This new shopping experience is currently available exclusively for customers in the United States and was introduced on a Wednesday.
Amazon claims that Haul offers extremely low prices, describing them as “crazy low.” However, customers should be prepared for longer delivery times, with shipments potentially taking up to two weeks to arrive. Despite the wait, Amazon suggests that the value of the low-priced products makes it worthwhile.
In recent years, Amazon’s Chinese competitors in the e-commerce space have seen significant growth due to their popularity in selling inexpensive products. However, these companies have also been criticized for the environmental consequences of producing and transporting a large volume of cheap goods, which can contribute to pollution and waste.
According to Forrester retail analyst Sucharita Kodali, both Temu and Shein have been criticized for exploiting import loopholes, which may allow them to avoid certain regulations or taxes. Additionally, they have faced backlash for practices considered wasteful and environmentally harmful, contributing to concerns over their sustainability and impact on the environment.
The analyst suggests that Amazon’s Haul initiative faces similar challenges to those encountered by Temu and Shein, particularly in terms of environmental concerns and import practices. Haul represents Amazon’s attempt to enter the market for low-cost items that require longer shipping times, a strategy that has contributed to the success of competitors like Temu and Shein.
Regulators globally are becoming increasingly cautious about platforms that sell large quantities of mass-produced goods at extremely low prices, due to potential economic and environmental impacts. In October, the European Commission took action specifically against Temu, raising concerns that the platform is not effectively preventing the sale of illegal or non-compliant products.
Amazon’s Haul platform has a price limit of $20, with most items costing under $10 (about £7.90). Examples given in the launch announcement include a three-piece razor set and a jewelry set (necklace, bracelet, and earrings), each priced at just under $3. Additionally, Haul offers free shipping on orders of $25 or more, with an expected delivery time of one to two weeks.
Dharmesh Mehta, Amazon’s Vice President of Worldwide Selling Partner Services, emphasized that customers highly value finding quality products at low prices. To meet this demand, Amazon is exploring partnerships with sellers that enable them to provide items at extremely affordable prices, making budget-friendly shopping a key priority for the company.
Amazon describes the Haul shopping experience as a “beta” version, meaning it’s still in the early stages of development. All products sold on Haul are backed by Amazon’s product guarantees, ensuring their quality and safety. Dharmesh Mehta stated that since the platform is new, they will pay close attention to customer feedback in order to improve and expand Haul in the coming weeks and months.
The BBC has inquired with Amazon about the potential launch of the Haul service in the UK, but no details have been provided yet.
Sucharita Kodali, the retail analyst, warned that the Haul project carries risks for Amazon. She pointed out that consumers may be becoming frustrated with low-quality products and slow shipping times, which are common complaints about budget retailers. If Haul’s products fail to meet customer expectations or if the platform proves unprofitable for Amazon, Kodali believes that Haul may not last long.
