Amazon debuts budget-friendly marketplace to challenge Temu and Shein’s low-cost model.

Amazon debuts budget-friendly marketplace to challenge Temu and Shein's low-cost model.

Amazon has launched Haul, a new mobile-only shopping experience within its app targeting budget-conscious consumers in the United States. The platform aims to compete directly with low-cost e-commerce rivals Temu and Shein by offering products priced at $20 or less, with most items costing under $10.

The new shopping vertical is designed to provide extremely affordable products with delivery times of one to two weeks. Amazon is positioning Haul as a budget-friendly option, showcasing examples like a three-piece razor set and jewelry sets priced at just under three dollars. Free delivery will be available for orders exceeding $25.

Dharmesh Mehta, Amazon’s vice president of worldwide selling partner services, emphasized the importance of offering low-priced products to customers. The company describes Haul as a “beta” experience that will provide product guarantees and ensure safety, differentiating it from competitors.

However, the launch comes with potential challenges. Forrester retail analyst Sucharita Kodali noted that Temu and Shein have faced significant criticism for environmental irresponsibility and exploiting import loopholes. She suggests Amazon’s Haul might encounter similar issues.

The global retail landscape is increasingly scrutinizing platforms selling mass-produced goods at extremely low prices. The European Commission has already taken action against Temu over concerns about illegal product sales, highlighting the regulatory challenges such platforms face.

Kodali also warned that the success of Haul is not guaranteed. She pointed out emerging consumer fatigue with low-quality goods and slow shipping, suggesting that if the products disappoint customers or prove unprofitable, the platform may not survive long-term.

Amazon appears aware of these potential pitfalls. Mehta described the launch as being in its “early days” and indicated that the company will closely monitor customer feedback to refine and potentially expand the service in the coming months.

The launch of Haul represents Amazon’s strategic response to the growing market for ultra-affordable online shopping. By capping prices and offering budget-friendly options, the company is attempting to capture market share from Chinese e-commerce competitors that have gained significant traction in recent years.

Currently, Haul is exclusively available to US customers through the Amazon Shopping app. The BBC has inquired about potential UK expansion, but no definitive timeline has been announced.

As the e-commerce landscape continues to evolve, Amazon’s Haul could signal a broader shift in online retail strategies, balancing affordability, quality, and consumer expectations in an increasingly competitive market.