Amazon Haul: a new store with products under $20
US giant Amazon has decided to compete with popular shopping platforms such as Chinese e-tailers Shein and Temu and has launched a new concept called "Amazon Haul." This mobile store, which focuses on affordable goods under $20, is mainly meant to appeal to customers looking for low prices. The offerings include a wide range of products from fashion to home accessories to electronics.
Amazon Haul was launched this week as part of Amazon's $AMZNapp and brings a diverse range of goods at ultra-low prices to the US market. According to GlobalData's director of retail Neil Saunders, the launch of Haul is in response to the rapid growth of Chinese markets in the US, which is driven by demand for low-cost goods.
"The low-cost retail space has grown significantly in recent years, and while Amazon's homepage has a reputation for being a bargain, its wide range of offerings don't always feel like a typical destination for everyday low-price shopping," Saunders explained.
According to Amazon, most of the products offered on Haul fall into the sub-$10 price tier, with some items even cheaper than $1. Examples include an iPhone cover for $1.79, a tablecloth for $4.99 or memory foam slippers for $9.99.
But cheap prices come with a few limitations. Customers must expect longer delivery times, which can take one to two weeks. In addition, shipping is free for orders over $25, with a $3.99 fee for lower orders. Returns are only available for items over $3.
Amazon also noted in its announcement that products sold on Haul are carefully selected to ensure their safety and compliance. In doing so, Amazon may be alluding to the recent problems of competitors such as Shein and Temu, which the US Consumer Product Safety Commission has proposed to investigate for selling unsafe goods to children.
The reason for creating Amazon Haul, according to Amazon, is feedback from customers who want the cheapest products, even if it means longer delivery times. But Saunders pointed out that Haul could bring new customers to Amazon, especially among young consumers who have traditionally been loyal to Amazon's competitors.
Time will tell whether Amazon Haul will be successful. But it is clear that Amazon does not want to lose market share in the low-cost market and would rather try to gain those customers even at the cost of being able to compete to some extent with its own portal.
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Source: CNN, Yahoo Finance.