Amazon debuts Amazon Haul with “crazy low prices.” Here’s what you need to know.

Amazon on Wednesday launched a new online shopping service called Amazon Haul, which experts said could help the e-commerce giant compete with Chinese retailers Temu and Shein.

Amazon Haul — whose name is a play on social media “hauls,” where people show off their purchases — focuses on selling items for $20 or less, or what Amazon calls “crazy low prices.” In a blog postAmazon said the new service is available in its shopping app and mobile website.

Temu and Shein have it won over many Gen Z shoppers and other bargain hunters by offering cheap clothing, electronics, and other items typically shipped directly from manufacturers in China. At the same time, US consumers are still feeling the bite of inflation that hit a 40-year high during the pandemic, with many looking for deals as a result.

“Amazon Haul is a response to both the rise of low-price Chinese marketplaces and the fact that consumers are increasingly looking for value for money as they try to stretch their budgets further,” said Neil Saunders, CEO for the market research firm GlobalData.

He added: “The value retail segment has been a major growth area over the past few years and while the mainstream Amazon site has a reputation for value for money, its broad range means it is not primarily seen as an everyday low-price destination. “

What is Amazon Haul?

Amazon Haul is an online storefront within the Amazon app that sells low-cost goods, especially targeting consumers who shop at discount retailers such as Temu and Shein.

To find Amazon Haul, go to the Amazon app and search for “Haul” in the search bar, or go to www.amazon.com/haul on your browser.

How much do Amazon Haul items cost?

Amazon said everything on Amazon Haul costs less than $20, but most products are priced at $10 and under.

Items available on Amazon Haul Wednesday included a three-pack of fuzzy socks for $4.99 and a quilted tote bag for $7.99. The items ranged from clothing to household items such as silicone baking mats and pillowcases.

The company offers discounts on larger orders, such as 5% off orders over $50 and 10% off orders of $75 or more.

What is the delivery time for Amazon Haul items?

Longer than regular Amazon items, with the company noting that items are typically delivered within one to two weeks.

What do the experts say?

Amazon Haul could help the retailer appeal to younger shoppers, noted GlobalData’s Saunders. But it also raises the risk that the discount shopping site could cannibalize sales from Amazon’s main site, he added.

Still, Saunders said, “It’s better for Amazon to cannibalize its own sales than cede ground to rivals.”