Amazon launches discount store Amazon Haul to compete with Shein, Temu

Amazon has launched a low price online storefront with electronics, apparel and other products priced under $20, an effort to compete with discount retailers that have increasingly encroached on the e-commerce giant’s turf.

In a blog post Wednesday, the company said the new Amazon Haul storefront will mostly feature products that cost less than $10 and offer free shipping on orders over $25. Amazon plans to ship the products to U.S. customers from a warehouse it operates in China, according to documentation the company provided to sellers. Amazon said Haul orders could arrive within one to two weeks.

Many of the products available at the storefront Wednesday resembled the types of items typically found at Shein and Temuthe China-founded e-commerce platforms that have grown in popularity in recent years.

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

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

Amazon’s new storefront, which is only available on its shopping app and mobile website, features unbranded products such as a phone case and hairbrush that cost $2.99 ​​and a sleeveless dress that sells for $14.99. The company seeks to drive home its value message with banners on its site advertising “crazy low prices” and activewear “that won’t stretch your budget.”

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

It is certain that importing goods from China may soon become more expensive for Amazon. In September, the Biden administration said it was knocks down on cheap products sold out of China, a move designed to reduce U.S. dependence on Beijing but could also trigger higher prices for the American consumers who have flocked to Shein and Temu. President-elect Donald Trump has also proposed one 60% duty on goods from China.

Amazon announced other news this week.

The company said it was shutting down its free, ad-supported streaming service Freevee and consolidating its content under Prime Video, which now also contains ads for Prime members who refuse to pay extra to avoid them.

The Seattle-based technology company confirmed Wednesday that it will phase out Freevee in the coming weeks, a move it says is intended to “deliver a simpler viewing experience for customers.” All Freevee content currently streaming on Prime Video will be labeled “Watch Free” so both Prime and non-Prime members can easily see what’s available for free, the company said.

“There will be no change to the content available to Prime members, and a large selection of free streaming content will still be available to non-Prime members,” an Amazon spokesperson said in a statement.