Everything is under $20 at Amazon’s newest store

New York
CNN
—

Amazon is taking aim at retail rivals Shein, Temu and TikTok Shop with a new deeply discounted storefront that sells a wide range of products for $20 or less.

Dubbed “Amazon Haul,” the mobile-only experience debuted Wednesday in the Amazon app and features everything from fashion accessories to home goods, plus clothing and electronics.

Haul is Amazon’s answer to Chinese marketplaces, which have seen rapid growth in the U.S. from cost-conscious shoppers looking for cheap products, according to Neil Saunders, managing director of retail at GlobalData.

“The value retail segment has been a big growth area over the past few years, and while Amazon’s main site has a good reputation for value, its broad offering means it’s not seen primarily as an everyday, low-price destination,” he told CNN.

Amazon said in a announcement that a “majority” of Drag items are under $10, with some even less than $1. For example, an iPhone case is on sale for $1.79, a tablecloth for $4.99, and memory foam slippers for $9.99.

However, the cheap prices come with a caveat that items can take one to two weeks to be delivered. And shipping is only free on orders over $25, with an additional $3.99 charge for orders below that threshold. Also, the store only accepts returns on items that are $3 or more.

In what could be seen as a slight dig at its overseas rivals, Amazon said it “screens the products sellers offer in Haul so customers can be confident they will receive products that are safe, authentic and compliant with applicable regulations.”

Shein and Temu have recently been targeted by US regulators in a proposed investigation for selling “lethal baby and toddler products.” Two executives from the Consumer Product Safety Commission will investigate how companies comply with safety regulations.

Amazon said Haul was created because it hears from customers who want “ultra-low-priced products, although some of them take one to two weeks to arrive.”

Saunders said there will be concerns that Haul could cannibalize sales from its flagship site, but it is “better for Amazon to cannibalize its own sales than cede ground to rivals” and the storefront could prove popular with younger consumers , who are avid shoppers of Amazon competitors.