Amazon launches Temu and Shein rival with ‘insanely low’ prices

On By Littum

Amazon has launched a new business called Haul, which caps the price of products for sale at $20 (£15.79), in a bid to take on discounters Temu and Shein.

The online shopping giant unveiled Haul as a mobile-only experience available in its Shopping app for US customers on Wednesday.

It says customers can expect “crazy low prices” on Haul products that are “worth the wait” of up to two weeks for delivery.

It marks the platform’s long-awaited foray into selling cheaper items with longer delivery times – a business model that has spurred the rise of Chinese-owned e-commerce apps.

Bloomberg journalist Amanda Mull told the BBC in July that positioning itself as a competitor to Temu would be a short-term priority for Amazon.

She said Amazon has “created the spending habits of Western consumers” by acting as a credible intermediary between them and manufacturers.

But shifting away from its quick delivery and returns options to replicate the practices of increasingly popular Temu and Shein apps would allow them to follow in their footsteps by lowering prices, she said.

Amazon has said that most of the products on the Haul will cost less than $10 (£7.90).

It cited examples such as a three-piece razor set and an “elegant necklace, bracelet and earring set” available for just under three dollars each. a press release about the launch.

Free shipping will also be available on orders of $25 or more with one to two week delivery.

But the mass production of cheap products has been criticized due to concerns about the impact of their shipping and disposal on the environment.

“Finding great products at very low prices is important to customers, and we continue to explore ways to work with our sales partners to offer products at ultra-low prices,” said Dharmesh Mehta, Amazon’s vice president of worldwide sales partners. services.

The company says the “beta” Haul shopping experience will see all products sold backed by its product warranties to give confidence in their safety.

Mr. Mehta said it was still “early days” for its new shopping vertical and customer feedback would be listened to to “refine and expand it in the coming weeks and months”.

The BBC has asked Amazon if and when the service will launch in the UK.