Amazon Haul discount storefront debuts with Temu and Shein

Amazon has rolled out a new storefront featuring clothing, homewares, electronics and other items priced under $20, to fend off growing competition from discount upstarts Temu and Shein.

Dubbed “Amazon Haul,” the storefront is accessible via the company’s mobile app and promises “insanely low prices” on a host of items. Shoppers can buy eyelash curlers and oven mitts for $1 or a nail dryer for $3. The company offers free shipping on orders over $25 or a $3.99 shipping fee on orders below that threshold.

An Amazon spokesperson pointed out a company’s blog post announces the storefront. The company noted that it screens the products offered through Haul to ensure they are safe, authentic and comply with regulatory requirements.

“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, 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.”

CNBC previously reported that Amazon planned to launch its own discount online store with goods shipped directly from China.

Amazon is betting that shoppers will wait longer for products in exchange for rock-bottom prices. The company noted that most purchases made in Amazon Haul will be delivered in under two weeks, “although shipping times may vary and are dependent on a customer’s delivery location.”

It’s a shift for Amazon, which has cemented its e-commerce dominance in part by offering faster delivery speeds than its competitors. The company rocked the online shopping world when it first offered free two-day shipping, and it’s been speeding up delivery times ever since. Amazon now offers same-day or next-day delivery, and in some parts of the US it promises delivery within a few hours of an order being placed.

With Amazon Haul, the company is responding to the rise of Temu, Shein and TikTok Shop, all of which have ties to China, the world’s second-largest economy. The platforms have quickly gained popularity in the US over the past few years, capturing bargain-hungry shoppers with their low prices on clothing, makeup, home goods and other items.

Amazon is able to offer low prices through its Haul storefront by importing each item directly from manufacturers in China, similar to how Temu’s and Shein’s business models work. To control costs, the company says it will not accept returns on items that are $3 or less.