Amazon has launched a low-cost ecommerce service called Amazon Haul in the United States. This new service will be offering a selection of products at $20 or less, with the objective of competing against Temu and Shein.
According to Reuters, Amazon CEO Andy Jassy stated that the average selling prices were falling as customers were trading down to cheaper items and buying more essential goods.
Temu offers clothing, accessories, kitchen gadgets and a broad array of other products at an ultracheap prices for the bargain-hungry shoppers. Shein has also become the top fashion shopping spot for young women with their low-cost apparels.
The Chinese e-Commerce platform, Temu and Shein have received criticism over the environmental impact of the ultra-fast fashion business model the two companies follow. They have also faced scrutiny from lawmakers and regulators in the US and abroad over other issues.
The Amazon Haul will be available for customers when they update their Amazon shopping app. Users could search for “Haul” within the Amazon shopping app for the new low-cost service.
The new Amazon Haul storefront would mostly feature products that cost less than $10 and offer free delivery on orders over $25.
Amazon plans to ship the products to US customers from a warehouse it operates in China, according to documentation the company provided to sellers. Amazon claimed that Haul orders could arrive within one to two weeks.
Read more on Amazon Haul here.