Amazon launches budget storefront to rival Shein and Temu

Amazon has unveiled “Amazon Haul,” a new budget-focused storefront within its mobile app and website, aimed at competing with fast-growing Chinese retailers Shein and Temu, the company announced today.

The new platform features products primarily priced under $20, with many items available for less than $10, spanning categories from apparel to electronics and home goods. Products ship directly from Chinese warehouses, with delivery times extending one to two weeks beyond Amazon’s standard shipping options.

The launch comes as Amazon faces mounting competition from Temu and Shein in the low-cost retail space. Temu, owned by PDD Holdings, has attracted over 51 million monthly users since its 2022 US debut, while Shein reported $22 billion in sales last year, according to The New York Times.

Safety and compliance focus

Amazon aims to differentiate its offering through enhanced product safety measures and regulatory compliance, backed by its “A-to-z Guarantee”. The company says all items are screened to meet safety regulations, addressing concerns about quality issues often associated with fast-fashion retailers.

“We’re ensuring all products meet our strict safety standards while maintaining competitive pricing,” an Amazon spokesperson said. The platform offers additional incentives including bulk purchase discounts and free delivery on orders exceeding $25.

Market strategy

The rise of Temu and Shein has been particularly notable among younger consumers seeking affordable merchandise across various categories. Both companies have gained significant market share through aggressive pricing strategies and extensive product ranges.

Amazon Haul is currently operating in beta phase exclusively in the United States. The company indicated it plans to refine the platform based on customer feedback, marking a strategic shift towards capturing more budget-conscious online shoppers.