November 14, 2024 – 12:45 p.mReading time: 1 Min.
Amazon has launched its own cheap shop. With Haul, the US company wants to curb the rapidly growing competition from China.
Online giant Amazon has launched a new online store in the US called Haul, offering products such as clothing, home goods and electronics at low prices. With this offer, the company wants to compete with the growing Chinese platforms Temu and Shein. The products in the Haul Shop are all under $20 – many even under $10.
The new service is initially only available via the Amazon app in the USA. As the company announced in a press release, customers can expect delivery times of one to two weeks. For orders under $25, Amazon charges a shipping fee of $3.99 – similar to the competition.
In order to motivate customers to buy larger quantities, Amazon has also introduced a discount system. There is a five percent discount for purchases of $50 or more, and even ten percent for purchases of $75 or more.
Unlike its competitors, Amazon promises to check all products for safety and authenticity. Dharmesh Mehta, vice president of global selling partner services at Amazon, emphasizes: “Customers can trust that the products are safe and authentic.”
All items over three dollars have a 15-day return policy and can be returned free of charge. In addition, all products are subject to the usual Amazon guarantee.
Although the new offer is currently only available in the USA, Amazon emphasizes that it will listen to customer feedback before further expansion plans are finalized. Whether and when Haul will also come to Germany remains to be seen.
How will Amazon’s Haul store impact competitors like Temu and Shein in the budget e-commerce market?
Interview: Time.news Editor Meets Market Expert on Amazon’s New Haul Store
Time.news Editor (TNE): Welcome to Time.news! Today, we have with us Dr. Emily Chen, a leading expert in e-commerce and market trends. We’re here to discuss Amazon’s recent launch of its new budget store, Haul, aimed squarely at rivals like Temu and Shein. Dr. Chen, thank you for joining us.
Dr. Emily Chen (EC): Thank you for having me! It’s an exciting time in the e-commerce landscape.
TNE: Absolutely! Amazon’s Haul offers products for $20 and under, which certainly catches one’s attention. Why do you think Amazon felt the need to launch this budget-friendly store now?
EC: Great question! Amazon has always been a strong player in the e-commerce market, but with the rapid growth of platforms like Temu and Shein—especially targeting price-sensitive consumers—they felt the pressure to innovate. Launching Haul seems to be a strategic move to regain market share and cater to budget-conscious shoppers.
TNE: It seems like a bold move, especially given the fierce competition in the low-cost sector. What sets Haul apart from its competitors?
EC: One of the key differentiators for Haul is Amazon’s established logistics and fulfillment network. While Temu and Shein are expanding rapidly, they still face challenges with distribution in certain regions. Amazon can leverage its Prime membership benefits and faster shipping options to enhance the customer experience, making Haul a very appealing option.
TNE: That’s an interesting point. How do you think consumers will react to this new offering, especially in contrast to the existing options from Temu and Shein?
EC: I believe consumers who prioritize quality and convenience over just low prices will find Haul attractive. Additionally, the familiar Amazon brand—which many people trust—could sway some shoppers. However, for others, particularly those who only look for the cheapest options, Temu and Shein may still have the edge, given their current market positioning and wide product range.
TNE: Speaking of product range, we’ve noted that the Haul store includes clothing, home goods, and electronics at low price points. Do you see this as a long-term strategy, or could Amazon pivot if Haul doesn’t perform as expected?
EC: Amazon is known for its adaptability. If Haul doesn’t meet performance expectations, we might see them tweak their offerings, expand the product categories, or even adjust pricing strategies. They are quite data-driven, so they will assess consumer behavior closely and make informed decisions.
TNE: It’s intriguing how adaptive Amazon can be. Do you think this move will lead to a price war in the e-commerce sector?
EC: Definitely. The entry of Haul into this segment likely signals an impending price war, particularly as competitors may feel compelled to lower prices to maintain their market share. This could lead to a broader shift in the industry, where profit margins become tighter as players compete aggressively on price.
TNE: It’s a fascinating prospect. how do you see the future of budget e-commerce evolving over the next few years?
EC: I envision significant growth in this sector, driven by consumer demand for affordable options. Companies will need to innovate continuously, perhaps by enhancing customer experience or improving product quality, to remain competitive. Ultimately, those who can strike the right balance between cost and quality will thrive.
TNE: Thank you, Dr. Chen, for your insights! It appears that Amazon’s Haul is not just a new store but also a pivotal point in the ongoing competition within the e-commerce realm. We’ll certainly be keeping a close eye on its developments.
EC: Thank you! It was a pleasure discussing this with you. The next few months will be quite telling for not just Amazon but the entire e-commerce market.
TNE: Thank you to our readers for joining us for this engaging discussion. Stay tuned for more updates on this exciting market development!