Amazon has launched a low-cost online store offering electronics, clothing and other products priced under $20, in an effort to compete with discount retailers that have increasingly encroached on the e-commerce giant’s territory.
In a blog post on Wednesday, the company said the new Amazon Haul store would primarily feature products that would cost less than $10 and would offer free delivery on orders over $25. Amazon plans to ship the products to U.S. customers from a warehouse it operates in China, according to documentation the company provided to sellers. Amazon said Haul orders could arrive in one to two weeks.
Many of the products available in the store on Wednesday resembled the types of items typically found on Shein and Temu, the Chinese-founded e-commerce platforms that have gained popularity in recent years.
Shein’s main customers are young women attracted to the low-cost clothing sold on the site. Temu offers clothing, accessories, kitchenware and a wide range of other products for bargain-hungry shoppers.
Temu and Shein have received criticism for the environmental impact of the ultra-fast fashion business model followed by the two companies. They have also faced scrutiny from lawmakers and regulators in the U.S. and abroad over other issues, including some of their platform products.
after newsletter promotion
Amazon’s new store, which is only available on its shopping app and mobile website, features unbranded products such as a phone case and hairbrush that cost $2.99, and a sleeveless dress that costs $2.99. sells for $14.99. The company is trying to get its message across about value, with banners on its page advertising “unbelievably low prices” and activewear “that won’t break your budget.”
“Finding great products at ultra-low prices is important to customers, and we continue to explore ways we can work with our sales partners so they can offer products at ultra-low prices,” said Dharmesh Mehta, vice president of worldwide sales partners at Amazon. . services, he said in a statement. “We are still in the early days of this experience and will continue to listen to customers as we refine and expand it in the coming weeks and months.”
Importing products from China could soon become more expensive for Amazon. In September, the Biden administration said it was cracking down on cheap goods sold outside China, a move designed to reduce America’s dependence on Beijing but could also lead to higher prices for American consumers who have flocked in mass to Shein and Temu.
President-elect Donald Trump also proposed a 60% tariff on products from China.