Amazon has introduced a new shopping platform called Haul, aiming to rival popular low-cost retailers like Temu and Shein. Haul is a mobile-only outlet that is part of Amazon’s Shopping app, available to US customers. The main selling point of Haul is its incredibly low prices, with a cap of $20 (£15.79) for most products. Shoppers can expect “crazy low prices” on items, though delivery may take up to two weeks.
What is Amazon Haul?
Haul marks Amazon’s entry into the low-cost, delayed shipping market that has helped brands like Temu and Shein grow quickly. Most items on Haul cost under $10 (£7.90), with some products, like a three-piece razor set and a necklace, bracelet, and earring set, priced at just a few dollars each. While delivery is free on orders over $25, it could take between one to two weeks for customers to receive their items.
This move comes as Temu and Shein, two Chinese e-commerce companies, have gained popularity in the US. However, these companies have faced criticism for their environmental impact and low-quality goods. Amazon’s new platform seems to be facing similar challenges, according to retail analyst Sucharita Kodali from Forrester, who pointed out concerns about waste and low-quality products.
Why is Haul Important for Amazon?
Haul represents Amazon’s effort to offer budget-friendly products while still ensuring a trusted shopping experience. Unlike other low-cost platforms, Amazon is making sure that all products on Haul are backed by its product guarantees, giving customers peace of mind about safety and quality.
Dharmesh Mehta, Amazon’s Vice President of Worldwide Selling Partner Services, mentioned that Amazon is continuously looking for ways to help sellers offer products at ultra-low prices. He also stated that Haul is still in its early stages and that Amazon will gather customer feedback to refine and improve the service in the future.
What Challenges Could Haul Face?
While Haul’s low prices and wide product range may attract customers, it also faces risks. Consumers may eventually grow tired of poor-quality goods and long shipping times. Retail expert Kodali suggests that if the products fail to meet customers’ expectations and Amazon struggles to make a profit from Haul, it might not last long.
In addition, global regulators are becoming more cautious about the growth of platforms selling mass-produced products at very low prices. In October, the European Commission took action against Temu over concerns about illegal products being sold on its platform.
At this stage, Amazon has not confirmed whether Haul will expand to other markets like the UK. The BBC has asked Amazon about plans, but there has been no official response yet.
Despite the challenges, Haul is Amazon’s bold attempt to cater to budget-conscious shoppers looking for low-cost products and a flexible shopping experience. Whether it will succeed in the long term will depend on how well it can meet customer expectations and balance affordability with quality.