Amazon is making a play for budget-conscious U.S. consumers with the debut of Amazon Haul, its new ecommerce storefront focused on ultra-low prices.

Launched in beta on Nov. 13, the marketplace is Amazon’s biggest effort yet to take on rising discount giants like Temu and Shein, as shoppers continue to feel the pinch of inflation. Prices are capped at $20, with most items under $10 and some priced as low as $1. The storefront keeps prices low by sourcing most products directly from Chinese sellers. Shipping times typically range from one to two weeks, according to Amazon.

Amazon ranks No. 1 in Digital Commerce 360’s Top 1000 Database, which tracks the largest online retailers in North America by annual web sales. Amazon is also No. 3 in Digital Commerce 360’s Global Online Marketplaces Database. The database ranks the 100 largest global marketplaces by third-party gross merchandise value (GMV).

Where Amazon Haul is available

“Finding great products at very low prices is important to customers, and we continue to explore ways that we can work with our selling partners so they can offer products at ultra-low prices,” Dharmesh Mehta, Amazon’s vice president of worldwide selling partner services, wrote in a blog post announcing the launch.

For now, the storefront is exclusive to U.S. shoppers on mobile, where Amazon said most bargain hunters tend to shop. The company plans to “refine and expand” Haul based on feedback. However, it hasn’t shared any future expansion plans to other markets.

Design and logistics cater to value shoppers

Available exclusively through Amazon’s mobile app and web browser, Amazon said Haul offers a range of budget-friendly items. Categories include fashion, home goods and electronics. To access the storefront, U.S. shoppers can search for “Haul” on the Amazon Shopping app, navigate from the main menu or visit www.amazon.com/haul on a mobile browser.

The storefront adopts a grid-style design similar to Temu and Shein, focusing on affordability. Banners advertise “crazy low prices,” with examples such as winter gloves for $3.21. Other examples include an iPhone case for $1.79 and a two-pack of grilling tongs for $4.99.

Orders over $25 qualify for free shipping, while smaller orders incur a $3.99 fee, according to the company. To encourage bulk purchases, Amazon is also offering stacking discounts of 5% off orders over $50 and 10% off orders exceeding $75.

To build consumer trust, Amazon said all Haul items are screened for safety, authenticity, and compliance with regulations. Purchases are backed by Amazon’s A-to-Z Guarantee. That policy offers protection for customers by covering issues such as damaged, defective, or misrepresented items, it said.

Additionally, Haul provides free returns for items priced above $3 within a 15-day window. Customers can return products through over 8,000 drop-off locations nationwide, including Amazon Lockers, Whole Foods, UPS, and Staples.

Competition heats up as rivals face regulatory scrutiny

While Amazon stresses safety and compliance for Haul products, its competitors Temu and Shein are grappling with regulatory challenges in Europe and the U.S.

Temu, owned by China-based ecommerce platform Pinduoduo Inc., is under investigation by the European Commission for allegedly failing to prevent the sale of illegal products. Temu, which now serves around 92 million users in the EU, has stated it will cooperate fully with regulators.

Shein, which reported 68% sales growth in Europe in 2023, is now being investigated by Italy’s Competition Authority for alleged “greenwashing,” or misleading consumers about its environmental practices.

In the U.S., proposed changes by the Biden administration could impose tariffs on low-value shipments under $800, targeting platforms like Temu and Shein. Critics argue that these companies leveraged the “de minimis” exemption to avoid import taxes. The administration argues the loophole has been exploited, giving the companies an unfair advantage.

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