• by Sarah Mahoney  @mahoney_sarah, November 13, 2024

It was just a matter of time before Amazon took a swing at Shein and Temu, the Chinese ecommerce sites that have captivated American bargain hunters -- and it looks like the time is now. The ecommerce giant is launching Amazon Haul, offering over 300 million products in 35 categories -- all for less than $20 apiece.

Like other products sold through Amazon, these goods are backed with the A-to-Z Guarantee. Unlike other Amazon purchases, they’ll arrive much more slowly, with delivery times of one to two weeks. While Amazon Prime members get free shipping, that perk won’t apply to Haul. However, shipping is free for Haul orders of more than $25.

Amazon says the Haul experience, available in the shopping app and mobile website, results from close relationships the company has built with independent sellers in the last two decades.

“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,” said Dharmesh Mehta, Amazon’s vice president of worldwide selling partner services, in the announcement. “Amazon Haul aims to help make shopping for fashion, home, lifestyle, electronics, and other products even more fun, easy, and affordable.”

The discount service even looks like Temu, with products sold in a grid rather than Amazon’s familiar format.

A key difference from Chinese competitors is that Amazon says it screens the products sellers offer “so customers can be confident they’ll receive products that are safe, authentic, and compliant with applicable regulations.”

The U.S. Consumer Products and Safety Commission has called for investigations of both Shein and Temu, because of concerns that baby and toddler products don’t meet U.S. safety guidelines. And the European Union recently opened an investigation into Temu for selling illegal products, as well as the “addictive design” of its gamified shopping rewards program.

Observers say that while Haul is likely to steal some business from Amazon’s main site, “it is better that Amazon cannibalize its own sales than cede ground to rivals,” writes Neil Saunders, managing director of GlobalData, in his note on the announcement. “Moreover, we believe the new offer will help expand the audience, especially among younger consumers. There are also sufficient points of differentiation from the regular Amazon offer, including the longer delivery times.”

He notes that while Temu and other low-cost sites still offer shoppers advantages, including a constantly changing mix of products, Amazon’s trust and familiarity will appeal to shoppers.

Haul might help the ecommerce giant build an image as a place for bargains. “The value retail segment has been a major growth area over the past few years, and while the regular Amazon site has a good value-for-money reputation,” Saunders says, “its wide offer means that it is not primarily seen as an everyday low-price destination.”