Amazon has launched a new store featuring clothing, home goods, electronics and other items priced under $20 to fend off growing competition from discount upstarts Temu and Shein.
The store, called “Amazon Haul,” is accessible through the company’s mobile app and promises “crazy low prices” on a wide range of items. Shoppers can purchase eyelash curlers and oven mitts for $1, or nail dryers for $3. The company offers free shipping on orders over $25 and $3.99 shipping on orders below that threshold.
An Amazon spokesperson noted Company Blog Articles Announce storefront. The company noted that it will screen products offered through Haul to ensure they are safe, authentic and comply with regulatory requirements.
Dharmesh Mehta, vice president of global selling partners at Amazon, said: “Finding great products at extremely low prices is important to customers, and we will continue to explore ways to work with our selling partners so that they can offer products at extremely low prices. “Service,” in a statement. “It’s still early days for this experience, and we’ll continue to listen to our customers as we refine and expand it over the coming weeks and months.”
CNBC previously reported that Amazon plans to launch its own discount online store with items shipped directly from China.
Amazon is betting that shoppers will wait longer to buy products in exchange for the lowest prices. The company notes that most items purchased on Amazon Haul will arrive within two weeks, “although shipping times may vary and depend on the customer’s delivery location.”
It’s a shift for Amazon, which has cemented its dominance in e-commerce in part by offering faster shipping than rivals. The company disrupted the online shopping world by offering free two-day shipping for the first time, and has been speeding up delivery times ever since. Amazon now offers same-day or next-day delivery, and in some parts of the country, it promises delivery within hours of ordering.
With Amazon Haul, the company is responding to the rise of Temu, Shein and TikTok Shop, all of which have ties to China, the world’s second-largest economy. These platforms have exploded in popularity in the U.S. over the past few years, attracting discount-hungry shoppers for bargains on clothing, cosmetics, home furnishings and other items.
Amazon is able to offer low prices through its Haul store, importing every item directly from Chinese manufacturers, similar to how Temu and Shein’s business models operate. To manage costs, the company said it won’t accept returns on items worth $3 or less.
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