Featured Article : “Amazon Haul” Budget Shop

Amazon has announced the launch of a U.S. beta of its new Haul Store, an online shopping experience designed to rival low-cost e-commerce giants Temu and Shein.

Products at $20 or Less 

The Haul platform is to be integrated into the Amazon Shopping app and offers a range of products priced at $20 or less, with most items under $10. While promising affordability, the initiative marks a departure from Amazon’s hallmark of rapid delivery, instead opting for a model that’s consistent with the popular budget shopping apps, i.e. providing low-cost products with longer shipping times (one to two weeks).

Amazon Haul 

Amazon Haul, therefore, is the company’s foray into the world of ultra-budget shopping, offering a curated selection of low-cost products across categories such as fashion, home goods, lifestyle items, electronics, and more. Currently only available in beta to U.S. customers through the Amazon Shopping app and mobile web, the platform aims to provide shoppers with an affordable and engaging experience.

Distinct Shop Within Amazon’s Broader App

The Haul store has been designed to function as a distinct shopping ecosystem within Amazon’s broader app. It features a grid-style interface that diverges from Amazon’s usual product list display, similar to layouts used by Shein and Temu, the companies that it’s clearly positioned to compete against. This design choice, coupled with vibrant marketing that highlights “crazy low prices” and “worth the wait” delivery times, positions Amazon Haul as a direct competitor in this niche segment.

Products Covered By Amazon’s Guarantee 

One factor which may provide reassurance and tempt more customers to try it (who may have been worried about the potential for bad experiences with the popular Chinese budget apps) is the fact that all items purchased through Amazon Haul are covered by Amazon’s ‘A-to-z Guarantee’, i.e. ensuring buyers receive products in the expected condition or receive a refund.

How To Access Haul 

Customers can access the store by searching for “Haul” in the Amazon app, using the main menu, or visiting www.amazon.com/haul via a mobile browser. As mentioned, at the moment it’s just for U.S. customers.

Why Launch Amazon Haul Now? 

Amazon’s decision to enter the ultra-budget market reflects its efforts to counter the growing popularity of Shein and Temu, which have capitalised on their ability to offer mass-produced, low-cost items directly from Chinese manufacturers. For example, according to data from app intelligence firm Appfigures, Temu and Shein rank among the most popular apps for U.S. users aged 18 to 24, with Temu achieving nearly 42 million downloads in 2024 alone!

Speaking about the launch of Amazon Haul, Dharmesh Mehta, Amazon’s Vice President of Worldwide Selling Partner Services, said, “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. Amazon Haul aims to help make shopping fun, easy, and affordable, all backed by Amazon’s A-to-z product guarantee so customers can shop with confidence.” 

The Business Model 

Amazon Haul leverages the retail giant’s network of third-party sellers to offer inexpensive goods. Many of these products are sourced directly from overseas manufacturers, primarily in China, and by shipping items directly from suppliers to customers, the platform reduces intermediary costs. However, one trade-off of this approach is that it means longer delivery times, ranging from one to two weeks, which contrasts sharply with the next-day or same-day delivery options Amazon customers typically enjoy.

Bulk Savings For Large Orders 

To keep prices low, Haul offers bulk savings for larger orders, with discounts of 5 per cent for purchases over $50 and 10 per cent for orders exceeding $75. Delivery is free for orders over $25, while smaller purchases incur a shipping fee of $3.99. Amazon also offers free returns on items priced above $3 within 15 days, with over 8,000 convenient drop-off locations across the U.S.

What Sets Haul Apart? 

While Temu and Shein have built their brands around low prices, they have faced criticism over product quality, customer trust, and regulatory scrutiny. Amazon aims to differentiate itself by integrating the Haul store into its existing ecosystem, thereby bringing the trust and reliability associated with its name to a market often viewed with scepticism.

Amazon also screens sellers on the Haul platform to ensure products meet safety and compliance standards. This added layer of oversight is likely to reassure customers, particularly those hesitant to purchase from lesser-known retailers.

Also, Amazon’s established logistics network and customer support infrastructure provide an additional layer of convenience. The A-to-z Guarantee covers every purchase, ensuring that buyers can shop with confidence, a feature not always guaranteed on competing platforms.

Challenges 

Despite its obvious potential, Amazon Haul faces some perhaps significant challenges. One of the primary hurdles is the extended delivery times. For a company synonymous with speed, the one-to-two-week wait could deter customers accustomed to receiving their orders within days.

There are also now some broader geopolitical and regulatory concerns. For example, in the U.S., the Biden administration has proposed measures to close tax loopholes that benefit platforms like Temu and Shein. Specifically, the “de minimis” rule allows imports valued under $800 to enter the U.S. duty-free, enabling companies to maintain razor-thin margins. Should this exemption be removed or modified, Haul’s operational costs could rise.

Adding to these pressures, incoming President-elect Donald Trump has proposed a 60 per cent tariff on Chinese imports, further complicating the economic landscape for platforms dependent on goods shipped from China. These challenges could clearly impact Haul’s ability to sustain its low-cost model while maintaining profitability.

Environmental concerns may also prove to be a worry for Amazon Haul. For example, platforms like Temu and Shein have been criticised for the waste generated by fast fashion and low-cost manufacturing. If Amazon fails to address similar concerns, it risks damaging its reputation.

Potential Market Impact 

The launch of Haul by such a powerful company and brand could significantly disrupt the discount retail sector. By tapping into its existing customer base, Amazon appears to be uniquely positioned to attract budget-conscious shoppers who may have otherwise turned to Temu or Shein. Also, the platform’s integration within the Amazon app should ensure a seamless user experience, potentially drawing in customers who already trust the Amazon ecosystem.

However, the success of Haul will depend on its ability to balance affordability with quality and reliability. Early customer feedback will be crucial in shaping the platform’s future. That said, Amazon’s commitment to refining the Haul experience suggests that it is prepared to make adjustments to meet consumer expectations.

Looking Ahead 

Amazon Haul represents a bold move by the e-commerce giant to capture a share of the ultra-low-cost market. While its established brand and customer trust give it a competitive edge, the platform must navigate a host of challenges, from regulatory changes to shifting consumer preferences.

As Dharmesh Mehta noted, “It’s early days for this experience, and we’ll continue to listen to customers as we refine and expand it in the weeks and months to come.” If successful, Amazon Haul could redefine how consumers perceive ultra-budget shopping, setting new standards for affordability and trust in the process.

What Does This Mean For Your Business?

Although Amazon Haul is an ambitious venture, it’s tempting to believe that if any company is well-positioned to carve a significant slice of the ultra-low-cost market currently dominated by Temu and Shein, it must be Amazon. By leveraging its extensive logistics network, established customer trust, and seller partnerships, Amazon has clearly positioned Haul as a compelling alternative for budget-conscious shoppers. Its integration within the familiar Amazon ecosystem, coupled with the assurance of its A-to-z Guarantee, looks certain to provide a level of confidence that its rivals may struggle to match.

However, the challenges facing Haul are neither small nor inconsequential. The departure from Amazon’s hallmark rapid delivery to longer shipping times, although consistent with the budget shopping model, represents a gamble. Whether its existing customer base will tolerate the trade-off for lower prices remains to be seen. Additionally, geopolitical uncertainties, such as proposed tariffs on Chinese imports and potential changes to tax exemptions, could pose additional hurdles that may impact the platform’s operational efficiency and pricing structure.

That said, Amazon’s effort to address issues of quality and customer trust, particularly in a market often criticised for its lack of oversight, stands as a strong differentiator. However, concerns about environmental impact and sustainability in an age of increasing scrutiny over fast fashion and waste may test the company’s commitment to its broader corporate values.

Ultimately, the launch of Amazon Haul is a calculated risk in a fiercely competitive space.