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Amazon Launches New Low-Cost Storefront to Compete with Discount Retailers

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This photograph shows the logo of US multinational company Amazon displaying on the facade of the distribution centre in Augny, near Metz, eastern France, on August 29, 2024. JEAN-CHRISTOPHE VERHAEGEN/AFP via Getty Images

Amazon has introduced Amazon Haul, a new online storefront offering items priced at $20 or less, as part of its strategy to compete with popular discount platforms like Temu and Shein.

The service, available exclusively on Amazon's mobile app and website, features unbranded products, including apparel, home goods, lifestyle items, and electronics.

Amazon Haul Offers Big Savings with Discounts

The Amazon Haul storefront focuses on budget-friendly shopping, with most items costing under $10. Some items, like a phone case priced at $1.79 or a set of kitchen tongs for $4.99, highlight the platform's emphasis on affordability.

Customers can enjoy free delivery for orders over $25, with delivery times ranging from one to two weeks. Orders under $25 carry a $3.99 shipping fee.

According to USA Today, Amazon hopes to entice shoppers by offering additional discounts for larger purchases: 5% off orders of $50 or more and 10% off orders over $75.

To drive home its value-focused approach, banners on the storefront advertise deals like "crazy low prices" and "activewear that won't stretch your budget."

Amazon Haul marks a direct response to the success of Shein and Temu, both of which have gained popularity by offering low-cost, unbranded products. These competitors, often targeting younger, budget-conscious shoppers, have challenged Amazon's dominance in the e-commerce market.

However, unlike its competitors, Amazon promises vetted products and a streamlined return policy. Purchases over $3 can be returned within 15 days at various drop-off locations, including Amazon Fresh, Whole Foods, UPS, and Staples.

Amazon's Rising Challenges

Launching Amazon Haul comes at a time when importing goods from China—where many of these products are sourced—faces increasing scrutiny.

Efforts by the US government to reduce dependency on Chinese imports could lead to higher costs for retailers like Amazon. Still, Amazon's vast logistics network and established customer base may give it an edge in navigating these challenges, AP said.

Dharmesh Mehta, Amazon's vice president of Worldwide Selling Partner Services, emphasized that the company is committed to refining the service based on customer feedback. "Finding great products at very low prices is important to customers," he stated, adding that the platform will expand in the coming months.

By launching Amazon Haul, the e-commerce giant aims to regain ground in the low-cost retail market while delivering convenience and trust to customers.

As Amazon refines its approach, the platform could become a strong competitor to existing discount retailers, offering shoppers a new way to save without sacrificing quality or service.

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