Amazon enters low-cost retail space with new ‘Haul’ platform
Amazon has launched a new budget-friendly shopping outlet called “Haul,” where all products are capped at $20 (around £15.79), aiming to compete with low-cost retail giants Temu and Shein. The new mobile-only shopping experience debuted within Amazon’s app for U.S. customers and promises “crazy low prices” for items that might require up to two weeks for delivery.
Haul marks Amazon’s entry into a low-cost, slower-shipping model that has fueled the success of rivals like Temu and Shein, which have surged in popularity despite environmental criticisms related to mass production and extensive shipping demands. Forrester retail analyst Sucharita Kodali noted that Amazon’s Haul may face similar concerns, adding that platforms like Temu and Shein have faced backlash for exploiting import loopholes and contributing to waste.
The Haul launch underscores Amazon’s commitment to offering ultra-low prices, with most items priced under $10 (£7.90). According to Amazon, shoppers can expect deals like a three-piece razor set or a jewelry set for less than $3 each. Free shipping is available on orders over $25, with delivery times ranging from one to two weeks.
“Finding great products at very low prices is important to customers, and we continue to explore ways to work with our selling partners to make ultra-low prices possible,” said Dharmesh Mehta, Amazon’s vice president of worldwide selling partner services. He added that Amazon will monitor customer feedback closely to refine and expand Haul in the coming weeks and months.
The Haul experience, still in its beta phase, will provide product guarantees to assure customers of safety and quality standards. The platform could potentially be expanded to other markets, though Amazon has yet to announce plans for a UK launch.
Despite the potential for growth, Kodali warns that Amazon may face challenges as consumers grow weary of low-quality goods and slower shipping speeds. “If the products are underwhelming and unprofitable, I don’t expect Haul to last long,” she told the BBC. The launch of Haul comes amid growing regulatory scrutiny of low-cost retail platforms, with entities like the European Commission recently launching actions against Temu over concerns of illegal products.
