Amazon is stepping into the budget e-commerce market with its new app, Haul.
The app targets price-conscious shoppers by offering items under $20, directly competing with Chinese platforms like AliExpress, Shein, Temu, and Hacoo, according to El Economista.
Chinese platforms dominate the market with extremely low prices, making it hard for other sellers to compete. While these products often sacrifice quality, consumers are drawn to the significant savings.
This trend has challenged even Amazon, which remains the leader in e-commerce but is feeling the pressure of this competition.
Haul is Amazon’s response to this shift. Unlike the company’s usual focus on fast delivery and premium services, Haul will prioritize affordability.
Products will be priced at $20 or less, with most under $10.
Orders over $25 will qualify for free shipping. Delivery times will stretch to two weeks, as most products will be sourced from China. This aligns Haul more closely with platforms like Shein, where low costs justify longer waits.
For now, Haul will be available only in the United States. Dharmesh Mehta, Amazon’s Vice President of Worldwide Selling Partner Services, emphasized the importance of low prices for customers.
He stated, “Finding great products at very low prices is important, and we continue to explore ways to work with seller partners to provide ultra-low prices.”
Amazon sees Haul as an experimental project. Mehta acknowledged the risks, noting that if customers find the products disappointing or if the app fails to be profitable, “I don’t expect Haul to last long.”
The app represents a significant change in Amazon’s approach. It moves away from the company’s hallmark features like fast shipping to cater to a growing market of budget-conscious shoppers.
