Amazon, the US e-commerce giant, has launched a low-cost online store selling clothing, home goods, and electronics for under $20, competing with discount retailers that are increasingly eating into its market share.
According to a report by the Associated Press, Amazon announced in a blog post on Wednesday, November 13, that the service named Amazon Haul has started to roll out to some US customers. Most of the products are priced below $10, with free shipping offered for orders over $25.
Documents provided to sellers by Amazon indicate that the company plans to ship products to US customers from warehouses in China. Amazon stated that Haul orders can be delivered within one to two weeks.
On Wednesday, many of the items showcased in the store front were similar to those commonly found on Shein and Temu, two Chinese-owned multinational e-commerce companies that have attracted a large number of American consumers in recent years with extremely low prices.
Shein’s core customers are young women attracted by the cheap clothing sold on the website. Temu offers clothing, accessories, kitchen gadgets, and various other products for bargain hunters.
Temu and Shein have been criticized for the environmental impact of the ultra-fast fashion industry model they employ. Additionally, both companies have faced scrutiny from lawmakers and regulatory bodies in the US and other countries regarding product safety, labor exploitation, and copyright infringement issues.
Amazon’s new storefront is only available on its shopping app and mobile website, featuring unbranded products such as $2.99 phone cases and combs, as well as a $14.99 sleeveless dress.
The company aims to convey its pricing information through banner ads on the page, promoting a campaign of “ultra-low prices” and “staying within budget” for activewear.
Dharmesh Mehta, Vice President of Amazon’s Global Sales Partner Services, stated in a release, “Finding quality products at extremely low prices is crucial for customers, and we will continue to explore ways to collaborate with sales partners to offer products at ultra-low prices.”
“This experience is still in its early stages, and in the coming weeks and months, we will continue to listen to customer feedback and make improvements and expansions based on that,” he added.
However, the prices of Amazon’s imported goods from China may soon increase. In September, the Biden administration expressed its intent to crack down severely on low-priced Chinese products flooding the US market. Former President Trump proposed imposing a 60% tariff on goods from China.