Amazon launches an online discount storefront to better compete with Shein and Temu

Published On Nov 13, 2024, 2:17 PM

Amazon has launched a new low-cost online storefront called "Amazon Haul" featuring items priced under $20 to compete with discount retailers like Shein and Temu. The store aims to attract customers looking for affordable options, especially in electronics and apparel. Items generally cost under $10, with free delivery on orders over $25. The new storefront will primarily ship products from Amazon’s warehouse in China, though potential future U.S. tariffs on these imports could affect pricing. Additionally, Amazon announced it will close its ad-supported streaming service Freevee and integrate its content into Prime Video.

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Amazon's entry into the low-cost product market positions it to capture a larger share of budget-conscious consumers, especially in light of potential price increases from tariffs on imports from China. The make-up of the products offered (similar to Shein and Temu) may attract younger shoppers, driving engagement and sales growth in a competitive space. However, the impact of tariffs remains a critical risk that could affect margins depending on how Amazon navigates these challenges.

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