Amazon launches Temu and Shein rival with 'crazy low' prices

Published On Nov 14, 2024, 6:12 AM

Amazon has launched a new outlet called Haul, aimed at offering products priced at $20 or less, catering to cost-conscious consumers. The mobile-only feature is accessible through the Amazon Shopping app for US customers, promoting longer delivery times (1-2 weeks) in exchange for lower prices. This move is a direct response to the competitive landscape established by low-cost retailers like Temu and Shein, focusing on providing affordable products while potentially changing Amazon's typical speedy delivery model. The initial offerings include items priced under $10 and promise a range of deals above the $25 threshold for free shipping.

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Amazon's entry into the ultra-low-price market segment could position it well against competitors like Temu and Shein, especially if it captures budget-conscious consumers during the current economic climate. However, increased scrutiny regarding environmental implications could pose risks to the brand's image, potentially affecting customer loyalty. Overall, while there are some risks, the initial consumer response will be essential to gauge. A solid rollout could positively impact Amazons’ sales and market share in the discounted goods segment.

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