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

[November 14, 2024]  By HALELUYA HADERO

Amazon has launched a low-cost online storefront featuring electronics, apparel and other products priced at under $20, an effort to compete with discount retailers that have increasingly encroached on the e-commerce giant's turf.

In a blog post on Wednesday, the company said the new Amazon Haul storefront will mostly feature products that cost less than $10 and offer free delivery on orders over $25. Amazon plans to ship the products to U.S. customers from a warehouse it operates in China, according to documentation the company provided to sellers. Amazon said Haul orders could arrive within one to two weeks.

Many of the available products on the storefront Wednesday resembled the types of items typically found on Shein and Temu, the China-founded e-commerce platforms that have grown in popularity in recent years.

Shein’s core customers are young women enticed by the low-cost apparel sold on the site. Temu offers clothing, accessories, kitchen gadgets and a broad array of other products for bargain-hungry shoppers.

Temu and Shein often get criticism over the environmental impact of the ultra-fast fashion business model the two companies follow. They have also faced scrutiny from lawmakers and regulators in the U.S. and abroad over other issues, including some of the products on their platforms.

Amazon’s new storefront, which is only available on its shopping app and mobile website, features unbranded products, such a phone case and a hairbrush that cost $2.99, and a sleeveless dress that retails for $14.99. The company is seeking to drive home its message on value, with banners on its page advertising “crazy low prices” and activewear “that won’t stretch your budget.”

A sign in the lobby of Amazon offices is shown on Feb. 14, 2019 in New York. (AP Photo/Mark Lennihan, File)

“Finding great products at very low prices is important to customers, and we continue to explore ways that we can work with our selling partners so they can offer products at ultra-low prices,” Dharmesh Mehta, Amazon’s vice president of Worldwide Selling Partner Services, said in a statement. “It’s early days for this experience, and we’ll continue to listen to customers as we refine and expand it in the weeks and months to come.”

To be sure, importing goods out of China could soon become more expensive for Amazon. In September, the Biden administration said it was cracking down on cheap products sold out of China, a move designed to reduce U.S. dependence on Beijing but could also trigger higher prices for the U.S. consumers who have flocked to Shein and Temu. President-elect Donald Trump has also proposed a 60% tariff on goods from China.

Amazon announced other news this week.

The company said it was shutting down its free, ad-supported streaming service Freevee and consolidating the content under Prime Video, which now also features ads for Prime members who refuse to pay extra to avoid them.

The Seattle-based tech company confirmed Wednesday that it will phase out Freevee in the coming weeks, a move that it says is intended to “deliver a simpler viewing experience for customers.” All Freevee content that’s currently streaming on Prime Video will be labeled “Watch for Free” so both Prime and non-Prime members can easily see what’s available for free, the company said.

“There will be no change to the content available for Prime members, and a vast offering of free streaming content will still be accessible for non-Prime members,” an Amazon spokesperson said in a statement.

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