Amazon has come out with an answer to Temu and Shein’s sale and discount stores. The Amazon Haul store, which can only be accessed on the mobile app or mobile web browser right now, has similar cheap mass-produced things, most of which come from China. Even Amazon can’t cut down on the time it takes to get these goods from overseas, which goes against their long-standing image as a leader in fast delivery.
Even the way the Amazon Haul home page is designed makes me think of Shein and Temu: Instead of Amazon’s usual list, items are shown in grids, and you can’t see shipping times or star reviews until you click on an item. Some things have rocket ship emojis on them to let you know that they are “selling fast,” like this $4.99 iPhone 16 Pro case. Or, you might see a fire emoji that says the $2.89 price for three mesh laundry bags is “crazy low.” There is clothing for sale on Amazon Haul, too. A pair of golf pants for men costs $16 and leg socks for women in the style of the 1980s cost $4.99. There are a lot of different kinds of things in the “Staples” area, like socks, resistance bands, hoodies, silicon baking mats, and sponges.
Amazon wrote in a blog post, “While Amazon continues to offer over 300 million items with fast, free delivery for Prime members. we also hear from customers that sometimes they would love to shop ultra-low-priced products even if some of them take one to two weeks to arrive.”
Many people don’t like Temu and Shein because they are bad for the earth because they ship their clothes all over the world and make a lot of waste with fast fashion. Both businesses have also been investigated by consumer protection authorities in the European Union. These authorities are looking into whether they use illegal or addicting design patterns in their products.
Even though they’ve been in a lot of trouble, these discount stores are still very popular with Gen Z. AppFigures study shows that Temu was the most downloaded app among U.S. users ages 18 to 24 between January and October 2024, with almost 42 million downloads in that age group. It’s thought that about 14.7 million people have downloaded Shein. However, the big difference in download numbers could be because Gen Z users have already downloaded Shein, which has been out longer than Temu.
Shein and Temu face a risk in that customers might not feel safe buying from unknown sellers who might be dishonest. Customers already trust Amazon more, but the company works with similar, mostly China-based sellers of mass-produced goods. On the other hand, Amazon says it checks out sellers before they sell. Also, buyers can return items for free within 15 days if the value of the item is over $3.
Amazon might not want to invest in this business plan right now, since Donald Trump wants to put a 60% tax on goods from China that come into the US. This tariff plan isn’t set in stone, though. After winning an election, leaders often change the plans they had for the next one.
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However, both Democrats and Republicans are interested in how popular Chinese e-commerce products are. The Biden administration has already asked Congress to do something about what it calls “significant increased abuse” of the “de minimis” exception by Chinese e-commerce companies. Shipments worth less than $800 can enter the U.S. duty-free thanks to the de minimis exemption. This is what helps stores like Temu and Shein keep their prices so low.
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