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

Amazon has recently introduced a new shopping platform called Haul, which aims to provide customers with an affordable shopping experience. This new service is designed to compete with popular low-cost retailers like Temu and Shein. Haul is unique because it limits the price of items to a maximum of $20, making it an attractive option for budget-conscious shoppers. The service is currently available exclusively through the Amazon Shopping app for customers in the United States. Amazon has promised 'crazy low prices' on a variety of products, but customers should be prepared to wait up to two weeks for their orders to arrive. The rise of Temu and Shein has been notable in recent years, but these companies have also faced criticism for their environmental practices. Sucharita Kodali, a retail analyst, pointed out that both Temu and Shein have been accused of exploiting loopholes in import regulations and contributing to wastefulness. She expressed concerns that Amazon's Haul might encounter similar challenges. The introduction of Haul marks Amazon's entry into the market for cheaper goods with longer shipping times, a business model that has proven successful for its competitors. However, there is growing scrutiny from regulators worldwide regarding the proliferation of platforms that sell mass-produced items at extremely low prices. For instance, the European Commission has taken action against Temu due to concerns about the sale of illegal products. Amazon has made low prices a central feature of Haul. In addition to the $20 price cap, the company has stated that most items will be priced below $10. Examples of products available on Haul include a three-piece razor set and a stylish necklace, bracelet, and earring set, each priced at just under three dollars. Customers can also enjoy free shipping on orders over $25, with delivery times ranging from one to two weeks. Dharmesh Mehta, Amazon's vice president of worldwide selling partner services, emphasized the importance of providing customers with access to great products at low prices. He mentioned that Amazon is continuously exploring ways to collaborate with sellers to offer ultra-low prices. The Haul shopping experience is currently in its 'beta' phase, meaning that all products sold will be backed by Amazon's product guarantees, ensuring customer safety and satisfaction. Mr. Mehta acknowledged that it is still early in the development of this new shopping platform and that customer feedback will be crucial in refining and expanding the service in the coming weeks and months. The BBC has reached out to Amazon to inquire about the potential launch of Haul in the UK, but no definitive response has been provided. Ms. Kodali also highlighted the risks associated with this new venture for Amazon. She noted that there is evidence suggesting that consumers are becoming increasingly weary of low-quality products and slow shipping times. If customers find the products disappointing or if they do not generate profit for Amazon, she does not expect Haul to have a long lifespan in the market.