With ultra-low-cost platforms such as Temu and Shein steadily chipping away at Amazon’s e-commerce dominance, Amazon has now launched its own low-cost storefront called Haul.
Haul which is available in the Amazon shopping app has a selection of products that are $20 or less, with the majority being under $10.
While the beta version of the platform has launched in the US, Australia is tipped to receive it subsequently with the Temu and Shein racing ahead and notching up billions of dollars worth of sales in Oz.
For its Haul platform, Amazon says that in the US it is charging a $3.99 shipping fee that’s waived for orders more than $25, and purchases are typically delivered in one-two weeks.
The decision to roll out Haul comes after Amazon claims that it heard “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.”
For items purchased via Haul that customers choose not to keep, Amazon offers free returns on purchases over $3 within 15 days of delivery.
While several customers have complained that products sold on platforms such as Temu are often of inferior quality or defective, Amazon says that it screens the products sellers offer in Haul to ensure that the products that are safe, authentic, and compliant with applicable regulations. All items available in Amazon Haul are also covered by Amazon’s A-to-z Guarantee. The A-to-z Guarantee protects customers when they buy any item from Amazon and covers product condition, including if the item is damaged, defective, or not as described.
In Australia, Temu and Shein have seen their market share rise rapidly. Data from Roy Morgan earlier this year showed that 3.8 million Australians aged 14+ are made at least one purchase from Temu over the previous 12 months, while 2 million are did the same from Shein over the same period.
Furthermore, Temu and Shein with their attractive pricing have also managed to cultivate high-frequency shoppers among their user base. Forty-two per cent of Shein shoppers are buying four or more times over 12 months, while 48 per cent of Temu shoppers are buying four or more times over 12 months.
Roy Morgan estimates that Temu and Shein together had close to $3 billion in annual sales in the 12 months to June 2024, which includes $1.7 billion for Temu and $1.1 billion for Shein.
