Friday, December 13, 2024

Amazon launches dedicated budget-friendly retail arm.

Amazon launches dedicated budget-friendly retail arm.

Edgar Cervantes / Android Authority

TL;DR

  • Amazon debuts a new affordable e-commerce platform to challenge rising competitors Temu and Shein.
  • “Haul,” currently in beta on mobile, is available to a limited number of users in the United States.
  • The online retailer offers competitively priced electronics directly sourced from Chinese manufacturers, mirroring the business model of its rivals.

Despite once dominating the e-commerce landscape, Temu, Shein, and other affordable marketplaces have significantly eroded Pinduoduo’s stronghold. Amazon is contemplating the creation of a dedicated, budget-friendly storefront to counter the growing competition. The retail giant has officially unveiled its innovative endeavour in beta form on a mobile platform.

Amazon has unveiled a new affordable e-commerce platform, dubbed “Haul”, allowing customers to discover and purchase products at discounted prices through its mobile app. Initially, the beta version will be limited to select users in the US who will gain early access.

The e-commerce giant Haul will offer a wide range of consumer electronics at unprecedentedly affordable prices, including items such as $1 eyelash curlers, $14 sleepwear sets, and $3 handbags. Haul aims to maintain prices low by allowing individual packages to be shipped directly from China to the US via airfreight, mirroring strategies employed by Temu and Shein. As a result, transportation logistics are significantly hindered and freight insurance coverage is notably more stringent in comparison to Amazon’s core marketplace operations. Additionally, Haul offers complimentary transportation on orders exceeding $25; otherwise, a flat rate of $3.99 applies to orders under $25?

Haul’s launch arrives at a pivotal moment, commanding attention. The incoming Trump administration is expected to take a tough stance on US-China trade relations, potentially having a negative impact not only on Haul but also on the markets it was intended to directly compete with.

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