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Amazon Introduces Haul, a Mobile-Only Section for Ultra-Low-Price Items
Two weeks before Black Friday, Amazon quietly introduced a new section to its mobile app, dubbed Haul. This mobile-only area is designed for ultra-low-price items, primarily shipped directly from China. Haul is Amazon’s response to the growing popularity of apps such as PDD Holdings’ Temu and fast-fashion retailer Shein.
Since its launch in November, Haul has received millions of unique customer visits. The section offers items at bargain prices, such as sneakers for $9.98, kitchenware for $5.99, and phone cases for $2.99. Unlike Temu, Haul caps the price of each offering at $20 and provides free shipping on orders over $25.
Neil Saunders, managing director of GlobalData Retail, views Haul as a separate entity from the main Amazon site. This move allows consumers to browse and shop for budget-friendly items without compromising their loyalty to Prime. However, the trade-off for cheaper prices is slower shipping, with items taking one to two weeks to arrive.
Haul and Temu both rely on their existing network of China-based sellers to import cheap individual items into the U.S. under the de minimis provision, which allows for customs exemptions on items valued under $800. This leads to longer shipping times but lower prices, a trade-off many consumers are willing to make.
Despite public outcry surrounding the environmental and labor practices of companies like Shein, sales have continued to break records. The success of Haul and other budget e-commerce sites has led to increased scrutiny of these business models.
Amazon is expanding its selection in Haul to hundreds of thousands of items across dozens of categories in the coming weeks. The company’s commitment to addressing concerns surrounding Haul is yet to be seen, with the future of the platform potentially being impacted by impending political headwinds.