Amazon has introduced new feature called Haul, in its mobile-only section within its app that focuses on ultra-low-priced items.
Amazon’s Haul is designed to rival popular platforms like Temu and Shein, offering ultra-low-cost products shipped directly from China.
Since its launch in November, the feature has drawn millions of unique customer visits, showcasing Amazon’s push to capture a share of the budget-friendly e-commerce market, according to CNBC.
Amazon’s Haul offers budget-friendly items like $9.98 sneakers, $5.99 kitchenware, and $2.99 phone cases, with a $20 price cap on all products.
Free shipping is available for orders over $25, and shoppers get bigger discounts as their cart total grows, encouraging bulk buying—true to its name, Haul.
“One of the really interesting things that Amazon did is to make this completely separate from the main Amazon site,” said Neil Saunders, managing director of GlobalData Retail. “Now, there’s a logic in doing that: They don’t want consumers to trade down to lower-priced goods.”
The lower prices on Amazon’s Haul come with slower shipping times. Unlike the typical one- or two-day delivery for Prime members, Haul orders take one to two weeks to arrive.
While Amazon has long worked with Chinese sellers, it traditionally stocks their items in U.S. warehouses to speed up shipping—though this increases costs, which are reflected in product prices. Haul bypasses this step to keep prices low.
Both Haul and Temu keep costs low by leveraging their network of China-based sellers and utilizing the U.S. de minimis provision. This customs exemption allows items valued under $800 to be imported without duties or taxes. While this practice is under increased federal scrutiny, it remains a key factor in enabling these platforms to offer such low prices.
The reliance on the de minimis provision results in longer shipping times but significantly lower prices—a trade-off many Americans accept. This is evident in the rapid rise of Temu, which has become the most downloaded free app on Apple’s App Store for two consecutive years since its U.S. debut in September 2022.
“It’s not just about combating Temu,” said Saunders. “It’s also about looking at the opportunity in that lower-price part of the market, which has been very fast-growing across the whole retail spectrum over the past couple of years.”
Other low-cost e-commerce platforms offering Chinese goods have experienced significant growth in recent years. Established players like Alibaba and newcomers like TikTok Shop are attracting sellers, even amid concerns over a potential U.S. ban on TikTok.
