E-commerce giant Amazon has launched a new platform called Haul, that competes in the space with budget-focused sites like Temu and Shein. Products at Haul come at a maximum price tag of around $20.
The new retail platform will be exclusively found on Amazon’s app in the United States and is branded as a mobile-first experience offering items at rather remarkably low prices-many under $10.
The company has targeted its customers for low-cost consumers who would wait one to two weeks before getting items shipped, a business model that is the same with Amazon’s Chinese competitors.
There have been noted concerns among analysts because Haul provides cheap shopping, but in this process it also raises concerns over environmental and quality issues. Temu has attracted criticism as it is resulting in over-waste generation and has been found to utilize loophole in imports.
Haul, too, now finds itself on an unfavorable side because customers have taken a liking towards greener and responsible products. Sucharita Kodali, analyst at Forrester, said, “The interest in green and socially responsible products is rising.” The European Commission has already grilled Temu on the safety of products offered to customers and their compliance with the regulations which indicates the rising vigil on the platforms.
Amazon has highlighted that Haul’s value-for-money deals, starting with a $3 razor set and jewelry set, which have been protected by its product safety assurances. Orders above $25 eligible for free shipping always helped reach the price-sensitive consumers. Haul is still in its infancy, according to Dharmesh Mehta, vice president for selling partner services at Amazon, and customer feedback dictates its growth.
But analysts say that the promise of Haul would be short-lived because of the fatigue among consumers regarding low-cost goods of mixed quality. According to Kodali, such products are increasingly being deterred from consumption by wary consumers, and if Haul fails to cut out good quality, it is in trouble.
Haul represents a strategic expansion into the fast-growing budget market for Amazon. At the same time, however, it will pose a challenge because of the attention gained by worldwide regulatory bodies reviewing environmental and social impacts from ultra-affordable e-commerce platforms.
