Amazon responds to the low-cost, discount stores of Temu and Shein. With the debut of The Amazon Haul store, currently available exclusively on the mobile app or mobile web browser, offers similar mass-produced, discounted items, most of which are shipped from China. This represents a shift from Amazon’s long-held reputation for being a powerhouse when it comes to fast delivery times, as not even Amazon can reduce the time it takes to receive these products overseas.
Amazon Haul’s homepage resembles those of Shein and Temu down to its layout: Items appear in grids, rather than the typical Amazon listing, and shipping times and star ratings aren’t visible unless you click on an item. Some items are tagged with rocket emojis warning that this $4.99 iPhone 16 Pro case is “selling fast.” Or you might see a fire emoji indicating that the price for a $2.89 three-pack of mesh laundry bags is “extremely low.” Like its competitors, Amazon Haul similarly sells clothing ($16 for a pair of men’s golf pants, or $4.99 for ’80s-style leg warmers for women). In an “Essentials” section, you’ll find an assortment of… resistance bands, sponges, hoodies, silicone baking mats, and socks.
“While Amazon continues to offer more than 300 million items with free, fast delivery for Prime members […] we also hear from customers that they would sometimes love to buy products at ultra-low prices even if some of them take a week or two to arrive,” communicated Amazon in a blog post.
Shein and Temu have been the subject of numerous criticisms due to their environmental impact, a consequence of their worldwide shipments, and the waste generated by fast fashion. Both companies have also been investigated for consumer protection in the European Union, where regulators are looking into their possible use of addictive design patterns and illegal products.
The popularity of low-cost retailers
Despite the controversy surrounding them, these low-cost retailers remain incredibly popular with Gen Z. According to research from app intelligence firm Appfigures, the most popular app among US users aged 18-24 was Temu, with nearly 42 million downloads in that demographic between January and October 2024. For Shein, that estimate is roughly 14.7 million downloads, though the difference in download numbers is likely so stark because Gen Z users were already blatantly on the Shein app, which has been around longer than Temu.
One risk for Shein and Temu is that customers may not feel comfortable buying from unknown sellers who could be misleading; consumers have more trust in Amazon, but the company is working with similar sellers, mostly based in China, of mass-produced goods. However, Amazon says it screen sellers in advance and that if customers want to return their purchase, they can do so for free within 15 days, only if the item costs more than $3.
It’s an uncertain time for Amazon to invest in this business model, given that President-elect Donald Trump has proposed imposing a 60% tax on imported Chinese goods. However, this tariff plan is not set in stone: It is common for politicians to change their campaign platforms after winning a victory.
The popularity of Chinese e-commerce shipments, however, has drawn bipartisan attention. The Biden administration has already proposed congressional action to end what it calls a “significant increase in abuse” by Chinese e-commerce companies of the “de minimis” exception. The de minimis exemption allows shipments valued at less than $800 to enter the U.S. duty-free, helping retailers like Temu and Shein maintain such low margins.
