The e-commerce giant is entering the very low cost market in the United States with a new offering of low-priced products, aimed at attracting consumers who are sensitive to their purchasing power. This strategy marks a turning point for Amazon, which aligns itself with the practices of its Chinese competitors.
A bet on low-cost to attract consumers
Amazon is entering the low-cost market with the launch of Haul, a new platform offering items for less than $20, available only in the United States for the moment. Amazon's goal is clear: to compete with popular platforms like Temu and Shein, which have captured the attention of American and European consumers looking for bargains. In the midst of inflation and facing weakened purchasing power, these sites, mainly Chinese, are enjoying growing popularity thanks to their low prices and their vast choice of products, ranging from fashion to electronics.
Like its competitors, Haul promises “crazy low prices,” as its slogan states, with items priced under $1. To stand out, Amazon adopts the codes of its rivals by multiplying visual incentives: eye-catching banners and emojis, such as rockets or flames, encourage customers to be tempted. “Finding great products at very low prices is important to customerssaid Dharmesh Mehta, vice president of Global Selling Partner Services at Amazon. This new initiative seems to mark a break with Amazon's strategy, which had until then focused on improving delivery times and the quality of customer service.
To encourage quantity purchases, Amazon also offers discounts on large orders: 5% off for a basket over $50 and $10 off for orders over $75. Delivery costs, of $3.99, are free for purchases of $25 or more, a rate that contrasts with the group's usual practices.
Promotions and longer delivery times
However, customers will need to be patient, as delivery times vary between one and two weeks. This waiting time is similar to that offered by Temu and Shein, which transit their products from China. An expectation that could seem paradoxical for Amazon, whose reputation is based on its speed. However, the American giant seems to be betting on consumers' tolerance of these delays, in exchange for advantageous prices.
While Temu and Shein are often criticized for the uncertain quality of their products or for the presence of counterfeits, Amazon highlights its safety guarantees. The company ensures that the items available on Haul meet current standards and are controlled to avoid dangerous or non-compliant products. This attention to safety could constitute an advantage for the American giant, keen to reassure consumers who are increasingly wary of low-priced products.
By investing in the low-cost market, Amazon is diversifying its business model and taking a position in a sector dominated by Chinese platforms. This launch, which is currently testing the American market, could extend to Europe if the results are conclusive, especially since price competition remains a strategic issue for all e-commerce players. trade.
