Amazon is launching “Amazon Haul”, an ultra hard discount service competing with Temu and Shein. Offering low-cost products shipped from China, this strategy marks a turning point for the American giant, which until now prioritized speed of delivery. Could the success of this new service be replicated in France?
Temu and Shein may tremble in the face of Amazon
The online commerce giant, Amazon, is launching a frontal offensive against the Chinese low-cost online sales platforms Temu and Shein. Called “Amazon Haul”, this new service, accessible for the moment only via the mobile application and the mobile version of the website, offers a selection of products similar to those of its competitors: mass-produced items, at prices defying all competition, and mainly shipped from China. This strategy marks a turning point for Amazon, known for its express delivery times. The company itself recognizes the impossibility of reducing the delays inherent in the importation of these products from Asia.
As soon as you access the “Amazon Haul” platform, the resemblance with Shein and Temu is obvious. The grid organization of products, as opposed to Amazon’s usual list format, as well as the discretion of delivery times and customer ratings (visible only after clicking on an item) are strongly reminiscent of the interface of its rivals . Aggressive marketing, employing rocket emojis to signal impending out-of-stock items and flames to highlight “unbelievably low” prices, reinforces this impression. The offer, too, echoes that of the competition, with clothing at knockdown prices (golf pants for men at $16, 80s-style leggings for women at $4.99), and a ” Essentials” offering a motley mix of sponges, resistance bands, hoodies, silicone baking mats and socks. In
a press release
Amazon explains this strategic choice:
Although Amazon continues to offer more than 300 million items with fast, free shipping for Prime members (…), we’ve also heard from customers who want to purchase products at ultra-low prices, even though some of them take one to two weeks to arrive.
This foray by Amazon into the ultra-hard discount market raises several questions. Temu and Shein are regularly singled out for their environmental impact, linked both to the international transport of their goods and to the massive production of low-cost clothing, often described as “fast fashion”. These companies are also under investigation by European authorities, particularly regarding the potential use of addictive design mechanics and the sale of illegal products.
Amazon takes on giants
Despite these controversies, these platforms remain very popular with Generation Z. Studies show that Temu is the most downloaded app by Americans aged 18 to 24, with almost 42 million downloads between January and October 2024. Shein, the oldest on the market, recorded around 14.7 million downloads over the same period. The gap could be explained by the fact that many young people have already downloaded the Shein app.
Amazon’s advantage lies in the trust it inspires among consumers. While buyers may be hesitant to purchase from unknown sellers on Temu and Shein, Amazon’s reputation and policy Free returns within 15 days for items over 3 dollars could reassure customers. Amazon also claims to control sellers beforehand.
The timing of this launch, however, raises questions. The election of Donald Trump as President of the United States and his proposal to impose a 60% tax on products imported from China could impact Amazon Haul’s business model. If this measure comes into force, the profitability of the service could be compromised. However, it is common for political programs to evolve after an election.
Furthermore, the growing popularity of Chinese e-commerce platforms and their use of the “de minimis” exemption (which allows entry free of customs duties for shipments worth less than $800) has attracted attention of both American political parties. The Biden administration had already proposed measures to combat what it describes as “significant abuse” of this exemption by Chinese companies.
The arrival of Amazon in this ultra-competitive market could shake up the e-commerce landscape. If success is achieved in the United States, it is very likely that the American giant will consider international expansion, particularly in Europe and France. Such a deployment could have a significant impact on the consumption habits of the French, who are already fond of good online deals. It remains to be seen whether Amazon will succeed in establishing itself in the face of already well-established competition from Temu and Shein, and whether the political and economic context will allow this new service to prosper.
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