Amazon decides to cut prices to crush the competition

Amazon decides to cut prices to crush the competition
Amazon decides to cut prices to crush the competition

By offering this sales platform, Amazon wants to launch a prolific business. But that’s not his only motivation. According to the Forrester analyst, the idea is more to destabilize its competitors, rather than really launching into a new market. Sucharita Kodali estimates the size of this market for Amazon at only a few billion dollars, while the American giant’s sales are expected to exceed $600 billion this year. Haul would thus be a direct competitor to Temu, which sells consumer goods at very low prices, and Shein, specialized in “fast fashion”.

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“Because of the size and reach of Amazon, I think a lot of consumers will try to buy things on Haul”affirms the analyst, adding however that “Most of these items are useless gadgets that are not of good quality.” Consumers will indeed be able to find products such as phone cases, electric shavers and even clothing, for prices below 20 dollars (18.93 euros). Note that the delivery time is in no way comparable to what Amazon offers. Some items may take up to two weeks to arrive at their destination.

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