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Retail

Amazon Aims at Temu With Low-Priced Storefront

The e-commerce giant has launched Haul, a new low-cost online storefront aimed at competing with Temu, offering affordable products with longer shipping times and a $3.99 delivery fee
Amazon
The low-cost shopping app is aimed at shoppers who want to trade longer shipping times for rock-bottom prices. (Shutterstock)
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Amazon has launched an online storefront designed to compete with Temu, the low-cost shopping app that gained traction with shoppers who trade longer shipping times for rock-bottom prices.

Amazon describes Haul, which is available in a beta version for shoppers who use the company’s smartphone app or mobile browsers, as an “engaging shopping experience that brings lower priced products into one convenient destination.” Purchases are delivered in one to two weeks. The company charges a $3.99 shipping fee that’s waived for orders larger than $25.

On Wednesday, the app showed a four-pack of Christmas socks for $6.98, a $3 iPhone case and a $14 women’s crewneck fleece. The selection, priced at $20 or less, focuses on clothing, home goods, jewellery and electronics.

The Seattle-based company started courting China-based sellers for the service earlier this year. Temu, a unit of PDD Holdings Inc., and online fashion retailer Shein have built loyal followings with steep discounts. Amazon also cut the fees it charges merchants who sell cheap clothing.

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The company has heard “from customers that sometimes they would love to shop ultra-low-priced products even if some of them take one to two weeks to arrive,” Amazon said in a blog post published Wednesday that described the service.

By Matt Day

Learn more:

Amazon Sets Ultra-Low Pricing Plans for Temu Rival Store, The Information Reports

Amazon is reportedly implementing strict price caps for a new low-cost storefront, limiting items like jewellery to $8 and guitars to $13, in an effort to compete with discount rivals such as Temu and Shein.

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