Amazon’s new $20 and under store is here to challenge Shein and Temu

Amazon has launched a store wherever each merchandise costs $20 oregon little successful a bid to instrumentality connected fashionable low-cost buying apps similar Temu and Shein. The new “Amazon Haul” service is disposable successful the US via Amazon’s app oregon mobile website, and offers a wide scope of akin fashion, home, lifestyle, and electronics products that you’d expect to find connected the rival Chinese platforms.

“Finding large products astatine precise debased prices is important to customers, and we proceed to research ways that we tin enactment with our selling partners truthful they tin connection products astatine ultra-low prices,” Amazon’s vice president of worldwide selling spouse services, Dharmesh Mehta, said successful Amazon’s announcement.

The Haul storefront has a visually akin layout to Temu and Shein, focusing mostly connected affordable pricing and slapping “crazy low” banners connected point listings. Amazon says the bulk of items volition beryllium priced astatine $10 oregon less, with immoderate offerings arsenic debased arsenic $1. Customers are encouraged to stack their baskets, however, with Amazon offering discounts of 5 percent disconnected orders implicit $50 oregon 10 percent disconnected orders of $75 oregon higher.

Shipping costs $3.99 and is escaped connected orders implicit $25, but volition instrumentality 1 to 2 weeks to get — which Amazon believes its customers volition beryllium good with if it allows them to “shop ultra-low-priced products.” That’s a akin transportation timescale taken by Temu and Shein, which suggests Haul’s banal is besides importing banal straight from Chinese manufacturers.

Both Temu and Shein are facing stricter regulations successful the EU and the US owed to risks surrounding counterfeit goods, amerciable products, and copyright infringements connected their platforms. Amazon is trying to temper immoderate user concerns astir that by saying each products connected Haul are screened to guarantee they’re “safe, authentic, and compliant with applicable regulations.”