Amazon launches Temu and Shein rival with ‘crazy low’ prices

Amazon has launched a new outlet called Haul which caps the price of products on sale at $20 (£15.79), in an effort to take on low-cost retailers Temu and Shein.

The online shopping giant unveiled Haul as a mobile-only experience available in its Shopping app for US customers on Wednesday.

It says shoppers can expect “crazy low prices” on Haul products that are “worth the wait” of up to two weeks for delivery.

Amazon’s Chinese e-commerce rivals have enjoyed rapid growth in recent years but also faced criticism over the environmental impact of making and shipping ever more cheap products.

“Temu and Shein have faced backlash both for taking advantage of import loopholes and for being wasteful and environmentally irresponsible,” Forrester retail analyst Sucharita Kodali told BBC News.

“This effort seems to have the same challenges,” she said of Amazon Haul.

Haul marks the platform’s long-awaited foray into the sale cheaper goods with lengthier shipping times – a business model which has spurred the rise of Temu and Shein.

But regulators around the world are showing growing wariness about the rise of platforms selling mass produced goods for very low cost prices.

The European Commission also launched action against Temu in October over concerns that it is failing to stop the sale of illegal products.

Amazon has made low prices central to its offer with Haul.

As well as a maximum price of $20, it said most would cost less than $10 (£7.90).

It cited examples such as a three-piece razor set and an “elegant necklace, bracelet, and earring set” available at just under three dollars each in a press release about the launch.

Free delivery will also be available for orders of $25 or over with one to two week delivery.

“Finding great products at very low prices is important to customers, and we continue to explore ways that we can work with our selling partners so they can offer products at ultra-low prices,” said Dharmesh Mehta, Amazon’s vice president of worldwide selling partner services.

The company says the “beta” Haul shopping experience will see all products sold backed by its product guarantees and provide confidence about their safety.

Mr Mehta said it was still “early days” for its new shopping vertical, and customer feedback would be listened to in order to “refine and expand it in the weeks and months to come”.

The BBC has asked Amazon if, and when, the service will be launched in the UK.

Ms Kodali added the project was not without risk for Amazon.

She told the BBC there was evidence consumers were “growing tired of poor quality goods and slow shipping.”

She said if the products were underwhelming for shoppers and unprofitable for Amazon “I don’t expect Haul to be long for the world.”