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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. It 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 Chinese-owned e-commerce apps. Bloomberg journalist Amanda Mull told the BBC in July that positioning itself as a competitor to the likes of Temu would be a near-term priority for Amazon.
She said Amazon has "created the spending habits" of western consumers by acting as a trustworthy middleman between them and manufacturers. But shifting away from its speedy delivery and returns options to echo the practices of increasingly popular Temu and Shein apps would allow them to follow in their footsteps by cutting prices, she said. Amazon has said most of the products on Haul will 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.
But the mass production of cheap products has come under criticism due to concerns about the impact of their shipping and disposal on the environment. “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 to 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..
