Amazon launches online discount store to better compete with Shein and Temu

Amazon has launched one cheap online Storefront with electronics, clothing and other products priced under $20, an attempt to compete with discount retailers that are increasingly encroaching on the e-commerce giant’s turf.

In a blog post Wednesday, the company said the new Amazon Haul storefront will primarily feature products that cost less than $10 and offers free delivery on orders over $25. Amazon plans to ship the products to U.S. customers from a warehouse in China, according to documents the company provided to sellers. Amazon said haul orders could arrive within one to two weeks.

Many of the products available in store Wednesday were similar to typical item types Shein and Temuthe e-commerce platforms founded in China that have become increasingly popular in recent years.

Shein’s main customers are young women who are attracted to the cheap clothing sold on the site. Temu offers clothing, accessories, kitchen gadgets and a wide range of other products for bargain-hungry shoppers.

Temu and Shein are often criticized for this Impact on the environment of the ultra-fast fashion business model that the two companies follow. They have also come under scrutiny from lawmakers and regulators in the United States and abroad over other issues, including some of the following the products on their platforms.

Amazon’s new storefront, available only through the shopping app and mobile website, features unbranded products such as a $2.99 ​​phone case and hairbrush, as well as a sleeveless dress that retails is available for $14.99. The company tries to drive home its value message with banners on its site touting “crazy low prices” and activewear “that won’t break your budget.”

“It’s important for customers to find great products at very low prices, and we continue to look for ways to work with our sales partners to enable them to offer products at extremely low prices,” Dharmesh Mehta, vice president of Worldwide Selling Partner Services at Amazon said in a statement. “It is still early days for this experience and we will continue to listen to customers as we refine and expand it in the coming weeks and months.”

However, importing goods from China could soon become more expensive for Amazon. In September, the Biden administration said this was the case take tough action on cheap products sold from China, a move aimed at reducing U.S. dependence on Beijing but which could also result in higher prices for U.S. consumers who are flocking to Shein and Temu. President-elect Donald Trump has also suggested 60% duty on goods from China.

Amazon announced more news this week.

The company said it would shut down its free, ad-supported streaming service Freevee and consolidate content under Prime Video, which it is now doing contains advertising for Prime members who refuse to pay extra to avoid them.

The Technology company based in Seattle confirmed on Wednesday that Freevee will be phased out in the coming weeks, a move said to be “intended to provide customers with an easier viewing experience.” All Freevee content currently streaming on Prime Video will be labeled “Watch Free” so both Prime and non-Prime members can easily see what’s available for free, the company said.

“There will be no change to the content available to Prime members and an extensive range of free streaming content will continue to be accessible to non-Prime members,” an Amazon spokesperson said in a statement.