Amazon introduces Amazon Haul with “insanely low prices.” Here’s what you should know.

Amazon on Wednesday launched a new online shopping service called Amazon Haul that experts say could help the e-commerce giant compete with Chinese retailers Temu and Shein.

Amazon Haul — whose name is a play on social media “hauls” in which people brag about their purchases — focuses on selling items for $20 or less, or what Amazon calls “crazy low prices.” . In a blog post, Amazon said the new service is available on its shopping app and mobile website.

Temu and Shein have convinced Many Gen Z shoppers and other bargain hunters are capitalizing on this by offering low-priced clothing, electronics and other items that typically ship directly from manufacturers in China. At the same time, U.S. consumers are still feeling the pinch of inflation, which has hit a 40-year high during the pandemic, and many are looking for bargains as a result.

“Amazon Haul is a response to both the rise of low-price Chinese marketplaces and the fact that consumers are increasingly placing value on value for money while trying to stretch their budgets,” said Neil Saunders, chief executive from the market research company GlobalData.

He added: “The value retail segment has been a big growth area in recent years and although the regular Amazon site has a good reputation for value for money, it is not primarily viewed as a retail store due to its wide offering “Everyday offer.” -Price target.”

What is Amazon Haul?

Amazon Haul is an online store within the Amazon app that sells low-cost items, particularly targeting consumers who shop at discount retailers such as Temu and Shein.

To find Amazon Haul, go to the Amazon app and search for “Haul” in the search bar or go to www.amazon.com/haul in your browser.

How much do Amazon Haul items cost?

According to Amazon, everything on Amazon Haul is under $20, but most products are $10 and under.

Items available at Amazon Haul on Wednesday included a three-pack of fuzzy socks for $4.99 and a quilted tote bag for $7.99. The goods ranged from clothing to household items like silicone baking mats and throw pillows.

The company offers discounts on larger orders, such as: B. 5% on orders over $50 and 10% on orders over $75.

What is the delivery time for Amazon Haul items?

Longer than regular Amazon items, with the company stating that items are typically delivered within one to two weeks.

What do the experts say?

Amazon Haul could help the retailer appeal to younger shoppers, GlobalData’s Saunders noted. But there is also a risk that the low-cost shopping site could cannibalize sales on Amazon’s main site, he added.

Still, Saunders said, “It’s better for Amazon to cannibalize its own sales than to cede ground to competitors.”