What: Amazon has launched "Haul," a low-cost online storefront aimed at competing with Temu, offering budget-friendly products with longer shipping times and a USD 3.99 delivery fee.

Why it is important: This move highlights Amazon's strategy to capture price-sensitive consumers, directly challenging rivals like Temu and Shein by offering ultra-low-priced items, signalling a shift in the e-commerce landscape toward affordability over speed.

Amazon has introduced "Haul," a new low-cost online storefront designed to compete with Temu, the discount shopping app known for offering rock-bottom prices in exchange for longer delivery times. Available in beta through Amazon’s smartphone app and mobile browsers, Haul offers a selection of affordable products under USD 20, including clothing, home goods, jewellery, and electronics. Shipping takes one to two weeks, with a USD 3.99 fee waived for orders over USD 25. Amazon has also reduced fees for merchants selling low-priced items and is actively courting China-based sellers to expand its offerings. This launch positions Amazon to challenge the dominance of Temu and Shein in the rapidly growing low-cost e-commerce sector.

Haul by Amazon: competing with Temu for budget-conscious shoppers