Amazon has one cheap online storefronts featuring electronics, clothing and other products costing less than $20, an effort to compete with discount retailers that have increasingly entered the e-commerce giant’s territory.
In a blog post on Wednesday, the company said the new Amazon Haul store will primarily carry products costing less than $10 and offer free shipping on orders over $25. Amazon plans to ship the products to U.S. customers from a warehouse in China, according to documentation the company provided to sellers. Amazon said Haul orders could arrive in one to two weeks.
Many of the available products in the store on Wednesday resembled the types of items you would typically find Shein and Temuthe Chinese-founded e-commerce platforms that have grown in popularity in recent years.
Shein’s main customers are young women who are seduced by the cheap clothes sold on the site. Temu offers clothing, accessories, kitchen gadgets and a wide range of other products for bargain hunters.
Temu and Shein are often criticized about the impact on the environment of the ultra-fast fashion business model that the two companies follow. They have also faced scrutiny from lawmakers and regulators in the US and abroad on other issues, including some of these the products on their platforms.
Amazon’s new storefront, which is only available through the shopping app and mobile website, includes unbranded products such as a phone case and hairbrush that cost $2.99, and a sleeveless dress that retails for $14.99. The company is trying to get its message across about value, with banners on the page advertising “outrageously low prices” and sportswear “that won’t break your budget.”
“Finding great products at ultra-low prices is important to customers, and we continue to look for ways we can work with our retail partners to offer products at ultra-low prices,” said Dharmesh Mehta, vice president of Worldwide Amazon Selling Partner Services. , said a statement. “It’s just the beginning of this experience, and we will continue to listen to customers as we refine and expand it in the coming weeks and months.”
It’s fair to say that importing goods from China could soon become more expensive for Amazon. In September, the Biden administration said it did cracking on cheap products sold from China, a move intended to reduce U.S. dependence on Beijing but could also lead to higher prices for the U.S. consumers who have flocked to Shein and Temu. President-elect Donald Trump has also submitted a proposal 60% tariff on goods from China.
Amazon announced other news this week.
The company said it was shutting down its free, ad-supported streaming service Freevee and consolidating its content under Prime Video, which now includes has advertisements for Prime members who refuse to pay extra to avoid them.
The Seattle-based technology company confirmed Wednesday that it will phase out Freevee in the coming weeks, a move it said is intended to “provide customers with a simpler viewing experience.” All Freevee content currently streaming on PrimeVideo will be labeled “Watch for 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 still be accessible to non-Prime members,” an Amazon spokesperson said in a statement.