Brian Delp of the Robin Report tells his readers that Amazon’s introduction of Haul directly targets companies like SHEIN and Temu. Delp writes:
The recent Amazon Haul launch debuts a new service offering affordable products, most priced below $20 and many under $10. It is designed to attract and hold onto price-conscious consumers – especially next gens. The new platform is a strategic move to capture the ultra-budget segment of the U.S. market and counterbalance the dominance of fast-growing Chinese ecommerce marketplace competitors like SHEIN and Temu. Haul is also expanding Amazon’s ecosystem to stop the attrition of its customers seeking those low-cost offerings.
“Amazon may face backlash from traditional sellers on its marketplace who could view Haul as undercutting their prices. Maintaining quality standards while keeping prices low could also prove challenging, especially with increased scrutiny of low-cost goods in terms of durability and ethical production. The optics of Haul being a Temu wannabe could compromise Amazon’s reputation.”
Amazon’s introduction of Haul directly targets companies like SHEIN and Temu, which have captured a significant share of the U.S. consumer market. […]
The “if you can’t beat them, join them” approach may ultimately be shortsighted. Not only does it come at a cost by devaluing and cannibalizing Amazon’s current pricing, but it is also launching at a time of great uncertainty. What will happen with de minimis? What tariffs and other changes are going to come from the new administration that will shape retail? These questions will not be answered for several months. Meanwhile, Amazon can opportunistically capture some of the holiday sales, yet at such ultra-low-price points, this is unlikely to make a significant impact to its financials. Will Amazon be renting a U-Haul in the next few months to take Haul to the junkyard? My guess is yes.
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