Shein and Temu have strong competition: Amazon launched Haul

Amazon recently launched a new platform called Haul in an attempt to face stiff competition from fast fashion retailers Shein and Temu.

The former recorded sales of more than 30 billion euros worldwide last year, surpassing even Amazon.

Very low prices, slow deliveries

Although Amazon is known for fast deliveries through the Amazon Prime program, Haul will deliver between 1-2 weeks.

Why is it taking so long?

Most products are shipped directly from warehouses in China, an approach similar to that used by Shein and Temu.

Thus, Amazon manages to keep costs low, even if the delivery time is longer than what Prime customers are used to.

For orders over 23 euros, customers will benefit from free delivery, but for products under three euros there is no return option.

Wide range of products

According to Amazon’s press announcement, in the Haul platform you will be able to find everything from clothing to accessories and household appliances, all at prices up to 19 euros, most of which are under 9.5 euros.

Here are some examples: belt for 1.90 euros or iPhone 16 case for 1.70 euros.

To benefit from free delivery, customers will need to make purchases of at least 24 euros.

Series of controversies

Despite the appeal of low prices, Amazon will have to address the ethical challenges associated with this business model.

Both Shein and Temu have been criticized for the working conditions of employees and the negative impact on the environment from rapid and intensive production.

Last year, a congressional investigation in the US flagged high risks related to the alleged use of forced labor in retailers’ supply chains.

Amazon claims that all products listed on Haul are verified to comply with applicable regulations.

Fear of the threat of Shein and Temu

According to a report by The Wall Street Journal, Temu’s monthly user base in the US reached 51.4 million, while Amazon saw a decline from 69.6 million to 67 million users.

Amazon Haul could be the first step towards a wider expansion of its affordable fashion strategy, strengthening its position in the online commerce sector and attracting a new generation of consumers interested in fast and affordable fashion.

Source: Mashable