Amazon (AMZN.US) launches "dollar store" to compete with Shein and Temu

Amazon (AMZN.US) recently launched Amazon Haul, an online store focused on low-priced goods, selling electronics, clothing, and other items under $20 to compete with the increasingly popular discount e-commerce platforms Shein and Temu.In a blog post on November 13 (Wednesday), Amazon announced that Amazon Haul would feature products under $10 and offer free shipping for orders over $25. According to a document provided to sellers by Amazon, the company plans to ship products to U.S. customers from its warehouses in China, with delivery expected within one to two weeks.Many of the products in Amazon Haul currently resemble those on Shein and Temu, e-commerce platforms that have attracted a large number of young consumers with their low-price strategies. Shein caters mainly to young women, offering affordable fashion clothing, while Temu aims to satisfy cost-conscious consumers with a diverse range of products, including clothing, accessories, and kitchen goods. However, both platforms have faced criticism for their fast-fashion model's environmental impact and have come under scrutiny from regulatory bodies such as the U.S. government due to issues with some products.Amazon Haul is currently available only on Amazon's shopping app and mobile website, offering unbranded items such as phone cases for $2.99, hairbrushes, and sleeveless dresses for $14.99. Amazon highlights keywords such as "crazy low prices" and "shopping on a budget" in page ads to convey its value proposition. "Customers want to buy high-quality products at extremely low prices," said Dharmesh Mehta, vice president of global sales partnerships at Amazon. "We will continue to explore ways to work with sellers to further provide low-priced products. This experience is in its early stages, and we will continue to collect customer feedback and optimize and expand in the coming weeks and months."In addition to launching Amazon Haul, Amazon this week also announced another significant business shift: gradually closing its free, ad-supported streaming service Freevee and integrating its content into Prime Video. In the future, Prime Video will offer some free, ad-supported content to all Prime members and non-members. In a statement, Amazon said, "Prime members' viewing content won't change, and non-Prime members will continue to have access to a lot of free streaming content."These new initiatives demonstrate Amazon's active business strategy adjustments to better meet market demands and address intense industry competition.