Amazon Ventures into Discount Market with 'Haul' as Black Friday Looms and Zoox Expands Autonomous Testing
1min read As of last week, Amazon (AMZN) saw a 4.19% decline over two consecutive days, totaling a 5.37% drop over that short period. In the past week, the shares decreased by 2.68%, although they've risen by 33.35% since the beginning of the year. The current market capitalization of Amazon stands at $2,130.46 billion.
Recently, Amazon introduced Amazon Haul, a new venture aiming to compete with discount e-commerce platforms such as Shein and Temu. Amazon Haul targets the sale of low-priced electronics, clothing, and other items under $20, catering to budget-conscious consumers. This move directly aligns with the strategies employed by Shein and Temu, which have attracted a large following, especially among younger shoppers, through their competitive pricing models.
In a blog post, Amazon detailed that Amazon Haul would specialize in items priced below $10, offering free shipping for orders exceeding $25. Products from this new platform will be dispatched from Amazon's warehouses in China to U.S. customers, with estimated delivery times of one to two weeks. The assortment includes unbranded items such as $2.99 phone cases and $14.99 sleeveless dresses.
Furthermore, Amazon announced its intent to gradually phase out its ad-supported streaming service Freevee, integrating content into its Prime Video offerings. This marks a strategic shift to consolidate its streaming services and broaden access to ad-supported content for both Prime members and non-members alike.
As the Black Friday and Cyber Monday shopping events approach, Amazon is preparing for another round of significant e-commerce activity. Between November 21 and December 2, these retail holidays are expected to generate substantial sales volumes, possibly eclipsing previous records. In the past, consumers have engaged extensively in deals within over 35 categories, with millions of transactions expected. Popular products from brands like Sonos, Staub, and Supergoop! are anticipated to be among the top sellers.
In an additional endeavor, Amazon has pressed forward with its autonomous vehicle unit, Zoox, to expand testing of its robotic taxis in San Francisco. Despite regulatory challenges faced by competitors like Waymo and Cruise, Zoox is distinct in its design, eliminating conventional manual controls and aiming for public access through an early rider program next year.
Moreover, Amazon is exploring innovative delivery solutions, such as developing smart glasses for its delivery drivers to provide real-time navigation. This initiative is part of a broader attempt to optimize delivery processes and reduce associated costs amidst rising competition with major retailers like Walmart.