Competing with Shein and Temu, Amazon launches a "Ten Dollar Store"

According to Zhitong Finance APP, Amazon (AMZN.US) recently launched an online store focused on low-priced products called Amazon Haul, selling electronics, clothing, and other items priced under $20, in order to compete with the increasingly popular discount e-commerce platforms Shein and Temu. In a blog post on November 13 (Wednesday), Amazon announced that the Amazon Haul store will feature products priced under $10 and offer free shipping for orders over $25. According to documents provided by Amazon to sellers, the company plans to ship to U.S. customers from its warehouses in China, with products expected to arrive within one to two weeks. Currently, many products in Amazon Haul are similar to those found on Shein and Temu. Both Shein and Temu have attracted a large number of young consumers in recent years due to their low-price strategies. Shein primarily targets young women with affordable fashion clothing, while Temu caters to cost-conscious consumers by offering a diverse range of products, including clothing, accessories, and kitchen supplies. However, both platforms have faced criticism for the environmental impact of their fast fashion models and have drawn the attention of regulatory agencies in the U.S. due to issues with some products. Amazon Haul is currently available only on Amazon's shopping app and mobile website, primarily selling unbranded items such as phone cases priced at $2.99, combs, and sleeveless dresses priced at $14.99. Amazon emphasizes keywords like "crazy low prices" and "budget shopping" in its page advertisements to convey its value proposition. Dharmesh Mehta, Vice President of Global Selling Partner Services at Amazon, stated, "Customers want to buy quality products at extremely low prices. We will continue to explore ways to collaborate with selling partners to further provide low-priced products. This experience is currently in its early stages, and we will continue to gather customer feedback in the coming weeks and months to optimize and expand." In addition to launching Amazon Haul, Amazon also announced another significant business adjustment this week: it will gradually shut down its free, ad-supported streaming service Freevee and integrate the content into Prime Video. In the future, Prime Video will offer some free ad-supported content to all Prime members and non-members. Amazon stated in a release, "The viewing content for Prime members will not change, and non-Prime members will also continue to have access to a large amount of free streaming content." These new initiatives indicate that Amazon is actively adjusting its business strategy to better meet market demands and respond to intense industry competition