Amazon Launches Discount Store With Products Under $20

In an effort to stave off competition from discount retailers such as Shein and Temu, Amazon.com announced Wednesday it was rolling out a beta version of a $20-or-less discount store called Amazon Haul, just in time for the holidays. Advertised by Amazon as "Unbelievable finds, crazy low prices," Amazon Haul is only available on mobile and offers products in the categories of fashion, home, lifestyle, and electronics that cost $20 or less.

Amazon Haul promises delivery times of one week to two weeks for the products, which are sold by Amazon or Amazon's selling partners. Available only on Amazon's mobile app and the mobile website, it has a slightly different look than the regular Amazon mobile app, including a scrolling marquee that advertises sales alongside emojis, and products like makeup brushes, table runners and iPhone cases marked "Crazy low" next to fire emojis. Any Amazon Haul purchase over $3 can be returned for free within 15 days of delivery. The company also offers multiple-purchase discounts, like 5 percent off orders over $50.

Total Retail's Take: Competitive brands like Temu and Shein are known for their deep discounts on fast-fashion and other low-cost items that typically ship directly from manufacturers in China. Both brands have targeted consumers on social media and used email marketing, influencer marketing and paid advertising to reach its target demographics — American teens and young people. This trend has certainly caught the eye of Amazon CEO Andy Jassy, who said in August that average selling prices were falling as customers were trading down to cheaper items and buying more essential goods, Reuters reported.

It's clear that Amazon views brands like Temu and Shein as competitive threats. Research from the app intelligence firm Appfigures shows that Temu is the most popular app among U.S. users ages 18 to 24, with almost 42 million downloads between January and October, while Shein had about 14.7 million downloads during that same period. The companies continue to be popular among Gen Z consumers despite their repeated environmental offenses. Shein, for instance, produces about 6.3 million tons of carbon dioxide a year, a number that falls well below the U.N.-proposed 45 percent target to reduce global carbon emissions by 2030.

Longer delivery times for Amazon Haul products is also a departure from what Amazon is known for: free, one- or two-day deliveries, typically offered to Prime loyalty customers.