Amazon Haul is a new shopping section that Amazon announced this week. Amazon Haul offers a wide range of products priced at $20 or less. This initiative aims to compete with budget-friendly platforms like Temu and Shein by providing affordable items across categories such as fashion, home goods, lifestyle, and electronics.
Key Features of Amazon Haul:
- Pricing: Most items are priced under $10, with some as low as $1.
The Verge - Product Categories: The selection includes fashion, home essentials, lifestyle products, and electronics.
The Verge - Shipping: Standard delivery times range from one to two weeks. Orders over $25 qualify for free shipping.
The Verge - Returns: Purchases over $3 are eligible for free returns within 15 days of delivery.
The Wall Street Journal
Amazon Haul is in its beta phase and accessible to select U.S. customers via the Amazon app and mobile website. Based on customer feedback, Amazon plans to expand its availability.
Why has Amazon Launched “Haul”?
According to The Wall Street Journal, Amazon is increasingly competing with Shein and Temu, which it now views as greater threats than traditional retailers like Walmart and Target. Temu’s user base in the U.S. has surged to 51.4 million since its September 2022 launch, while Amazon’s has fallen from 69.6 million to 67 million. Despite this, Amazon claims it did not report a decline in users.
Temu’s rise in 2023 was bolstered by a major advertising campaign, including a Super Bowl commercial, positioning it alongside Shein. Established in 2008, Shein generated $22 billion in revenue in 2022 and was valued at $66 billion last year.
Marketplace has done extensive research on this topic. As mentioned in their latest blog, Amazon Haul sells unbranded, low-priced items directly from Chinese warehouses to U.S. shoppers, offering cheaper alternatives to regular Amazon products by bypassing customs taxes and U.S. warehousing fees. Delivery takes one to two weeks, similar to Shein and Temu, though nearly half of Temu’s U.S. sales now come from wholesale inventory using a Fulfillment by Amazon (FBA) model.
Amazon Haul and Caution for Brands
Amazon Haul, while in its early stages, presents a unique opportunity and potential challenge for brands. The platform’s focus on ultra-affordable products, often inspired by trending designs, raises concerns about intellectual property (IP), trademark, and copyright infringement. Brands should proactively monitor the marketplace to ensure that their designs, logos, and other protected assets are not being replicated or misused. Starting this vigilance early allows businesses to address potential violations swiftly, safeguarding their brand equity and avoiding costly legal disputes later. As Amazon expands Haul’s reach, maintaining oversight will be critical to protecting proprietary assets in this evolving retail ecosystem.
Bottom Line
As competition intensifies among various marketplaces like Amazon, Shein, TikTok Shop, and Temu, brands may end up suffering. Following the launch of Amazon Haul, it is advisable for brands to engage their legal teams and invest in online brand protection software, such as GreyScout, sooner rather than later. In this battle of eCommerce marketplaces, ensure that your brand doesn’t end up as the eventual loser.
