Amazon Haul is a new shopping section that Amazon announced this week. It offers a range of products priced at $20 or less. Haul aims to compete with eCommerce marketplaces like Temu and Shein by replicating its model of sourcing products directly from China and shipping them directly from the warehouses Amazon has in China, thereby surpassing U.S. taxes and customs.
Below are the key Features of Amazon Haul:
- Pricing: Most items are priced under $10, with some as low as $1.
- Product Categories: The selection includes fashion, home essentials, lifestyle products, and electronics.
- Shipping: Standard delivery times range from one to two weeks. Orders over $25 qualify for free shipping.
- Returns: Purchases over $3 are eligible for free returns within 15 days of delivery.
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 WSJ, Amazon is increasingly competing with Shein and Temu, which it now views as more significant threats than traditional retailers like Walmart, Best Buy and Target.
According to the latest reports, Temu’s user base in the U.S. has stood at 51.4 million since its launch, while Amazon’s has fallen from 69.6 million to 67 million.
Temu’s rise in 2023 was bolstered by a significant 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 Pulse 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 Potential Challenges for Brands
Although it’s still early days for Amazon Haul, it still presents a potential brand challenge by offering affordable products inspired by the latest trending designs directly shipped from China, raising concerns about intellectual property (IP) violations, trademark infringements, copyright infringements, and the potential sale of counterfeits.
Brands should proactively monitor the marketplace to protect their designs, logos, and other IP assets. They should implement an automated and proactive process to monitor potential violations swiftly, stay on top, safeguard brand equity, avoid possible loss of consumer products, and ensure consumer safety.
Bottom Line:
Brands may ultimately suffer as competition intensifies among eCommerce marketplaces like Amazon, Shein, and TikTok Shop.
Following the launch of Amazon Haul, brands should 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 your brand doesn’t become the eventual loser.
