Amazon’s (AMZN-1.60%) Haul, the retail giant’s attempt at offering low-cost products, has yet to capture the attention of U.S. consumers in the way it bargained for.
Despite Amazon’s strong presence, recent data from software company Omnisend shows that Haul has received a lukewarm reception since its launch, falling behind Chinese e-commerce giants like Shein and Temu.
A February survey revealed that 76% of respondents had not shopped on Amazon Haul in the past year, with only 16% using it at least once a month. For comparison, Temu and Shein have built more consistent customer bases, with 28% and 23% of respondents shopping on their platforms monthly.
Launched in Nov. 2024, Amazon’s Haul is still in its early stages, while Temu debuted in the U.S. in Sept. 2022 and Shein in May of the same year.
According to Greg Zakowicz, senior e-commerce expert at Omnisend, Amazon is playing catch-up. “Temu and Shein have already cemented their place in the budget shopping category with aggressive discounting and social commerce strategies,” he said.
If Amazon wants to make a real impact, Zakowicz said the company needs create compelling reasons for shoppers to choose Haul over other competitors. This could mean offering a better customer experience, faster shipping, or exclusive deals. The mobile-only shopping platform features a wide selection of products – from fashion and home goods to electronics – all priced at $20 or less. Amazon’s delivery business is arguably unmatched, having delivered over 9 billion items via same-day or next day delivery.
While Amazon Haul may have had a slow start, the company isn’t giving up just yet. Amazon has indicated plans to expand Haul into Europe later this year, according to CNBC (CMCSA+0.89%), although no specifics on its U.S. performance have been shared.
Additionally, like Temu and Shein, Haul faces the looming threat of President Donald Trump’s tariffs on Chinese imports. With new tariffs in place, Amazon Haul may have entered a budget marketplace at a difficult time. The platform, which relies heavily on ultra-low-cost imports from China, could struggle to attract price-sensitive U.S. consumers who are reevaluating their spending habits.
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