In response to the rapid expansion of Temu and Shein in the U.S. market, e-commerce giant Amazon has unveiled its counteroffensive: a new platform called "Haul." This strategic move targets the ultra-low-price market segment, presenting both opportunities and challenges for small and medium-sized cross-border sellers operating on Amazon's marketplace.
Haul: Amazon's Budget Shopping Counterattack
Rather than being an entirely new platform, Haul represents Amazon's proactive defense against emerging competitors. Currently available exclusively within the Amazon app, Haul features a clearly demarcated "budget shopping zone" with product listings separate from the main marketplace. Its core strategy is straightforward: rock-bottom pricing. Numerous items are priced below $10, with some products available for as little as $1—a clear play for price-conscious American consumers.
The platform enhances its appeal with customer-friendly logistics. Orders exceeding $25 qualify for free shipping, while smaller purchases incur a modest $3.99 shipping fee. This approach lowers purchasing barriers, making budget shopping more accessible.
Positioned as Amazon's answer to platforms like Pinduoduo, Haul focuses on delivering "quality goods at bargain prices." Amazon aims to retain price-sensitive shoppers who might otherwise migrate to Temu or Shein.
Opportunities and Challenges for Small Sellers
For Amazon's third-party sellers, Haul presents a double-edged sword. The platform offers new visibility for budget-focused merchants, eliminating the need for customers to sift through countless listings for affordable options. This streamlined shopping experience could significantly boost exposure and sales for low-price products.
However, Haul's aggressive pricing raises concerns. Many products come directly from Chinese manufacturers, mirroring Temu and Shein's factory-to-consumer model that bypasses intermediaries. This threatens sellers relying on private labels, dropshipping, or arbitrage models, potentially squeezing their profit margins and market share.
Three Potential Market Shifts
1. Changing Customer Acquisition Strategies: Savvy brands may leverage Haul as a low-cost customer acquisition channel. By offering loss-leading products at irresistible prices, merchants can attract new buyers and subsequently upsell higher-margin items through Amazon's main marketplace or independent stores—similar to brick-and-mortar promotional tactics.
2. Intensified Private Label Competition: Many private label products on Amazon are essentially rebranded factory goods with premium pricing. If manufacturers begin selling directly on Haul at lower prices, private label sellers will face mounting pressure to reevaluate their pricing and branding strategies.
3. Challenges for Dropshipping Models: Sellers using dropshipping tools to resell AliExpress products at marked-up prices may find their business model undermined. Consumers can now purchase similar items directly through Amazon's trusted platform—often at lower prices with faster shipping and better customer service.
Market Outlook: Balancing Risks and Rewards
Whether Haul will fundamentally reshape Amazon's seller ecosystem remains uncertain. External factors including cross-border policies, logistics costs, and taxation will significantly influence market dynamics. However, the sustained global demand for affordable quality goods presents ongoing opportunities.
For sellers, success will require vigilant monitoring of Haul's development, strategic product selection, and business model adjustments. Emphasizing product quality, supply chain efficiency, and brand differentiation will be crucial for maintaining competitiveness on both Haul and Amazon's main marketplace. Diversifying sales channels will also help mitigate overreliance on any single platform.
Amazon's Haul initiative ultimately presents both challenges and opportunities. Small and medium sellers must approach this new landscape with careful analysis and adaptability to secure their position in the evolving e-commerce arena.