Everything is under $20 at Amazon's newest store

Amazon is launching a new storefront with major discounts on electronics, clothing and more in response to its competitors opening marketplaces of their own.

Amazon is launching a new storefront with major discounts on electronics, clothing and more in response to its competitors opening marketplaces of their own. (Gabby Jones, Bloomberg via CNN)


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NEW YORK — Amazon is targeting retail rivals Shein, Temu and TikTok Shop with a new deeply discounted storefront that sells a wide array of products for $20 or less.

Called "Amazon Haul," the mobile-only experience debuted Wednesday in the Amazon app and has everything from fashion accessories to home goods, plus clothes and electronics as Amazon's response to Chinese marketplaces, which have seen rapid growth in the United States from cost-conscious shoppers looking for cheap products.

"The value retail segment has been a major growth area over the past few years, and while the main Amazon site has a good value-for-money reputation, its wide offer means that it is not primarily seen as an everyday low-price destination," Neil Saunders, managing director for retail at GlobalData, told CNN.

Amazon said in an announcement that a "majority" of the Haul items are under $10, with some even less than $1. For example, an iPhone case is on sale for $1.79, a tablecloth for $4.99 and memory foam slippers for $9.99.

However, the cheap prices come with a caveat that items can take one to two weeks to be delivered. And shipping is only free for orders more than $25, with an additional $3.99 fee for orders below that threshold, and the store only accepts returns on items that are $3 or more.

Amazon added it "screens the products sellers offer in Haul so customers can be confident they'll receive products that are safe, authentic, and compliant with applicable regulations," after two leaders from the Consumer Product Safety Commission want to look into how Shein and Temu comply with safety regulations.

Saunders said there will be concerns that Haul might cannibalize sales from its flagship website, but it's "better that Amazon cannibalize its own sales than cede ground to rivals," and the storefront could prove popular with younger consumers who are avid shoppers of Amazon competitors.

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Jordan Valinsky

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