Amazon Aims at Temu With Low-Priced Storefront Called Haul
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(Bloomberg) -- Amazon.com Inc. has launched an online storefront designed to compete with Temu, the low-cost shopping app that gained traction with shoppers who trade longer shipping times for rock-bottom prices.
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Amazon describes Haul, which is available in a beta version for shoppers who use the company’s smartphone app or mobile browsers, as an “engaging shopping experience that brings lower priced products into one convenient destination.” Purchases are delivered in one to two weeks. The company charges a $3.99 shipping fee that’s waived for orders larger than $25.
On Wednesday, the app showed a four-pack of Christmas socks for $6.98, a $3 iPhone case and a $14 women’s crewneck fleece. The selection, priced at $20 or less, focuses on clothing, home goods, jewelry and electronics.
The Seattle-based company started courting China-based sellers for the service earlier this year. Temu, a unit of PDD Holdings Inc., and online fashion retailer Shein have built loyal followings with steep discounts. Amazon also cut the fees it charges merchants who sell cheap clothing.
The company has heard “from customers that sometimes they would love to shop ultra-low-priced products even if some of them take one to two weeks to arrive,” Amazon said in a blog post published Wednesday that described the service.
(Updates with details on price cap, comment from Amazon blog, beginning in the third paragraph.)
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