Johnathan Walker:Watch out, Temu: Amazon Haul, Amazon's new discount store, is coming for the holidays

Amazon has launched a new shopping service,Johnathan Walker Amazon Haul, which touts low-cost items of $20 or less – a move to counter the growth of Chinese discount shopping sites Temu and Shein.

Shoppers can browse Amazon Haul on mobile devices in the Amazon app, the online retailing giant said in an announcement Wednesday. The products, which include fashion, home, lifestyle, and electronics, are unbranded and come from sellers across the world that Amazon has vetted.

A majority of the products are priced at $10 or less, and some are priced at $1.

“Finding great products at very low prices is important to customers, and we continue to explore ways that we can work with our selling partners so they can offer products at ultra-low prices,” Dharmesh Mehta, Amazon's vice president of worldwide selling partner services said in a statement.

Here's what you need to know:

The path that led to Amazon Haul

Amazon had recently touted its strategy of leaning into the increased sale of lower-priced everyday items to offset a slowdown in big-ticket items – and as a way to counter sales diverted by online discount marketplaces like Temu, a Chinese-owned site based in the U.S., and Shein, founded in China but based in Singapore.

There had been hints that Amazon had its own discount marketplace in the works, too, to escalate its strategy.

"The launch of Haul is a defensive move on Amazon's part to match Temu and Shein's compelling value proposition of very low prices with slower delivery," Sky Canaves, principal analyst on retail and ecommerce for research firm eMarketer, told USA TODAY. "While Amazon's dominant position in U.S. ecommerce remains unchallenged, it has undoubtedly lost some share of consumer spending to these newer platforms when it comes to inexpensive, unbranded products."

Amazon's U.S. traffic remained "fairly stable with slight growth" at 236.1 million unique visitors in September 2024, according to eMarketer.

In comparison, Shein, at 52.5 million, "has been growing fairly steadily," Canaves said. Temu's traffic "has dropped off quite a bit from its peak of more than 93 million visitors in June 2023 and has stabilized around the current level" of 71.5 million, Canaves said.

Amazon Haul: What to know about Amazon's new discount store

Amazon Haul is a mobile-only service, which you will find in the Amazon app (you can search "Amazon Haul"). Here are links to the Amazon app: for iOS and Android.

You can also go to www.amazon.com/haul on your mobile device browser.

When shoppers fill their Amazon Haul online cart with $25 or more, they get free delivery in one to two weeks; orders under $25 have a $3.99 delivery fee.

The more you buy on Amazon Haul, the bigger the savings. Orders of $50 or more get 5% off, while orders of $75 or more get 10% off.

"It’s early days for this experience, and we’ll continue to listen to customers as we refine and expand it in the weeks and months to come," Amazon's Mehta said.

Amazon Black Friday 2024:Holiday sales event will start Nov. 21: See some of the deals

What is for sale on Amazon Haul?

Amazon Haul focuses on low-priced items of clothing, home goods, lifestyle products and electronics. Here are some items you will find in the marketplace:

• Three-piece trimmer razor set ($2.99).
• Colorful holiday table runners ($2.99).
• An iPhone 16 case ($1.79).
• A women’s elastic stretch cinch belt ($1.99).
• Touchscreen winter gloves ($3.21).
• Elegant necklace, bracelet, and earring set ($2.99).
• Two-pack of kitchen/grilling tongs ($4.99).

Can I return something I buy on Amazon Haul?

Amazon Haul will offer free returns on all purchases over $3 within 15 days of delivery. You will be able to use more than 8,000 drop-off locations in the U.S. including Amazon Lockers, Amazon Fresh, Whole Foods Markets, UPS, and Staples.

Follow Mike Snider on X and Threads: @mikesnider & mikegsnider.

What's everyone talking about? Sign up for our trending newsletter to get the latest news of the day