Amazon Launches Haul: A New Budget Shopping Platform
In a strategic move to capture the budget-conscious consumer market, Amazon.com has rolled out its new platform, Haul, specifically targeting a selection of Chinese merchants. This initiative is part of Amazon’s efforts to compete with the likes of Temu and Shein as they vie for affordability-driven shoppers. Currently, participation in Haul is by invite only; however, the reaction from the Chinese vendor community has been exceedingly positive.
Growing Excitement Among Chinese Vendors
Factory owner Wu—the operator behind an Amazon store specializing in nail clippers—expressed enthusiasm about joining Haul despite not having received his invitation yet. He was informed that vendors like him would have to wait until at least year-end for their chance. At a recent gathering held in Foshan within southern Guangdong province, Wu and other cross-border sellers received insights from “Amazon business development representatives.” These agents focus on equipping Chinese vendors with strategies to effectively reach overseas customers.
Promotions Targeting US Consumers
On the American front, Amazon is vigorously marketing Haul by offering significant discounts alongside promises of seven-day delivery for 75% of orders placed through this new channel. As holiday shopping begins to ramp up, consumers can take advantage of a substantial 50% discount on all purchases made via Haul.
Competing with Established Low-Cost Rivals
Amazon’s entry into the budget shopping arena comes as it faces stiff competition from platforms like Temu and Shein which deliver inexpensive goods directly sourced from China across global online markets. These competitors have gained favor among US consumers through attractive price points such as $10 sweatshirts and $15 footwear items.
Products available on Haul are intentionally kept under a price cap of $20—most being less than $10—which offers an edge over other retail platforms’ pricing strategies. For instance, an iPhone 15 case adorned with festive designs can be purchased on Haul for just $2.99 compared to similar ones listed at $3.28 on Temu.
Strategic Sourcing and Control Over Pricing
Wu decided against listing his products on PDD Holdings’ Temu due to concerns over limited control surrounding product pricing—a benefit he attributes to operating within Amazon’s ecosystem instead. According to sources familiar with Amazon’s marketplace rules, there are strict criteria that must be met by potential sellers hoping to gain access; notably requiring good historical performance metrics and limiting eligible products’ weight to under one pound (approximately 453 grams).
An official representative from Amazon expressed optimism about expanding the platform: “We are just beginning our journey with Amazon Haul and eagerly await feedback from customers as we aim for ongoing enhancements in their shopping experience.”
Insights into Merchant Numbers and Distribution Hotspots
While exact numbers regarding participating vendors remain undisclosed by Amazon itself, research conducted by Yuguo Cross Border indicates that approximately 1,000 merchants have been initiated into this program during its first wave—still only representing a small portion of all sellers registered in China’s vast e-commerce landscape.
China hosts four pivotal merchant bases for Amazon according to Smartscout’s reports: Shenzhen tops this list boasting over 102,000 registered sellers who collectively generate upwards of $35 billion annuallys revenue; followed closely thereafter by Guangzhou—the capital city struggling against Putian (a shoemaking hub) in Fujian province—and Dongguan—a prominent city also located within Guangdong province.
Notably absent are many American locales except Brooklyn (ranked fifth), which accounts for around 11% of Shenzhen’s total seller population housing close to 12 thousand merchants navigating the competitive planes offered by online marketplaces like Amazon.
This article draws upon insights shared originally through established platforms focused comprehensively across Asia-Pacific dynamics—reflecting both opportunities presented amidst rising financial horizons along supply chains bridging two massive economies respectively entwined globally.