March 10, 2025
Amazon Haul Struggles To Compete With Temu, SHEIN: Will That Change in the Near Future?
When Amazon Haul launched last November, the bar was certainly high to clear. Competitors in the space such as TikTok Shop, Temu, and SHEIN dominated the Chinese retail or e-tail landscape and had already laid claim to saturation within the established market.
A recent study provided by Omnisend, as detailed by Retail Dive, suggested that Americans were still experimenting with Amazon Haul and that SHEIN and Temu in particular had retained supremacy in the inexpensive imported good segment.
According to the data, while 24% of U.S. consumers had done business with Amazon Haul at least once, only 16% purchased items from that marketplace on a monthly basis. On the other hand, 23% of American consumers shopped SHEIN monthly, and 28% said they purchased from Temu on a monthly basis.
Things May Be Slow To Change, but Amazon Needs a Differentiator Badly: Expert
Greg Zakowicz, a senior e-commerce expert at Omnisend, told Retail Dive that part of Amazon’s relatively low market share could be chalked up to simply being a new entrant into the larger game. Because consumer behavior shifts slowly, it may take time for Amazon Haul to gain traction against both Temu and SHEIN.
Beyond that, however, Zakowicz underscored the notion that Amazon Haul may simply need to increase its focus on having solid differentiators to distinguish itself from other retailers with which it shares ground.
“If Amazon wants to make a real impact, they need to create compelling reasons for shoppers to choose Amazon Haul over existing options — whether through better customer experience, faster shipping, or exclusive deals,” Zakowicz said.
There is also the matter of increased trade tensions and tariffs between the United States and its trading partners, China particularly. This represents something of a double-edged sword, as Omnisend indicated, with Amazon Haul having debuted at a difficult time as tariffs come into play. President Donald Trump recently doubled tariffs on Chinese imports to 20%, and Americans are reorienting their buying power to something of a U.S.-centric position.
“This could put Amazon Haul in a tough position — if Chinese imports become more expensive, the marketplace may struggle to compete with established players like Temu and SHEIN while also failing to attract consumers who are now more inclined to shop American,” Omnisend stated.
For its part, Amazon leadership seemed pleased with current results, having already announced plans to expand Amazon Haul both domestically and abroad over the next few years.
“First launched in November 2024, Amazon Haul is just getting started, and we’re pleased with the positive customer feedback and response so far,” a spokesperson told Retail Dive. “We look forward to hearing from customers as we continue to innovate on and further improve the shopping experience.”
Discussion Questions
Will the imposed tariffs against China benefit Amazon Haul, even though many of its products are imported, due to consumer sentiment surrounding Amazon more broadly?
Is Amazon correct to indicate a positive outlook on Haul’s future, or has it failed to make the inroads necessary in the early going? What differentiators or levers can Amazon lean on to gain more significant market share?
Is the broader market for inexpensive Chinese retail goods in jeopardy, whether due to a consumer tired of said goods or for other macroeconomic reasons? Why or why not?
Poll
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Jeff Sward
Founding Partner, Merchandising Metrics
Mark Ryski
Founder, CEO & Author, HeadCount Corporation
Neil Saunders
Managing Director, GlobalData
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Haul is new and it is also not that well publicized or promoted, so it’s hardly surprising that it doesn’t have the pulling power of Shein or Temu. This is especially so since Temu spends a fortune on marketing. That said, I don’t think Amazon will be all that concerned. Haul is not their core business; it is the icing on the cake and a defensive move against the Chinese marketplaces. They will iterate and grow at a pace that’s right for them.
Tariffs against China could lead to increased costs for Amazon Haul’s imported goods, potentially resulting in higher prices for consumers. However, Amazon’s robust supply chain and diverse sourcing strategies might allow the company to mitigate some of these impacts by shifting production to other countries or negotiating better terms with suppliers. This adaptability could help Amazon maintain its reputation for convenience and reliability, even amidst rising costs.
Many customers might overlook higher prices due to their positive perceptions of Amazon’s convenience, reliability, and customer service. Additionally, consumers may also appreciate Amazon’s ability to provide a wide selection of products, which could mitigate concerns about price increases.
Amazon’s fast shipping options, such as same-day or next-day delivery, significantly enhance customer satisfaction by providing immediate access to desired products. This convenience often outweighs the consideration of higher prices, as customers value the ability to receive items quickly. As a result, the speed of delivery can be a critical factor in maintaining customer loyalty and mitigating any negative perceptions related to price hikes.
This trust in Amazon’s brand stems from its consistent delivery of quality service and products over the years. Consumers often feel confident that they will receive exactly what they ordered, quickly and efficiently. This strong brand loyalty helps Amazon maintain its customer base even when prices rise.
The earlier post on “Haul” described it as a “mobile only, discount site”; given that Amazon itself has the abilty to tailor price levels, and as I don’t really see an advantage to being mobile only, I struggle to get enthusiastic about this (So far I’m losing that struggle) It’s like Amazon does great with it’s core product, then seems determined to compromise it with every experiment.
Amazon was positive on ‘Go Stores’, enough said. Amazon was right to do, and continue to do Haul to maintain a place in the space, even if it’s a distant third. Amazon is very good at direct selling…they’ll find some sweet spots in the market. I suspect that TEMU and Shein are taking Haul seriously. Amazon needs to tap their 180M PRIME customers in the US and play to their strength. Inexpensive Chinese goods, and every other non-US suppliers’ goods, are going to cost more on this path. Once consumer demand turns negative, it’s hard to win it back. And it takes time. The thrash (“little disturbance”) in the stock market doesn’t help. There’s nothing good about these tariffs for retailers or consumers.
Amazon Haul is a mess and pretty pointless. It takes the very worst of Temu and Shein — misleading manipulated AI imagery of products that disappoint many customers when the pictures do not match the product, and ignores the addictive promotions and gamification that drives engagement on Temu and Shein’s platforms.
Haul’s product mix is where Temu was in 2023, limited and not that compelling, How many phone cases and kitchen gadgets can you buy? There are three well-developed and well-understood Chinese e-Commerce platforms. The heavily-female apparel-focused Shein, which is recently expanding into Temu’s mix of gadgets, electronics, and furniture accessories, and the male-focused AliExpress which is heavy on more costly electronics. All three of these are developing their close contacts with Chinese manufacturers that sell to domestic Chinese markets to find unique and interesting products. All three have far larger selections than Haul. Shein and Temu apps are just as common on many U,S, consumer phones as Amazon Shopping.
Amazon meanwhile has been building customer friction since the pandemic. Generous customer service policies have been pulled back, the promise of overnight shipping ended with the pandemic and is only gradually returning, and most of all customers have discovered a large portion of Amazon’s products can be found on Shein and Temu and AliExpress at 40-60% less than an Amazon, and they clearly prefer the lower prices over the inconvenience of waiting 7-10 days to get them from Temu, etc. Amazon sellers blame Amazon’s increasingly greedy fees and surcharges for the price difference, Some are moving off Amazon and on to Temu and even Tik Tok where they can charge less and still make substantial profits.
Anyone who has used Temu and Shein also understand it isn’t just about low prices, it is also the gamification that allows customers to earn substantial credits they can use on future purchases. It is very easy to leverage those credits on purchases that replenish that credit balance. Haul has nothing like this and has limited programs to target engagement. I suspect most of Haul’s customers are existing Amazon shoppers dabbling, along with those who never spent much time with Temu or Shein or soured on them for some reason.
I’ve always applauded Amazon’s willingness to probe and test the market. With apparently no fear of failure. Probing and testing is the key. In this case SHEIN and Temu proved the market was there. (Those monthly shopping statistics are staggering!) The question became whether or not Amazon could replicate the model and steal market share. When it was first announced I wondered if it was truly a long term venture, or a foot in the door pending resolution on de minimis duties. And now the whole tariff scenario throws all kinds of wrenches into the mix. But even when the de minimis rules are changed to create a level playing field (wishful thinking?), the factory direct model still has incredible efficiencies to offer both sellers and buyers. So I think the business model lives on. Then the question becomes whether or not it can be operated in a manner that is something other than a conduit for filling up landfills even faster.
Well, I knew Amazon was saying it would launch a low-price competitor to Temu and Shein, but I never even heard the name “Amazon Haul” until I read this piece. And…Temu now stores product in the US, so delivery is quite quick. And while I have never bought from Shein, I have to say, the product quality from Temu is very good for the price.
You know, you can’t be all things to all people. I think Amazon is finding that out. You can’t sell luxury dresses and cheap dreck and afford the advertising to all those different customers.
I personally think it’s a loser product line, but who knows? There are factors that might end up giving Amazon an advantage, which I won’t go into here, since i limit my politics to other platforms.
Amazon has the scale and logistics to compete, but winning over frequent shoppers takes more than just adding another low-cost marketplace. Shein and Temu have built strong followings through a mix of aggressive pricing, trend-driven inventory, and constant engagement through their large marketing investments. For Amazon Haul to stand out, it’ll need to offer something shoppers can’t already get elsewhere – whether that’s a better shopping experience, faster fulfillment, or exclusive perks.
The Amazon Haul experience is not comparable with the rest of Amazon. There are broad product categories but within each it’s more flea market than an organized retail environment. Prices are favorable for what’s offered but delivery timings are not the expected Amazon 2-day. Delivery is typically a week or more. Free delivery requires compiling quite the grab bag of low-priced items to hit the $25 minimum.
Poor marketplace actors have hurt the trust Amazon has built. Amazon Haul could further erode trust. The Haul experience comes across as very off brand for Amazon.