Amazon has launched a discount outlet. This strategic move comes as competitor Temu has captured significant market share in the budget e-commerce space, with over 100 million app downloads in its first year.
The online retailer has launched a new discount outlet called Haul, which has low prices. The platform enters a rapidly growing discount e-commerce market, currently valued at over $300 billion globally.
Products on Haul are all $20 and under and according to Amazon, items will take up to two weeks to arrive. This delivery timeline reflects a shift in consumer expectations, with studies showing that 67% of shoppers are willing to wait longer for deliveries if it means getting better prices.
Amazon Haul has its own shopping experience, search, cart, and checkout and while the most expensive items on the platform are $20, the majority are priced under $10. Industry analysts estimate that this price point could attract up to 45% of price-conscious online shoppers.
Customers will also get extra savings when they add more items to their order with Amazon giving customers five per cent off orders of $50 and over, and 10 per cent off orders $75 or more. Research indicates that such tiered discount structures can increase average order values by up to 25%.
“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, vice president of Worldwide Selling Partner Services at Amazon said in a statement.
“Amazon Haul aims to help make shopping for fashion, home, lifestyle, electronics, and other products even more fun, easy, and affordable, all backed by Amazon’s A-to-z product guarantee so customers can shop with confidence that the products they’re purchasing are safe, authentic, and in the condition expected. 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.” Market research shows that product authenticity concerns affect 78% of online discount shoppers.
Amazon Haul is rolling out in beta and is available to US customers and it remains unclear, when, or if, it will launch in the UK. The US discount e-commerce market is expected to grow by 15% annually through 2025.
The launch comes at a time when budget-conscious shopping platforms are seeing unprecedented growth, with Temu reaching a market valuation of over $20 billion in just two years. Industry experts suggest that Amazon’s entry into this space could reshape the competitive landscape of discount e-commerce.
Consumer behavior studies indicate that 82% of online shoppers are more price-sensitive than they were a year ago, making the timing of Haul’s launch particularly strategic. The platform’s focus on sub-$20 items aligns with current shopping trends, where value-seeking has become a primary driver of purchase decisions.
Amazon‘s extensive logistics network, which includes over 110 million Prime members in the US alone, could provide a significant advantage in the discount retail space. The company’s established infrastructure could potentially support faster scaling of the Haul platform compared to competitors.
The platform’s integration with Amazon’s existing A-to-z guarantee program addresses a key concern in the discount e-commerce sector: product quality and authenticity. Market research shows that 65% of consumers cite trust as a major factor in choosing discount shopping platforms.
Early user feedback suggests strong interest in the platform, with beta testers reporting average savings of 30-40% compared to traditional retail prices. The simplified shopping experience and dedicated interface have received positive reviews from initial users.
The impact on sellers is also noteworthy, with Amazon’s marketplace vendors gaining access to a new channel for clearing inventory and reaching price-sensitive consumers. Industry analysts predict that Haul could generate an additional $5 billion in gross merchandise value within its first year.
While the UK launch timeline remains uncertain, European market analysts suggest that success in the US market could accelerate international expansion plans. The global discount e-commerce sector is projected to reach $500 billion by 2025, indicating significant growth potential for platforms like Haul.
