Amazon is setting its sights on expanding its discount storefront, Haul, in Europe later this year. The move comes as a strategic response to the growing influence of ultra-cheap Chinese e-commerce platforms like Temu and Shein. Haul, which debuted last year, is currently accessible only through Amazon’s mobile app and features items predominantly priced at $20 or less. This competitive pricing strategy aims to capture a broader audience seeking affordable products.
In 2023, Amazon transitioned to using recyclable paper bags, cardboard envelopes, and boxes for deliveries in Europe, reflecting its commitment to sustainability. However, the potential use of plastic packaging for Haul shipments could conflict with these environmental goals. Despite these sustainability challenges, Amazon remains focused on expanding Haul globally, with recent job postings indicating a potential launch in Mexico.
Reliance on Chinese Sellers and Influence of Influencers
A key feature of Haul is its reliance on goods from China-based sellers. This approach has drawn scrutiny in the past, notably from President Donald Trump. Nevertheless, Amazon continues to build out Haul, which remains in beta for U.S. users. The platform offers a range of products including makeup, apparel, and accessories, often priced affordably to attract cost-conscious consumers.
Amazon has also enhanced the Haul experience by incorporating curated storefronts from lifestyle influencers within the app’s homepage. This addition aims to leverage influencer marketing to drive consumer engagement and sales. Alongside this, the company has begun showcasing sponsored products in some Haul search results, allowing sellers to pay for premium visibility.
Over the years, Amazon has increasingly incorporated sponsored items into search results on both its desktop site and mobile app. As part of its strategy to monetize Haul further, Amazon is taking cues from its legacy online store, aiming to transform Haul into a more permanent fixture in its e-commerce ecosystem.
Despite its growing presence, Haul faces challenges related to packaging and logistics. Andy Jassy noted that Amazon has “certain number of items that are shipped in that way” for Haul, but this number is likely fewer compared to other Chinese e-commerce companies like Shein and Temu.
What The Author Thinks
While Amazon’s expansion of Haul into Europe and beyond is a strategic attempt to compete with the growing influence of ultra-cheap e-commerce platforms, it also raises concerns about the company’s sustainability goals. The reliance on plastic packaging, along with its competitive approach to pricing through Chinese sellers, could face increasing scrutiny from both regulators and environmentally conscious consumers. Nonetheless, Amazon’s plan to leverage influencer marketing and sponsored products could boost its appeal in the highly competitive e-commerce space.
Featured image credit: StockCake
Follow us for more breaking news on DMR