Amazon Expands Haul to Challenge Shein and Temu

E-commerce giant bets big on ultra-cheap shopping

March 01, 2025

Dear Reader,

Amazon is ramping up its competition against Temu and Shein by expanding its discount storefront, beyond the U.S. The company plans to launch Haul in Europe later this year, marking a significant step in its bid to dominate the ultra low cost online shopping space.

Haul, which debuted last November, is Amazon’s answer to fast growing Chinese e-commerce giants. It offers makeup, apparel, and accessories, with most items priced at $20 or less. Now, Amazon is pushing to “Go Big” globally, according to internal reports.

Amazon’s Expansion Strategy

Recent job postings hint at Amazon’s larger international ambitions for Haul. The company had listings for:

  • A senior product manager in Mexico, signaling a future launch there.

  • A software engineer for global expansion, suggesting more countries will follow.

The move comes as Temu, Shein, and TikTok Shop continue to disrupt e-commerce with rock-bottom prices. Haul mimics Temu’s model, selling ultra-cheap goods like $1 eyelash curlers and $2.99 rings.

Challenges Ahead

Expanding Haul won’t be easy. Amazon faces:

  • Sustainability concerns – Europe has strict packaging rules, and Haul shipments rely on plastic, conflicting with Amazon’s eco-friendly pledges.

  • Regulatory scrutiny – President Trump is cracking down on the de minimis rule, which allows imports under $800 to avoid U.S. tariffs. Since many Haul products come from China, new rules could raise costs.

  • Profitability questions – Haul’s ultra-low prices raise concerns about Amazon’s ability to make meaningful profits from the platform.

Monetizing Haul

Amazon is already turning Haul into a revenue stream by:

  • Selling ad placements – Sponsored products now appear in Haul search results.

  • Partnering with influencers – Amazon has enlisted TikTok creators to curate fashion storefronts, driving engagement and sales.

Amazon’s push into budget shopping is a direct challenge to Shein and Temu, which have gained millions of loyal U.S. shoppers. But competition is fierce, and new tariffs could reshape the landscape.

With Amazon betting big on Haul’s global expansion, can it out maneuver China’s discount giants?

We’ll keep you posted

Street Fin Gazette