Amazon prepares to compete with Temu and Shein!
Amazon plans to bring its discount store, Haul, to Europe to compete against rivals that sell at ultra-low prices, such as Temu and Shein. The company aims to enter the market through Haul with clothing, makeup, and accessory products, particularly those priced under 20 dollars. Creating new business opportunities in line with its global expansion strategy, Amazon is building a revenue model on the platform with sponsored products and influencer showcases. However, sustainability regulations in Europe and US customs policies targeting China-based e-commerce platforms could pose some challenges during Amazon's expansion process.
Amazon is preparing to launch its discount store, Haul, to the global market as a competitor to China-based e-commerce giants like Temu and Shein, which sell at low prices. It has been reported that the company plans to launch Haul in Europe within this year.
AMAZON IS BRINGING HAUL TO EUROPE
Launched in the US last year, Haul typically offers clothing, makeup, and accessory products priced under 20 dollars. Amazon aims to have Haul operational in Europe towards the end of 2025.
According to a report by CNBC, in line with the company's expansion plans, there were job postings for a software development engineer for the Haul team and a senior product manager for the Mexico launch, but the listings were removed shortly after. While Amazon did not comment on Haul, it stated that it is looking for ways to increase collaboration with sales partners.
WANTS TO COMPETE WITH TEMU AND SHEIN
China-based e-commerce giants have gained a wide customer base with ultra-low-priced clothing, makeup, and household goods.
Haul's product range is similarly offered at low prices. For example, the platform features 1-dollar eyelash curlers, 2.99-dollar cubic zirconia rings, and other affordable accessories. Currently in the beta stage, Haul aims to secure a permanent place in Amazon's online store.
COLLABORATION WITH INFLUENCERS
Amazon has implemented advertising strategies to generate revenue from Haul. The company allows sellers to highlight specific products by adding sponsored products to search results. A large portion of Amazon's 2024 advertising revenue is expected to come from this model. Additionally, by adding products selected by popular influencers to the Haul homepage, it has featured, for example, Michaela Delvillar's fashion picks.
However, Amazon's expansion plan in Europe may face challenges regarding sustainability. The use of plastic packaging in Haul shipments could conflict with Europe's sustainability goals. Amazon began using recyclable packaging in Europe in 2023.
News Source: 12punto
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