Everything costs less than $20 at Amazon's newest store

new York
CNN
—

Amazon is targeting retail rivals Shein, Temu and TikTok Shop with a new deeply discounted store that sells a wide range of products for $20 or less.

The mobile-only experience, called Amazon Haul, launched on the Amazon app on Wednesday and features everything from fashion accessories to home goods to clothing and electronics.

Haul is Amazon's answer to Chinese marketplaces, which have seen rapid growth in the U.S. from cost-conscious shoppers looking for affordable products, said Neil Saunders, managing director of retail at GlobalData.

“The value retail segment has been a key growth area in recent years, and while Amazon's main site has a good reputation for value for money, its wide offering means it is not primarily viewed as an everyday low-price destination,” he told CNN.

Amazon said in an announcement that a “majority” of Towing Items cost less than $10, some even less than $1. For example, there's an iPhone case for $1.79, a tablecloth for $4.99, and memory foam slippers for $9.99.

However, the low prices have the disadvantage that delivery of the items can take one to two weeks. And shipping is only free for orders over $25, orders under that threshold will incur an additional fee of $3.99. Additionally, the store only accepts returns on items that cost $3 or more.

Amazon said the company “verifies the products offered by sellers in Haul so that customers can be assured that they are receiving products that are safe, authentic, and compliant with applicable regulations.”

Shein and Temu were recently targeted by US regulators in a planned investigation into the sale of “deadly products for babies and young children.” Two executives at the Consumer Product Safety Commission want to investigate how companies are complying with safety regulations.

Amazon said Haul was created because it hears from customers who want “extremely affordable products, even if some of them take a week or two to arrive.”

Saunders said there were fears that Haul could cannibalize sales from its flagship site, but that it was “better that Amazon could cannibalize its own sales than let competitors take over,” and the storefront could appeal to younger consumers Proving popular among enthusiastic buyers of Amazon competitors.