Amazon is launching a low-cost e-commerce service in the US to challenge Temu

(Reuters) – Amazon.com has launched a low-cost e-commerce service called Amazon Haul for some U.S. customers, offering them a selection of products for $20 or less, the online retailer said on Wednesday taking on Chinese firms PDD Holdings' Shein and Temu.

In August, Amazon CEO Andy Jassy said average selling prices were falling as customers switched to cheaper items and bought more essential goods.

The company said most products will cost $10 or less, with some as low as $1.

The new low-cost service will be available in its app and users will be able to search for “Haul,” the company said, adding that it will be available to customers the next time they update their Amazon shopping app.

(Reporting by Akash Sriram in Bengaluru; Editing by Shailesh Kuber)