Updated on Nov. 14, 2024, 1:36 p.m. EST, this article has been revised to include a statement from a representative at Amazon.
Amazon is venturing into the world of budget-conscious, trend-led online retail, launching a venture aimed at rivaling Shein, as announced in a recent statement. Given Shein’s meteoric rise in sales, it’s not hard to see why Amazon, under the ownership of Jeff Bezos, is keen to challenge them in the cutthroat arena of inexpensive, fashion-forward e-commerce.
Despite concerns about its labor conditions, environmental footprint, and product safety, Shein has proven itself to be a formidable competitor in the online retail space. In 2023, the fast-fashion giant raked in over $32 billion in global sales, marking a nearly 42% year-on-year increase. Shein also made over $14 billion in US sales alone, as per data from EcommerceDB (ECDB). This puts them ahead of both Walmart.com and Amazon.com, both of which reported sales ranging between $9 and $12 billion, according to ECDB.
The ECDB report states, “In terms of online fashion revenues, Amazon now lags behind both Shein and Walmart.”
Amazon’s new budget-friendly retail venture is dubbed ‘Haul’. Haul, the latest value-for-money online store from Amazon, promises to keep prices under $20, with most items coming in under $10. The press release from Amazon gives a glimpse of some of these affordable offerings:
– A necklace, bracelet, and earring set for $2.99
– Two kitchen tongs for $4.99
– An iPhone 16 case for $1.79
– A belt for $1.99
– A three-piece trimmer razor set for $2.99
To qualify for free delivery, orders need to be $25 or more. However, customers should note that Haul’s delivery isn’t as speedy as Amazon’s regular service, with timeframes ranging from one to two weeks.
Dharmesh Mehta, Amazon’s VP of worldwide selling partner services, said, “Our customers value finding quality products at extremely low prices. We’re constantly looking for ways to collaborate with our selling partners to offer products at unbeatably low prices.”
The mass production of cheap products, such as those offered by Shein, has drawn criticism for its environmental impact. Wired has reported that Shein’s rapid production model contributes significantly to carbon emissions.
When asked how it plans to address this issue, an Amazon representative stated, “Low-priced items are a staple of our business, and we consistently strive to identify opportunities that will further our progress towards our Climate Pledge of achieving net-zero carbon emissions by 2040. With Amazon Haul, we’ll assess its impact, like all our operations, and work towards mitigating it similarly.”
“We’re continuously working to prevent, manage, and reduce waste across our business, including operational and customer waste, like packaging and retired products. We aim to prevent waste through innovation, design, and operational efficiencies. All plastic air pillows from delivery packaging used at our global fulfillment centers have been replaced with paper filler. Since 2015, we’ve reduced the average per-shipment packaging weight by 43% and avoided over 3 million metric tons of packaging.”
As of now, Haul is in its beta phase and can be accessed exclusively on a mobile app.
