Amazon is slowing its roll and drastically lowering its prices on some items.
The e-commerce giant on Wednesday unveiled “Amazon Haul,” a shopping section of its app and site that features a selection of goods priced under $20, “with most under $10” and some as low as $1.
Discounts accrue as orders grow, too, “with 5% off orders $50 and over, and 10% off orders $75 or more,” and delivery is free on orders over $25, according to a company blog post. The option is currently in beta and available to U.S. customers once they refresh their Amazon app.
While the assortment of these low-priced items spans categories, including fashion, home, lifestyle, electronics and more, for these orders Amazon has departed from its usually swift fulfillment, saying on Wednesday that typical delivery times for “products with ultra-low prices” will be one to two weeks.
The experiment is an answer to Temu and other fast-growing Chinese marketplaces, which have prospered amid a consumer focus on affordability, according to GlobalData Managing Director Neil Saunders. The super-deep discounting could cannibalize Amazon’s other sales, but that could be preferable to losing share to these players, he said in emailed comments.
Recent research shows that U.S. consumers say they trust Amazon over Temu, but that they are nevertheless increasingly shopping at Temu. Some 17.5% of global respondents to a survey from marketing software company Omnisend said they think the Chinese site could overtake Amazon as the leading e-commerce platform.
“The value retail segment has been a major growth area over the past few years and while the regular Amazon site has a good value-for-money reputation, its wide offer means that it is not primarily seen as an everyday low-price destination,” Saunders said.
