Amazon has commenced the trial of its low-price selection – Amazon Haul – as a response to competitions from Chinese marketplaces like Temu as well as customers’ increasing demand for value.

Amazon Haul offers fashion, home, lifestyle, electronics, and other products at “crazy low prices” of $20 or less, with most under $10. Orders over $25 will come with free delivery, and the typical shipping times are one to two weeks.

During the beta phase, only customers in the US with an updated version of the Amazon app have access to the low-priced section. Free returns are offered on purchases over $3 within 15 days of delivery.

The company also guarantees that the products are safe, authentic, and in the condition expected.

“Finding great products at very low prices is important to customers, and we continue to explore ways that we can work with our selling partners so they can offer products at ultra-low prices,” said Dharmesh Mehta, VP of Worldwide Selling Partner Services at Amazon. 

“It’s early days for this experience, and we’ll continue to listen to customers as we refine and expand it in the weeks and months to come,” Mehta added.

According to GlobalData MD Neil Saunders, the launch is a response to both the rise of Chinese marketplaces and consumers increasingly seeking value for money.

“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. 

“Haul addresses this by bringing together a wide selection of very low-priced products under one banner. It essentially allows consumers to have a focused shopping experience and to get a lot of bang for their buck,” Saunders elaborated.

The new offer will not “kill” Temu and other Chinese rivals, the analyst said, as their advantages in terms of assortment and the constantly changing mix of products will remain.

However, Amazon will have an advantage of familiarity and trust which it will look to exploit, he concluded.