landscape, where price-conscious consumers are increasingly drawn to budget-friendly alternatives. However, industry analysts remain divided on whether Amazon can effectively compete in this ultra-low-price segment while maintaining its existing operational model. “Amazon isn’t structurally optimised for ultra-low-cost competition. Its vast logistics networks, diverse offerings, and focus on convenience and selection make it a powerhouse, but not necessarily a low-margin competitor,” Unique Robinson, senior account director, marketing and growth strategist at Hero Digital, wrote in her newsletter.  Meanwhile, according to Emma-Amazon Bagley, founder and director of marketplace consultancy company Zeal, Amazon’s “A-to-Z Guarantee” – which covers product condition and protects against damaged, defective, or misrepresented items – sets it apart from competitors. “So if the trust, availability, fast delivery and low price are all there on Amazon, it seems they have a real chance against the discount giants like Temu and Shein,” Bagley said.  Amazon Haul features fashion, home, electronics and lifestyle products, all of which are under Amazon’s A-to-Z Guarantee. While offering free shipping on purchases of US$25 or greater, the delivery time could take longer than a week.  Critical roadblocks The question is whether this launch can change the dynamics of budget e-commerce. Unlike people’s expectations, the Haul model has faced sceptical reactions as the platform failed to represent significant price advantages compared to its long-established rivals. Robinson said while Haul might initially attract attention, it risks diluting Amazon’s brand value over time. This could lead to customers perceiving lower quality, becoming less willing to pay for Prime memberships and other Amazon services, and ultimately result in decreased market share.  The timing of the launch may also be unfavourable for Amazon, as US and European regulators are tightening restrictions on a loophole that currently allows imports under US$800 to bypass tariffs. Additionally, there are concerns about Haul’s sourcing model, which similar to Temu and Shein heavily relies on Chinese manufacturers and suppliers, according to The Wall Street Journal. This dependency could expose Amazon to potential supply chain disruptions and increased regulatory scrutiny, particularly given the current geopolitical tensions. The platform’s success may ultimately hinge on its ability to diversify its sourcing strategy while maintaining competitive pricing. “It’s a little bit too early to know what the next administration has in store for foreign retailers and e-commerce platforms. Right now I think platforms and sellers are all waiting to see in what form tariffs are likely to materialise,” Benjamin Cavender, MD at China Market Research Group (CMR), told Inside Retail.  The evolving regulatory landscape adds another layer of complexity to Amazon’s venture into budget e-commerce. While established players navigate these uncertainties, the competitive dynamics of the market continue to shift with the emergence of new platforms and business models. While Temu and Shein are often mentioned as the main competitors in the budget e-commerce space, with the growth of social e-commerce, TikTok Shop is rapidly gaining popularity in the US. Launched in September 2023, TikTok Shop already boasts more than 150 million US users.  According to Statista, the US e-commerce market is estimated to generate US$1.2 trillion in revenue this year. By 2029, US consumers’ appetite for online shopping is forecast to bring in $1.8 trillion.  Further reading, How Temu and Shein drive up Black Friday marketing costs for US retailers.