E-commerce Giant Seeks Global Growth as Ultra-Cheap Retail Segment Booms

Amazon is gearing up to expand its budget-friendly online shopping platform, Haul, beyond the United States. The discount storefront, designed to compete with Chinese e-commerce giants like Temu and Shein, is expected to launch in Europe later this year, according to sources familiar with the company’s plans.

The move comes amid intensified competition in the ultra-low-cost e-commerce segment, which has seen an explosion in demand for cheap fashion, accessories, and home goods. Amazon’s Haul, which debuted in November 2023, has remained in beta for U.S. customers but is now being positioned for a wider global rollout, including Mexico and other markets.

Amazon Haul: A Response to Temu and Shein’s Market Dominance

Amazon’s expansion of Haul is widely viewed as a direct response to the growing dominance of Shein, Temu, and TikTok Shop, which have disrupted the global e-commerce landscape with their deeply discounted products and flash sales model. These platforms—primarily China-based—have built a strong presence in the U.S. by offering rock-bottom prices on clothing, beauty products, and household items.

Like its competitors, Haul features ultra-cheap products, many priced under $20, with some items like $1 eyelash curlers and $2.99 cubic zirconia rings drawing budget-conscious shoppers. Haul also operates exclusively through Amazon’s mobile app, making it more integrated into the company’s existing e-commerce ecosystem.

Amazon’s Hiring Plans Hint at Global Expansion

Recent job postings suggest Amazon is fast-tracking Haul’s international rollout. The company was recently looking to hire a software development engineer to support a worldwide launch, according to a now-deleted listing on Amazon’s careers site. Another job opening for a senior product manager mentioned the company’s intention to expand Haul into Mexico.

While Amazon has yet to confirm specific details about the expansion, a company spokesperson said:
“We are always exploring new ways to work with our selling partners to delight our customers around the world with more selection, lower prices, and greater convenience.”

These developments indicate that Amazon CEO Andy Jassy’s leadership team has made Haul’s global expansion a strategic priority for 2024. According to internal company documents, Haul is set to “Go Big” both in the U.S. and internationally this year.

Challenges in Expanding Haul to Europe

While Amazon’s plans to launch Haul in Europe represent a major growth opportunity, the company may face regulatory and logistical hurdles, particularly around sustainability and packaging requirements.

Plastic Packaging Concerns: Unlike Amazon’s main e-commerce business in Europe, which transitioned to recyclable paper and cardboard packaging in 2023, Haul relies on plastic packaging for many of its shipments. This could put Amazon at odds with European Union (EU) sustainability regulations and consumer expectations.
Import and Tariff Regulations: Haul’s reliance on Chinese-based sellers may also attract regulatory scrutiny, especially as governments around the world look to tighten rules on low-cost imports.

Amazon will need to navigate these obstacles carefully as it scales up Haul’s operations in European markets.

Monetization Strategies: Sponsored Ads & Influencer Marketing

Beyond product sales, Amazon is looking to monetize Haul in multiple ways, following the playbook of its broader e-commerce business.

Sponsored Product Listings: Amazon recently began allowing sellers to pay for premium placement in Haul’s search results, similar to its main shopping platform. Advertising revenue on Amazon has grown rapidly, hitting $56.2 billion in 2024, and Haul is expected to contribute to this growth.
Influencer Storefronts: To drive engagement, Haul is featuring curated storefronts from social media influencers, such as TikTok creator Michaela Delvillar, who has over 150,000 followers. This mirrors Amazon’s strategy of leveraging influencers to boost sales and discoverability.

Regulatory Uncertainty: Will U.S. Trade Policies Impact Haul?

Haul’s expansion comes at a time when U.S.-China trade relations are under renewed scrutiny. Earlier this year, former President Donald Trump temporarily suspended, then reinstated, the de minimis rule, which allows duty-free imports of packages valued under $800 into the U.S. The rule is widely used by Shein, Temu, and now Haul to import products from China at minimal cost.

If the loophole is closed, as expected once U.S. Customs and Commerce Department officials implement new tariff collection systems, it could significantly impact the business model of companies relying on Chinese imports, including Haul.
Amazon CEO Andy Jassy recently acknowledged that some Haul products are shipped under de minimis rules, but suggested that Amazon is less reliant on the exemption compared to Temu and Shein.

If U.S. trade policies become more restrictive toward Chinese imports, Amazon may need to diversify Haul’s sourcing strategies to include more suppliers outside China.

Final Thoughts: Will Amazon Haul Become a Global Powerhouse?

Amazon’s expansion of Haul into Europe and Mexico signals its aggressive push to capture market share in the booming discount e-commerce space. However, the platform faces significant competition, regulatory challenges, and supply chain uncertainties as it scales beyond the U.S.

If Amazon successfully integrates Haul into its global operations, it could emerge as a formidable challenger to Temu and Shein in the ultra-low-cost retail market.
However, sustainability issues, tariff regulations, and changing consumer expectations in international markets could create hurdles for the platform’s growth.

As Haul moves toward a full-scale international launch, Amazon will need to fine-tune its pricing strategies, logistics operations, and compliance measures to maintain its competitive edge while navigating a rapidly evolving e-commerce landscape.