Topic of the Week - Amazon's New Service Struggles to Gain Traction
Amazon's latest service, Amazon Haul, is off to a slow start, despite its competitive pricing strategy. Launched in November, Amazon Haul aims to compete with Chinese marketplaces Temu and Shein by offering products at £20 or less, with most items priced at £10 or under.
According to a recent survey by Omnisend, only 16% of respondents use Amazon Haul at least monthly, lagging behind Temu's 28% and Shein's 23%. Additionally, TikTok Shop is gaining more traction among consumers than Amazon Haul.
Amazon's CEO, Andy Jassy, has expressed optimism about the service's performance, stating that it's "off to a very strong start." However, an Amazon spokesperson has acknowledged that the service is still in its early stages, saying that it's "just getting started."
Despite the challenges, Amazon Haul has some advantages, including its reputation for consumer trust. According to Omnisend research, Amazon products have an average of 50,000 reviews per listing, while Temu has an average of 1,500.
The service is also expanding globally, with plans to launch in Europe later this year. Amazon has also added storefronts from popular lifestyle social media influencers to the Amazon Haul homepage to attract more customers.
However, Amazon Haul faces a significant threat from the recent increase in tariffs on Chinese goods. President Donald Trump has increased the tariff on all goods imported from China to 20%, which could lead to price increases for consumers. Research from Omnisend shows that 42% of Americans oppose new tariffs on Chinese goods, while 56% are worried that tariffs will increase prices.
The impact of tariffs on Amazon Haul's competitors, Temu and Shein, could be significant. Temu's ability to offer near-identical products at lower prices may be compromised, leading to a shift in consumer behaviour. As a result, Amazon Haul may need to adapt its pricing strategy to remain competitive in the market.
Overall, while Amazon Haul is struggling to gain traction, the service has potential and is likely to continue evolving to meet consumer demands.
eCommerce Market Stats
See some statistics relating to this week’s topics in the eCommerce market below.
eCommerce industry stats
- Only 16% of respondents use Amazon Haul at least monthly.
- 28% of respondents use Temu at least monthly.
- 23% of respondents use Shein at least monthly.
- TikTok Shop is gaining more traction among consumers than Amazon Haul.
- Amazon products have an average of 50,000 reviews per listing, while Temu has an average of 1,500 reviews per listing.
That’s all for this week…
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