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Amazon has unveiled a cheap new online marketplace in Australia as billionaire boss Jeff Bezos hopes the “trustworthy” brand can compete against the exploding popularity of Shein and Temu.
Amazon Haul was rolled out in Australia late last week, offering hundreds of thousands of products under $25 that are being coupled with enticing promotions and sales.
“Australians seek out value and convenience when they shop online, and we’re excited to provide more options through the shopping app they already know and love,” Amazon Marketplace Australia Manager Amit Mahto said.
Haul items are not eligible for Amazon Prime delivery and are shipped within about two weeks with a 15-day return window.
Amazon is running several promotional sales to successfully launch Haul in Australia, like limited-edition $1 flash deals, an up to 80 per cent off sale and an under $5 category.
According to Swinburne consumer expert Bo Pang, Amazon is trying to compete against the rise of cheap online marketplace giants Shein and Temu.
“They’re actually getting a lot of momentum in terms of getting new customers in,” he said.
“But if you look at the models, Amazon is doing this traditional platform, but Temu and Shein are competing with the ultra-low-cost products, so they’re actually targeting different audiences.”
Roy Morgan research from last year found that two million Australians purchased at least once from Shein, and 3.8 million Australians purchased at least once from Temu.
“I can’t think of another retailer that has seen a hike of 30 per cent in customers in such a short time, especially now, other than Amazon, who is already mounting a fight back against these platforms at the global level,” Roy Morgan Head of Retail Research and Social and Consumer Trends Laura Demasi said at the time.
Roy Morgan research in May, however, found a growing distrust of the brands.
Temu was the seventh most distrusted brand among Australians, while Shein was the 15th most distrusted brand.
Amazon has attempted to differentiate Haul, branding it as a “trustworthy shopping experience”.
“All products on Haul go through all relevant Amazon checks so customers can be confident they’ll receive products that are safe and compliant with all applicable regulations and Amazon policies,” Amazon said.
The federal government regulates companies operating in Australia to ensure they meet the consumer protection and product safety rules.
But for companies that have third-party sellers directly shipping items to individuals, Pang said compliance becomes virtually non-existent.
“It’s going to be shipped out from somewhere in China, and then they get shipped here in Australia, so it’s going to be really hard for regulators to apply all these compliance checks,” he said.
Concerns have also been raised about the negative environmental impacts of cheap plastic products, which Pang said are usually thrown away within three months and accumulate in landfills.
Pang, however, believes Amazon’s brand could help raise the standards across other cheap online marketplaces.
“I think they’re going to leverage from their own brand image, which is reliable, which is getting good customer service, and they can hopefully introduce some level of compliance in terms of product quality,” he said.
“I think the end game here is not competing with price, rather than competing with value for money. So reasonably priced, but good quality.”
Shein and Temu said they require their sellers to comply with local laws and standards.
A Shein spokesperson said the site also has a code of conduct. If any non-compliant products are discovered, Shein removes them from the website while the company investigates.
A Temu spokesperson said it has a quality assurance system that includes vetting sellers and product listings, physical spot checks, monitoring and enforcement action.
Temu is also looking to be a signatory to the ACCC’s voluntary online product safety pledge.