What does Amazon Haul say about consumer spending habits?

Ecommerce giant Amazon has recently launched Amazon Haul – a new shopping section specifically for low-priced items.

Currently available in the US, Amazon has set out to rival the likes of Shein and Temu, both of which are popular among consumers for their affordable prices and wide variety of items.

It’s no secret that these platforms are winning the fast fashion race, with Shein reporting $32.3 billion in worldwide sales in 2023, while Temu’s annual sales reached $15.33 billion. 

But does this new revelation contradict Amazon’s Climate Pledge and consumer preference for sustainability, or does it feed into the growing demand for fast and manufactured goods?

How is Amazon Haul different from its regular store?

Unlike the original Amazon website, Amazon Haul is designed for shoppers looking for affordable items – offering its own search, cart and checkout functionality.

Amazon Haul offers a store where every product costs $20 (£15.80) or less. The only catch is that orders will take a week or two to arrive, similar to Shein and Temu’s typical shipping times. Customers can also get 5% discounts on orders over $50 (£39.51) or 10% off orders over $75 (£59.27).

Dharmesh Mehta, vice president of Amazon’s worldwide selling partner services, said in Amazon’s announcement: “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.”

Will Amazon Haul come to the UK?

Currently, Amazon Haul is only available in the US and there haven’t yet been any announcements on whether it will launch in the UK or other countries.

The only problem is, the EU’s strict regulations could slow things down. Right now, Shein and Temu are subject to several of these rules, including the Digital Services Act (DSA) and rules on intellectual property rights.

For example, Shein is now classified as a “very large online platform” (VLOP) by the European Commission and is required to implement robust measures to prevent the distribution of illegal content and protect customers from harmful products. As a result, Shein must proactively identify and mitigate systemic risks, such as regularly reviewing its product listings to eliminate illegal offerings and establishing age verification systems to protect minors from unsuitable products.

On the other hand, Temu has previously been accused of several infringements against the EU’s consumer laws. An investigation by the Consumer Protection Cooperation (CPC) of national authorities and the European Commission revealed a number of misleading and “unduly influences” on customer purchasing decisions, including fake discounts, pressure selling, forced gamification, misleading information and fake reviews.

Does Amazon Haul contradict its principles?

While sustainability isn’t listed as one of Amazon’s core values, the company has its own “Climate Pledge”, which aims to reach net-zero carbon emissions by 2040. Amazon’s principles around sustainability have been questioned before, particularly after research discovered a 40% increase in emissions between 2019 and 2023.

However, the general notoriety around fast fashion’s environmental impact could also put Amazon Haul and the company’s Climate Pledge under questioning. According to research reported by Earth.org, the fast fashion industry is responsible for 10% of global carbon emissions, which is more than international flights and maritime shipping put together.

For example, popular items on Shein were reported to be mass-produced, and the manufacturers’ excessive use of virgin polyester and large consumption of oil had been producing the same amount of CO2 as around 180 coal-fired power plants – resulting in 6.3 million tons of carbon dioxide being released every year.

Meanwhile, Temu allegedly ships over 1.6 million packages every day and is predicted to generate 1 billion tons of packaging waste globally by 2050.

UK customer spending habits – expectations vs reality

UK consumers are allegedly becoming more conscious when it comes to their shopping choices. A report by PwC revealed that 9.7% of shoppers are willing to spend more for sustainable products or sourced goods, despite rising inflation and the cost-of-living crisis. 85% also reported experiencing first-hand effects of climate change in their everyday lives.

Additionally, 55% of consumers claim that they research a purchase before making it. Survey results reported by Heuritech also found that 67% of consumers consider the use of sustainable materials to be an important factor before purchasing.

But while statistics suggest UK shoppers are becoming more conscious in their purchasing, sales for Shein and Temu remain sky-high. Shein’s sales jumped by 40% to £1.5 billion in 2023, while Temu’s sales figures in the first six months of 2024 were estimated to be $20 billion. As of May 2024, Shein has 10.5 million monthly active users in the UK, while Temu was reported to have 15.6 million monthly users as of January 2024.

To top it all off, the fast fashion industry in the UK is expected to reach a revenue of £10.9 billion in the next five years. This suggests that while many UK consumers claim to become more conscious of their shopping habits, there’s still a significant demand for cheap and manufactured clothing and other goods.