The article was originally published for my column for Forbes on April 23rd, 2025.

Amazon is expanding its new low-cost "haul" store at a pivotal moment for cross-border e-commerce. Six months after launching as a mobile-only beta, the retail giant has extended Amazon Haul to desktop consumers while broadening its product assortment to include branded items. These are strategic moves that coincide with the Trump administration's implementation of punishing tariffs on direct-from-China shipments.

Launched in November 2024 as a shopping experience featuring products priced at $20 or less, with most items under $10, Amazon Haul initially appeared to be a direct response to the explosive growth of Chinese marketplaces like Temu and Shein. Now, as those platforms face existential threats from new tariff policies, Amazon appears to be doubling down on the low-cost channel.

How Incoming Tariffs Threaten Chinese Shopping Apps

The Trump administration's decision to end the de minimis exemption has sent shockwaves through the ultra-low-price shopping ecosystem. Starting May 2, packages from China valued at or under $800 shipped through the U.S. Postal Service will face a tariff equivalent to 120% of the goods' value or a fee of $100 per package, increasing to $200 in June. Items shipped through carriers like UPS will face tariffs as high as 145% of the goods' value.

These tariffs threaten the core business model of platforms like Temu and Shein, which rely on direct-to-consumer shipments from Chinese manufacturers to American consumers. Both companies have already posted notices to their websites indicating that consumers will face price adjustments starting April 25, though neither has detailed exactly how these costs will be passed along, according to The New York Times.

Amazon Doubles Down on ‘Haul’

Against this backdrop, Amazon's expansion of Haul takes on new significance. While Amazon hasn't commented specifically on tariff-related topics, the company has made several notable enhancements to the platform in recent weeks.

Dharmesh Mehta, Amazon's Vice President of Worldwide Selling Partner Services, announced on LinkedIn earlier in April that Amazon Haul is now available on desktop in addition to mobile, making it "even easier to shop."

Amazon is also diversifying Haul’s product mix. The experience offers "a wide selection of products—all priced $20 and under," including items as low as $1. The company announced that the selection now includes branded items discounted up to 80%, a new hybrid strategy that combines ultra-low-priced unbranded goods with recognizable brands at steep discounts.

This approach could help Haul appeal to price-sensitive consumers across different segments: those primarily motivated by absolute price points (the core Temu/Shein customer) and those seeking recognized brands at discounted prices. By combining these approaches within a single experience, Amazon potentially creates a more sustainable competitive position than pure-play ultra-discount platforms.

Amazon’s Fulfillment Advantage Vs Chinese Shopping Apps

A key differentiator for Amazon Haul in this changing landscape is its fulfillment model. Unlike Temu and Shein, which typically ship directly from Chinese manufacturers to American consumers, Amazon Haul leverages the company's established fulfillment infrastructure, with items "shipped by Amazon, sold by XYZ shop" - the basis of its successful Fulfillment by Amazon (FBA) program.

This distinction could prove critical in navigating the new tariff reality. While the specific implementation details remain unclear, Amazon’s domestic fulfillment network potentially shields Haul from the most severe impacts of the de minimis policy changes. Products that have already been imported in bulk and stored in Amazon’s U.S. warehouses may face different, or at least more certain, tariff treatment than direct-to-consumer shipments where tariffs are calculated on an individual basis by U.S. Customs and Border Protection.

Trust As A Competitive Advantage

In the midst of cross-border commerce uncertainty, Amazon is emphasizing trust and consumer protection as key differentiators. "Amazon screens the products sellers offer in Haul so customers can be confident they'll receive products that are safe, authentic, and compliant with applicable regulations," the company states in its most recent update.

All items available in Amazon Haul are also covered by "Amazon's longstanding A-to-z Guarantee" which "protects customers when they buy any item in our store and covers product condition, including if the item is damaged, defective, or not as described."

This emphasis on product quality and authenticity directly addresses a common concern among American consumers regarding ultra-low-priced imports. According to Salesforce’s November 2024 Consumer Sentiment Survey, 37% of those not buying from Chinese marketplaces cited payment security concerns as their primary reason for hesitation.

Shopping As Entertainment

One area where Amazon Haul still appears to be catching up is in creating the entertainment-focused shopping experience that has helped Chinese marketplaces thrive. Salesforce's research reveals that among the 21% of Americans who find marketplaces like Temu more enjoyable than traditional shopping, 47% specifically enjoy the "treasure hunt" experience.

While Haul has adopted some entertainment-oriented elements—including younger-skewing language, product deals labeled as "crazy," and liberal use of emojis throughout the interface—the experience still lacks the gamification features and social shopping elements that have made platforms like Temu addictively engaging for many consumers.

The decision to add Haul to the desktop experience, as well as fairly prominent positioning in both the app and desktop, indicates that Amazon sees potential in this channel. The virtual “real estate” on Amazon’s website and app is highly monetizable with advertising inventory: a large, growing, and highly profitable business for Amazon. Notably, the main page of the Haul microsite does not feature product ads or other display-type ads, suggesting that Amazon is making a different strategic play when it comes to Haul.

Looking Ahead

As the May 2 tariff implementation date approaches, the ultra-low-cost shopping landscape faces uncertainty. The coming months will reveal whether Amazon’s measured approach to ultra-low-cost commerce can compete with the addictive shopping experiences created by Chinese marketplaces, and whether American consumers are willing to pay higher prices for those experiences once the tariff reality sets in. For now, Amazon appears content to be positioning itself for potential market share gains if consumer shopping habits shift in response to new economic realities.