Amazon (amzn)) It took a bold move to compete with the Chinese market later last year. Both apps were gaining popularity due to their significantly lower prices.
Temu sells products at a wide range of prices, from $1 to $50, while Shein sells items between $5 to $50.
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To ensure that customers don’t flock to these markets, Amazon has announced Amazon Haul’s in-store. This storefront sells non-branded products priced under $20 in categories such as home, lifestyle, fashion, electronics and more.
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When first introduced, Amazon said most of these items shipped from Chinese sellers would be sold for under $10 and priced at $1.
However, President Donald Trump’s recent tariff announcement appears to have pushed Amazon to bring about a major change in the ultra-stable storefront.
Nathan Stark & ​​Sol;Getty Images
Amazon Haul is making a big difference
A new section on Amazon labelled “Brand Faves” allows customers to shop for name brand items such as Champion, Adidas, Steve Madden and more. New Report From the information.
Some of these items are available for sale for over $20. For example, the Champion women’s cropped t-shirt in store sells for $21.46, while the Huk Men’s Short-Sleeve Shats sells for $25.
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The Amazon transport changes come after Trump announced 10% “baseline” tariffs on April 2nd in all countries importing goods into the US.
But Trump changed his mind, increasing the previous 34% tariffs in China to 125%. He also suspended mutual tariffs for 90 days in all other countries, reducing them to a universal 10% rate.
Amazon responds to consumer concerns about tariffs
Many consumers are concerned about Trump’s tariffs, which could make those produced in China more expensive, especially those produced in China.
According to the recent investigation From Omnisend, 42% of Americans are opposed to new tariffs on Chinese goods, and 56% are worried that tariffs will raise prices.
Also, 29% of Americans said they would immediately halt or reduce purchases from Chinese sellers if prices rise. Over 20% of Americans have even said they would shop in the Chinese market unless the price hike was above 20%.
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“Consumers expect to see a price hike soon, especially in categories such as home appliances, beauty, children’s clothing, and household items. All categories are popular in Temu. “If there’s a reason for manufacturers to raise prices, they’ll do so, even if they have existing inventory.”
Amid growing concerns, Amazon reportedly has begun canceling orders for products made in China and other Asian countries
between Recent interviews Using CNBC, Amazon CEO Andy Jassy responds to these reports, claiming that the company’s top priority is keeping consumer prices low.
“As a team, whenever there is a threat of any kind of discontinuity, we have to think about what we can do to help our customers,” says Jassy. “So we’re doing everything we can to try and maintain prices for our customers as low as possible. We’ve made some strategic forward inventory purchases to make sense for our customers at a lower price.”
However, Jassy warned that Amazon’s third-party sellers could hand over additional costs to consumers due to customs duties.
“I think the sellers will pass that cost. They will give it a try. I understand why,” Jassy said. “I mean, depending on which country you are in, you don’t have an extra 50% margin that you can play with.
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