Amazon has kicked off Haul—a fresh budget online marketplace, promising “unbelievably low prices” to take on rivals Temu and Shein. With a ceiling of $20 for individual items, Haul encourages consumers to indulge in low-cost purchases with minimal regret—at least, that’s the intent.
Haul functions similarly to its rivals, offering an array of inexpensive and often unnecessary products shipped predominantly from Chinese warehouses. Particularly, Temu utilizes a sharp, effective strategy: New items are promoted through online advertisements, TikTok buzz, and influencer excitement, produced in limited quantities, and only scaled up following demonstrated popularity. This method isn’t merely efficient in terms of costs; it also fosters a constantly adapting cycle of creating products closely aligned with consumer demand.
Retailers such as Temu and Amazon Haul are incredibly addictive
Leveraging your personal browsing data, these platforms tirelessly explore and advocate for whatever you’re viewing or talking about online. This constitutes part of the issue—shopping on Temu can seamlessly transform into a gambling spree. You can even earn credits by bringing your friends into the mix. Lured by deals that seem too good to be true, consumers often struggle to make the logical decision to simply shut the tab.
“Temu is as addictive as sugar,” retail analyst Neil Saunders remarked to the BBC. He noted that Temu “gives shoppers a brief dopamine rush and ensures they return for additional purchases.” A substantial component of Temu’s captivating allure is tied to the gamification of its platform—everything is marked as “top-rated” or a “best seller,” and so-called “free” items are continuously showcased (even though they aren’t genuinely free), with the “original price” often strikingly inflated. Suddenly, a compelling deal results in you paying $3 for a keychain flashlight.
Despite worries regarding product quality and safety, Temu’s popularity continues to rise. Forty percent of Americans report having made purchases on the site, with many seemingly pleased with their acquisitions.
Nonetheless, discussions linger around Temu’s sale of potentially illegal items and those containing hazardous toxins, prompting concerns about the product manufacturing process before they arrive at excited customers’ doorsteps. The complete environmental ramifications of Temu remain ambiguous, as company leaders have not publicly shared relevant data. However, we have gained some insight into Shein’s environmental impact: The firm is estimated to emit around 6.3 million tons of carbon dioxide each year.
The concealed price of discounted retail
While Shein aims to reduce its greenhouse gas emissions by 25% by 2030, its environmental aspirations are rapidly being overshadowed by more urgent ethical concerns. Like Temu, Shein faces substantial criticism for claims of forced labor and exploitation within their supply chains. As online capitalism flourishes, the grim realities of human rights violations persist as a troubling, albeit frequently disregarded, aspect of the fast-fashion and retail sector. With nearly all merchandise from Temu, Shein, and Haul produced and exported from China, a disturbing absence of transparency exists regarding our purchases. This presents a significant challenge for U.S. border and security officials, who are increasingly anxious about the surge of products made through forced labor.
In December 2021, the Uyghur Forced Labor Prevention Act (UFLPA) was enacted, preventing goods made with forced labor from Uyghurs and other Muslim minority groups in China’s Xinjiang province from entering the U.S. However, a year later, loopholes in the legislation were discovered, and reports indicated that garments dispatched by Shein still utilized cotton sourced from Xinjiang, where inmates endure forced labor, maltreatment, and strict surveillance. A House Committee has also criticized both Temu and Shein for allegedly employing forced labor from the Xinjiang region in China. Specifically, Temu has attracted criticism for its lack of a system to guarantee compliance with the Uyghur Forced Labor Prevention Act.
Amazon’s chance: Establish a sustainable, ethical alternative to exploitative online retail
Amazon holds the potential to adopt a different approach by providing a service that is sustainable, ethical, and devoid of the guilt associated with unintentionally purchasing goods produced through exploitation. However, the reality is that most American sellers may find it hard to compete on Haul—Chinese manufacturers will always maintain a pricing advantage. They exploit “de minimis” exemptions, permitting low-cost products (up to $800 per item) to enter the U.S. without incurring customs duties or taxes. This structural advantage is inherent to the low-cost model, rendering it nearly impossible for local sellers to keep pace.
Although Temu has signaled intentions of integrating local sellers, the outlook for competition against China remains bleak—given China’s labor-abundant populace and superior production capabilities. In 2020, China’s gross manufacturing output was found to be three times that of the United States.
Amazon Haul is now operational
It might seem unlikely and somewhat implausible for a corporation already facing extensive global scrutiny over worker safety and exploitation, but Amazon could achieve meaningful progress if it dedicates itself to launching a low-cost service that emphasizes ethical standards. Even more so, Amazon could begin by confronting rising concerns that the e-commerce titan is currently vending products that are either counterfeit or generated artificially. According to a report from Modern Retail, Amazon Haul has begun to share AI-generated product images “if not outright fabrications.”
“When Amazon initiates a new venture, their focus is on the initiative’s success without regard to any existing regulations or guidelines,” remarked Bernie Thompson, founder of Plugable Technologies, to Modern Retail. Lesley Hensell, co-founder of Riverbend Consulting, echoed this viewpoint to Modern Retail, emphasizing that the proliferation of images violating Amazon’s strict policies “diminishes the integrity of Amazon as a platform.”
Amazon Haul is currently live, accessible only via the Amazon mobile application—but keep in mind, every acquisition comes with repercussions—for your finances and on a global scale.
