By CIO Insider Team
 

According to reports, Amazon is launching a low-cost online storefront featuring electronics, apparel, and other products priced at under $20. This is an effort to compete with discount retailers that have increasingly encroached on the e-commerce giant's turf.

The company said the new Amazon Haul storefront will primarily feature products for less than $10 and offer free delivery on orders over $25. According to documents the company provided to sellers, Amazon plans to ship its products from warehouses operating in China to U.S. customers. Amazon said haulage orders could arrive within one to two weeks.

Many of the products available in stores are typical of Shein and Temu, an e-commerce platform founded in China that has gained popularity recently.

Shein's core customers are young women who are attracted to the low-cost apparel sold on the site. Temu offers a wide array of clothing, accessories, kitchen gadgets, and other products for bargain-hungry shoppers.

Temu and Shein often get criticism over the environmental impact of the ultra-fast fashion business model the two companies follow. They have also faced scrutiny from lawmakers and regulators in the US and abroad over other issues, including some of the products on their platforms.

Amazon's new storefront, available only on shopping apps and mobile websites, features a brand-free product, a $ 2.99 phone case and hairbrush, and a sleeveless dress that retails for 14.99. The company is seeking to drive the home's message of value, with banners on its pages advertising crazy low prices and active wear that don't stretch your budget.

Dharmesh Mehta, Amazon's vice president of Worldwide Selling Partner Services says, “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. It's early days for this experience, and we'll continue to listen to customers as we refine and expand it in the weeks and months to come.”