Amazon Launches New Storefront as Shein and Temu Prepare for Price Hikes

As Amazon recently disclosed, Shein and Temu pose the biggest long-term, existential threats to its business, even more than former rivals like Walmart and Target. In the face of all this increased competition, Amazon has introduced a new storefront, Amazon Haul. This new platform provides access to mass-produced, discounted, ethical alternatives in order to undercut fast-fashion giants like Shein and Temu at their own game on price.

Together, Shein and Temu have disrupted the global e-commerce landscape. In the last few years, each platform has exploded in use here in the U.S. Their business models, centered on the proposition of cheap bangles and bathroom mats, have brought each of these companies more than 70 million customers. The explosive growth of influencer advertising has been the key to making this reach so vast and effective for consumers.

The competitive landscape is shifting. As of April 25th, Shein and Temu have introduced U.S. customers to higher prices. This adjustment is largely due to increased tariffs on goods moving from China. President Donald Trump’s administration recently terminated such an exemption. This ZSC has allowed goods valued under $800 to enter the U.S. free of any duties or tariffs. The new tariffs are expected to disrupt the business models of both companies, which have relied heavily on low-cost imports from China.

Each day, that’s close to four million parcels, most of them coming from China. That past exemption has played a role in driving this surge. With the repeal of this policy, the cost advantages enjoyed by Shein and Temu will be dramatically altered. Consequently, both platforms are pushing customers to Shop Now before the cost of shipping goes up in the coming days.

Amazon Haul is a great example of this. They aim to exclude consumers affected by the latest round of increases. The new brick-and-mortar storefront features a wide array of discounted, donated products. In response, this move further entrenches Amazon as the leading alternative for cash-strapped shoppers.

Shein and Temu are already preparing to fight these changes. They have to figure out how to remain competitive despite all of these big companies’ costs going up because of tariffs. The effects of these tariffs could go beyond price, possibly leading them to change their business strategies in the U.S. market.