Expect “crazy low prices,” says Amazon as it launches Haul—a new low-cost online store aimed at competing with discount market leaders Temu and Shein. With a $20 price cap per item, Haul lets shoppers dive into affordable impulse buys with barely any room for regret—or so the idea goes.
Haul operates much like its competitors, churning out cheap, often unnecessary, items shipped almost entirely from Chinese warehouses. These retailers, but specifically, Temu, follow a sharp, effective formula: New products are teased through web ads, TikTok and influencer hype, produced in limited batches and only scaled up when they prove popular. This approach isn’t just ruthlessly cost-effective, it fuels an ever-evolving cycle of producing exactly what shoppers want.
Retailers like Temu and Amazon Haul are highly addictive
Powered by access to your personal user data, these platforms are relentless in uncovering and promoting whatever you’re browsing or discussing online. That’s part of the problem—shopping on Temu can be a gambling binge in disguise. You can even earn credits by convincing your friends to join in on the experience. Enticed by seemingly impossible prices, shoppers often fail to make the rational choice to simply close the tab.
“Temu is as addictive as sugar,” retail analyst Neil Saunders told the BBC. According to Saunders, Temu “gives consumers a little dopamine hit and keeps them coming back for more.” A big part of Temu’s addictive appeal lies in the gamification of its interface—everything is labeled as “top-rated” or a “best seller,” so-called “free” items are constantly flaunted (even though they aren’t really free) and the “original price” listed is almost always wildly inflated. Suddenly, you’re $3 down for a keychain flashlight.
Despite concerns over quality and safety, Temu’s popularity keeps skyrocketing. Two in five Americans claim to have purchased on the platform, and many seem to be loving what they get.
However, debates persist over Temu’s sale of potentially illegal products and products containing high levels of toxic substances, raising questions about how products are manufactured before they reach the doorsteps of excited shoppers. The full environmental impact of Temu remains unclear, with executives failing to publicly disclose related data. Yet, we do know a bit more about Shein’s footprint: The company reportedly generates approximately 6.3 million tons of carbon dioxide annually.
The hidden cost of discounted retail
Shein may be aiming to cut its greenhouse gas emissions by 25% by 2030, but its environmental goals are quickly being overshadowed by more pressing ethical issues. Along with Temu, Shein is under heavy scrutiny for allegations of forced labor and exploitation within their supply chains. As online capitalism thrives, the darker realities of human rights abuses remain a troubling, if often overlooked, aspect of the fast-fashion and retail industry. With nearly every product from Temu, Shein and Haul produced and exported by China, there’s a troubling lack of transparency about what we’re buying. This has posed a significant challenge for U.S. border and security officials, who are increasingly concerned about the influx of goods made with forced labor.
In December 2021, the Uyghur Forced Labor Prevention Act (UFLPA) became law, barring products made with forced labor from Uyghurs and other Muslim ethnic groups in China’s Xinjiang region from entering the U.S. However, a year later, loopholes in the law were uncovered, and reports revealed that garments shipped by Shein were still being made with cotton sourced from Xinjiang, where prisoners endure forced labor, abuse and intense surveillance. A House Committee has also called out both Temu and Shein for allegedly utilizing forced labor from China’s Xinjiang region. In particular, Temu has come under fire for lacking a system to ensure compliance with the Uyghur Forced Labor Prevention Act.
Amazon’s opportunity: Create a sustainable, ethical alternative to exploitative online retail
Amazon has the chance to do things differently by offering a service that is sustainable, ethical and free from the guilt of unknowingly buying goods made through exploitation. But the reality is, most American sellers won’t even be able to compete and sell on Haul—Chinese manufacturers will always have the advantage on price. They leverage “de minimis” exemptions, which let low-cost goods (up to $800 per item) enter the U.S. without incurring customs duties or taxes. Amazon can’t do much about this; it’s built into the low-cost model, making it nearly impossible for local sellers to keep up.
Even though Temu has announced plans to onboard local sellers, there is little hope for them to compete with China—boasting a labor-rich population with a comparative advantage in production capability and technological expertise. In 2020, China’s gross manufacturing production was determined to be three times that of the United States.
Amazon Haul is open for business
It may be an unlikely and somewhat far-fetched notion for a corporation already grappling with global and widespread concerns over worker safety and exploitation, but Amazon could make significant strides if it commits to offering a low-cost service that prioritizes ethical practices. Even better, Amazon could start by addressing growing concerns that the e-commerce giant is already selling products that are either counterfeit or artificially generated. A report from Modern Retail revealed that Amazon Haul has started posting AI-induced product images “if not outright hallucinations.”
“When Amazon does a new initiative, they’re focused on the success of the new initiative and not focused on any rules or guidelines,” Bernie Thompson, founder of Plugable Technologies, told Modern Retail. Lesley Hensell, co-founder of Riverbend Consulting, echoed this sentiment to Modern Retail, noting that the rise of images violating Amazon’s strict rules “degrades Amazon as a platform.”
Amazon Haul is now live, available only through the Amazon mobile app—but remember, every purchase comes with a cost—to your wallet and on a global scale.
Photo by Anete Lusina/Pexels.com
