Amazon Haul: New Opportunities and Challenges for Sellers

Amazon Haul operates as a specialized section within Amazon, focusing on offering daily consumer goods at remarkably low prices, often below $10. This includes a variety of items such as electronics, clothing, and household goods. For instance, prices for products can be as low as $1.79 for an Apple phone case or $5.99 for a wig brush. The haul is designed to attract budget-conscious consumers and is currently accessible primarily through mobile devices, featuring promotional messaging like “Incredible discovery, crazy low price!”

It is understood that Amazon Low Price Mall is currently a store invitation system, the system pulls the list, and the Merchandising Manager is directed to contact the invitation. Most of the invited stores have operating experience, higher ASIN numbers and sales, and more products meet the category, specification and price requirements.

Some sellers learned from the investment manager, there is the intention to enter the seller is worth paying attention to, because the follow-up in the long term, it is likely to be open to enter, but the specific form, requirements and time is not yet determined internally. But part of the investment manager has to sellers to collect their information, such as categories and do a good job ASIN, sellers are now operating in the way (store, boutique), the source of goods (own factories, cooperative factories, outsourcing), as well as other platforms operating experience information. Once open for investment, the investment manager will be the first time to screen and notify these sellers who meet the requirements.

On the news of Amazon Haul, the current Amazon official has not yet disclosed too much, but the sellers of low-priced products may cause a big impact. Is it a gospel or anxiety for sellers of low-priced products?

Sellers have reported that products in Amazon Haul can now be advertised and share rankings with those on the main Amazon platform. This capability allows new products to gain visibility quickly, with some even making it onto the new product lists shortly after launch. One seller noted that they are preparing to submit advertisements for their products, which will initially occupy the top two display positions on search pages.

Sellers participating in Amazon Haul have shared mixed feelings about its implications:

Competitive Advantages: Many sellers believe that being part of this initiative provides an opportunity to reach a larger audience due to Amazon's vast traffic. The ability to advertise is seen as a significant advantage, potentially increasing sales volume quickly.

Concerns About Returns: Some sellers have expressed anxiety regarding return policies associated with low-priced items. For instance, products priced under $3 cannot be returned for refunds, which poses risks for sellers if customers are dissatisfied.

Some senior sellers believe that sellers can do it if they have independent pricing rights for their products plus a platform with a large flow! In accordance with previous information, low customer orders refers to the selling price of less than 20 U.S. dollars and the weight of 1 pound, this product from China in the form of small packages directly to the hands of end consumers, and it only takes about 10 days, compared to the Amazon FBA distribution, although the delivery time is longer, but the headway and distribution costs save a large part of it.

The entry of Amazon Haul into the marketplace is expected to intensify competition among sellers. As Amazon continues to offer lower prices than its competitors—reportedly 14% lower than other major U.S. retailers—brands may face pressure to adjust their pricing strategies accordingly. This situation raises questions about brand loyalty and consumer expectations, as shoppers may become accustomed to lower prices across all platforms.

Pricing Strategy Implications

Sellers are urged to reconsider their pricing strategies in light of this new competition. Amazon Haul's pricing caps—such as $7 for ID covers and $20 for sofas—set a framework that may compel brands to either lower their prices or enhance their product offerings to justify higher costs.

Conclusion

Amazon Haul represents a significant shift in how products are marketed and sold on the platform. While it opens up new avenues for visibility and sales for participating sellers, it also introduces challenges related to pricing strategies, return policies, and overall market dynamics. As this initiative evolves, its impact on both sellers and consumers will become clearer, particularly as the year-end shopping season approaches.