Shopping at regular malls or in person at a local boutique became a weekend routine for many Americans growing up.
However, times change, and in today’s technology and trend-obsessed society, in-person shopping must compete with the options and convenience enabled by online shopping.
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Amazon was among the first to lead this online shopping revolution, making it easier than ever for consumers to buy whatever product they needed and shipping it straight to their doorstep.
Although Amazon was once the top online retailer worldwide, its throne has been challenged by Temu and SHEIN.
These Chinese e-tail giants have taken over the online shopping market by selling a wide range of products for insanely low prices. Now, TikTok Shop is starting to catch up with them, thanks mainly to Gen Zers who have become obsessed with its trendy and inexpensive assortment of nearly everything.
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Because of this massive shift in consumer trends and to better compete with its rivals, Amazon created Amazon Haul. This shopping experience allows customers to find a wide range of products at more affordable prices, with many under $20.
Even with this budget-friendly extension to Amazon’s business, Temu and SHEIN have grown astonishingly, taking market share away from Amazon.
However, with the de minimis exception for Trump’s high China tariffs set to expire in only a few days, Amazon might get the boost it needs to regain its throne.
Amazon Haul makes sneaky moves amid tariff implementation.
Image source: picture alliance/Getty Images
Trump declares a national emergency and puts tariffs on foreign goods shipped to US
Since the beginning of his second presidential term, President Donald Trump has stated his commitment to encouraging the production and purchase of American-made products.
In February, President Trump proposed implementing additional tariffs on all goods imported into the U.S. from Canada, Mexico, and China. However, two months later, he declared a national emergency and announced new tariffs on products imported into the U.S. from multiple countries, including an additional 10% baseline tariff.
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Trump changed course again within days, stating he would pause the 10% additional global “reciprocal” tariff on many countries for 90 days, except for China, since it retaliated with an 84% tariff on American products.
China’s exemption expires on May 2, and beginning that day, all packages from China to the U.S. with a value of $800 or under will be subject to a 120% tariff equal to the value of the shipped goods or a $100 fee per package, increasing to $200 in June. This tariff could be higher depending on the postal service used.
Amazon Haul might get an advantage on tariffs over Temu and SHEIN
Despite the growing competition, Amazon (AMZN) has remained a top e-tail giant. It has its own warehouses and packing and distribution centers domestically and worldwide, allowing it to ship and store products from abroad in bulk.
On the other hand, Temu and SHEIN ship their products directly to consumers daily and more often face an individual clearance process when packages arrive at U.S. customs.
No matter the distribution and shipping logistics of either company, higher tariffs on China-made products will impact them. However, this also means they will have to increase prices to sustain profits, putting them on a more even playing field.
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President Trump has switched gears on tariff implementation multiple times, leaving uncertainty regarding the future of these Chinese e-tailers and other businesses that depend on foreign goods.
“What Amazon, and anyone else, can do is try to *avoid* tariffs by shifting supply chains and adjusting their business model. In the case of Amazon Haul, this involves switching the focus to selling goods in U.S. warehouses,” said GlobalData Retail Division Managing Director Neil Saunders in the comments section of RetailWire.
“However, prices will be higher than stuff directly sourced from China,” Saunders said. “If new inventory is brought over from China (even in bulk), it will still be subject to tariffs, and the products being supplied even from the U.S. may have higher post-tariff prices as some of their input materials might be imported. Of course, these issues also impact Shein and Temu, so they don’t put Amazon Haul at any distinct disadvantage,” he added.
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