Bank of America sees Amazon’ s discount storefront offering as a beneficial tool in fending off Temu and Shein. The e-commerce giant launched its Haul platform on the Amazon app, exclusively featuring products under $20. Shipping is free for orders of more than $25, or $3.99 for those that are less. Bank of America analyst Justin Post said Temu and Shein’s growth over the past year created a headwind of 1 percentage point for Amazon, according to an analysis of Bloomberg Second Measure data. He said Haul offers comparable prices with the two upstarts, making it a viable alternative. “In our view, Haul’s competitive offering and traction could mitigate these headwinds going forward,” Post wrote Wednesday in a note to clients. Amazon’s new offering comes as retailers have tried to compete with Temu and Shein, which are known for their low price tags. This battle is happening against a shifting retail backdrop, with the consumer becoming more “choosy” and focusing on experiences. To be sure, he said Amazon and these other companies could face obstacles if President-elect Donald Trump’s proposed tariffs on imports come to fruition. But Post said the use of third-party sellers made Haul specifically a “low-risk initiative, ensuring Amazon has a competitive offering with limited financial investment.” “Worst case, if new tariffs make the model uneconomical, Amazon could shift suppliers to other regions or close the storefront with limited financial impact,” Post said. Post, like the lion’s share of analysts polled by LSEG, has a buy rating on the stock. His $230 price target implies shares can jump 7.4%. That would mean shares have more room the run after a strong period. The stock has jumped around 40% in 2024, building on last year’s rally of more than 80%. AMZN YTD mountain Amazon, year to date
