E-commerce giant Amazon (AMZN) has rolled out a low-cost shopping option in the U.K. to fend off a step-up in competition from Chinese rivals following President Trump’s tariff tirade.
Full Service in Coming Weeks
Amazon said it had chosen the U.K. as the second market to roll out its mobile-only shopping service Haul following its launch in the U.S. last year.
Haul offers customers thousands of products for £20 or less, with the majority under £10, Amazon said. The service will also have free delivery on all orders worth over £15, while shoppers can receive an extra 5% off their order when spending more than £50.
Amazon will begin Haul’s foray into the U.K with a so-called beta test to select customers when they next update their shopping app. The intention is to then roll out the service for all customers “over the coming weeks.”
John Boumphrey, U.K. country manager of Amazon, said the move was partly in response to the growth in consumer uncertainty over their personal finances and the wider economy.
“We are constantly working to provide the best possible shopping experience for customers, and this is another way to offer low prices on a wide selection of products. Now more than ever we know our customers are looking to save,” he said.
Chinese Firms Switch Attention to Europe
It is also likely to help Amazon cope with increased competition from low-cost Chinese rivals such as PDD Holdings (PDD) owned Temu and fashion retailer Shein.
According to a Reuters report the two Chinese firms have boosted their spending on digital ads in Europe in April, a shift away from the U.S. given the new high tariff duties.
Shein and Temu’s ad spending rose the most in France and the U.K. compared to other European countries. Shein boosted spending 35% in France and the U.K., while Temu increased by 40% and 20% month-over-month, respectively.
In the US, the Haul platform became the center of White House criticism last month after reports that Amazon planned to list tariff costs on the service.
Amazon later said it would not detail the costs but that workers at Haul had briefly looked at itemizing this on the platform but ultimately decided against the move.
Is AMZN a Good Stock to Buy Now?
On TipRanks, AMZN has a Strong Buy consensus based on 49 Buy and 1 Hold rating. Its highest price target is $288. AMZN stock’s consensus price target is $241.40 implying an 29.23% upside.
