Amazon has introduced its "Haul" storefront in beta, a strategic move aimed at countering the rising influence of fast-fashion competitors Shein and Temu, according to Bank of America (BofA) analysts.

Available within Amazon's mobile app, Haul offers a wide selection of budget-friendly items across 35 categories, including apparel, home goods, and electronics. With ultra-competitive pricing, Haul features products like $1 eyelash curlers, $3 iPhone cases, and $14 fleece jackets, positioning itself as a viable alternative to Shein and Temu.

BofA notes that Amazon’s established logistics network could offer greater insulation from shipping cost challenges. However, the platform may be less competitive on orders below $25, where Shein and Temu attract customers with free shipping.

Shein and Temu currently hold about 2% of the U.S. eCommerce market, contributing to a 1-point decline in Amazon’s sales over the past year. Amazon aims to regain this lost share with Haul, potentially adding a 1-point sales boost by 2025 if the app gains traction.

Despite the advantages, Haul may face regulatory challenges. President-elect Trump is expected to implement tariffs on Chinese imports, potentially increasing product prices by 30% or more. In response, Amazon could consider alternative sourcing options or even exit the Haul storefront without significant financial impact if profitability becomes unsustainable under new tariffs.

BofA sees Haul as a low-risk initiative that strengthens Amazon’s market position with minimal financial exposure, reaffirming a Buy rating on Amazon's stock.