Amazon takes low-cost e-commerce service global

By Arriana McLymore

(Reuters) -Amazon.com on Friday expanded the reach of its low-cost e-commerce service to 14 additional markets and said it will call it Amazon Bazaar. The new app is part of a push to compete with Chinese rivals including Shein and PDD Holdings' Temu to sell $10 dresses and $5 accessories in international markets. 

Sweeping import tariffs imposed by U.S. President Donald Trump have dented consumer sentiment, especially for lower-income groups, who often seek out cheaper deals.

The new app is similar to Amazon Haul, the budget-friendly shopping section within the Amazon app, launched last year. Amazon Bazaar will deliver a majority of products priced under $10 and some as low as $2, ranging from home goods to fashion, according to the e-commerce giant. Some of the newer markets for the low-cost e-commerce service include Hong Kong, the Philippines, Nigeria and Taiwan, it said. 

"Amazon Bazaar's expansion is an important step in Amazon's international expansion," said D.A. Davidson & Co analyst Gil Luria. "Amazon has only entered a market when it believed it can scale up to a level where it delights consumers and builds a profitable business."

Luria said Amazon often takes years to achieve profitability when it enters new countries and markets. The company reported third-quarter international revenue of $40.9 billion, up 10% from the year-ago period, excluding the impact of foreign exchange.

"If it can build a business selling a small selection of very low-cost items at an attractive service level, it could expand beyond the core 23 markets to nearly every other country in the world," Luria said. 

Shein and Temu have also ramped up expansion outside the U.S. Shein now operates in more than 160 countries including the U.S., Brazil, Ireland, and Southern China, according to its website. Temu ships to at least 70 countries. 

The U.S. operations of both companies were dealt a blow when the Trump administration banned the use of de minimis, a trade exemption that allowed packages valued at less than $800 to enter the country duty-free.  

Amazon launched Haul in the U.S. in 2024 and has since expanded the in-app service to the UK, Germany, France, Italy, Spain, Japan and Australia. 

(Reporting by Arriana McClymore in New York and Anuja Bharat Mistry in Bengaluru; Editing by Anil D'Silva and Matthew Lewis)