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Amazon Launches “Bazaar” in 14 Markets to Compete With Shein and Temu

Amazon Launches “Bazaar” in 14 Markets to Compete With Shein and Temu

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Amazon has officially launched Amazon Bazaar, a standalone budget shopping app, in 14 new markets across Asia, Africa, and Latin America — marking its boldest step yet against fast-growing Chinese rivals Shein and Temu.

The new platform offers products under $10, with some starting at just $2, covering categories from fashion and beauty to home goods and gadgets.

The rollout includes Hong Kong, the Philippines, Taiwan, Kuwait, Qatar, Bahrain, Oman, Peru, Ecuador, Argentina, Costa Rica, the Dominican Republic, Jamaica, and Nigeria — with more regions expected soon.

Amazon’s Response to Shein and Temu’s Global Surge

Bazaar builds on Amazon Haul, a low-cost shopping section launched in late 2024 as a direct response to Temu’s and Shein’s rapid expansion.

While Haul operates inside Amazon’s main app in established markets like the U.S., U.K., Germany, France, Italy, Spain, Japan, and Australia, Bazaar is a separate application targeting emerging economies.

Amazon had already introduced the Bazaar brand in Mexico, Saudi Arabia, and the UAE, where low-cost segments have seen double-digit growth.

The move underscores a broader strategy: reclaiming the price-sensitive consumer segment that Shein and Temu have dominated with aggressive pricing, gamified shopping, and ultra-fast logistics.

The Shein–Temu Effect: A Market Transformed

Shein now operates in over 160 countries, commanding roughly 40% of the U.S. fast-fashion market, while Temu’s gross merchandise value hit $15.3 billion in 2023, capturing 17% of the U.S. discount retail space.

In Europe alone, more than 115 million users made at least one purchase on Temu in the first half of 2025.
Amazon’s Bazaar launch is a direct response to this dominance — an effort to win back younger and budget-conscious consumers who have shifted toward mobile-first, discount-oriented platforms.

Timing: A Perfect Storm of Trade Tensions and Consumer Fatigue

Amazon’s expansion coincides with a sharp decline in U.S. consumer confidence, now near record lows due to economic uncertainty, prolonged government shutdowns, and renewed tariff pressures under President Donald Trump.

In May 2025, the U.S. government eliminated the “de minimis” import exemption — which allowed goods under $800 to enter duty-free — first for China and then globally.
The decision struck directly at Shein and Temu’s business model, which relies on direct-to-consumer shipments from Chinese manufacturers.

As import costs rise, Amazon is positioning Bazaar as a reliable alternative that balances low prices, faster shipping, and local compliance.

Faster Delivery and More Trustworthy Service

Unlike its Chinese competitors, Amazon promises two-week delivery or faster for most Bazaar orders and free 15-day returns.
The app supports six languages and major international credit cards, aiming to deliver a smoother, safer experience for consumers wary of long shipping times and inconsistent product quality.

Amazon says Bazaar will also feature localized logistics and simplified seller onboarding, enabling local merchants to compete alongside global suppliers.

Economic Context: Inflation and the Hunt for Affordable Goods

The timing of Bazaar’s debut reflects a global shift in consumer behavior.
With inflation and high import duties squeezing household budgets, demand for ultra-cheap products is surging.

In many emerging economies, Bazaar’s launch could offer both new income streams for local sellers and cheaper alternatives for consumers.
For Amazon, it’s also a chance to reassert dominance in regions where Chinese apps have captured attention through viral marketing and influencer-driven campaigns.

A Strategic Offensive on Three Fronts

Bazaar’s expansion signals a three-pronged strategy by Amazon:

  1. Market Diversification: Strengthen presence in high-growth regions neglected by competitors like Walmart.
  2. Brand Segmentation: Separate premium services (Prime) from low-cost offerings to avoid cannibalization.
  3. Supply Chain Control: Rely on existing Amazon infrastructure to cut delivery times while preserving margins.

In essence, Amazon is betting that trust and logistics will triumph over gamified discounting — the playbook that made Temu and Shein global sensations.

Challenges Ahead: Competing With “Instant Gratification”

Despite its global reach, Amazon faces serious challenges.
Shein’s social-commerce model — where users earn coupons by sharing and engaging — and Temu’s addictive “spin-to-win” discounts have redefined digital shopping psychology.

Amazon will need to innovate on engagement, not just pricing, to compete in this new attention-driven marketplace.

Analysts also point to data localization laws, tax reforms, and supply chain diversification as potential barriers in regions like Africa and Southeast Asia, where regulatory frameworks differ widely.

The Future of Budget E-Commerce

Bazaar could become Amazon’s most important experiment since Prime — a bridge between its high-trust brand identity and the fast-moving world of low-cost social commerce.

If successful, it will position Amazon not just as a marketplace, but as a global ecosystem capable of competing on every price tier.

But one thing is certain: the e-commerce price war has officially gone global.