Amazon Haul vs Temu

Hey Superheroes,

Tesla continues to be one of the main recipients of investor interest since Trump’s election victory last week, rising 42% over the past month. 

Meanwhile, U.S. inflation rose by 2.6% in October, following the Federal Reserve’s decision to cut interest rates. 

Let’s dive into this week’s stories.

‘Haul’ Is Here To Take On Shein and Temu

We’ve all seen how Chinese retailers Temu and Shein captured market share across the globe – by offering trendy, popular items at highly competitive prices.  

Their rise has posed a significant challenge to Amazon, where products are often rebranded white-label goods sold at a premium.

In response, Amazon launched “Amazon Haul” this Wednesday – the e-commerce giant’s answer to the demand for affordable options.

So what exactly is it and how does it stack up against Shein and Temu?

😲 Amazon’s New ‘Crazy Low Prices’

Amazon Haul is marketed as Amazon’s new mobile-only shopping experience. Similar to its Chinese counterparts, Amazon Haul features unbranded products all priced under $20. As their slogan puts it, ‘Say hello to crazy low prices’.

Despite the low cost, Amazon has stated that each product is screened to ensure safety and quality, following a model similar to that of Temu and Shein.

And here’s one of Amazon Haul’s biggest selling points: a US$3.99 shipping fee for orders under US$25 and free shipping for those over US$25. In comparison, Shein’s shipping starts at AU$7.95. Temu offers free standard shipping for nearly all orders, however estimates that delivery may take up to 20 days.

Perhaps the only caveat to Amazon’s new business model is delivery time. Items from the Amazon Haul range are expected to take up to two weeks as they ship directly from manufacturers in China. This marks a big shift for Amazon, who has traditionally relied on the express delivery model as a key competitive advantage.

🚨 Potential Risks for Amazon

In September, the Biden administration increased efforts to regulate low-cost goods from China. With Donald Trump now set to be the next U.S. President, his proposal of a 60% tariff on Chinese imports may become a reality. Such policies could significantly raise Amazon’s costs for sourcing products from China.

Meanwhile, Shein and Temu are under growing scrutiny over their sustainability practices and environmental impact, with U.S. regulators raising concerns.

Given Amazon Haul’s similar operational model, these ethical and regulatory issues may become important challenges for the platform to address.

Xero shares hit record high

Xero (ASX:XRO) shares surged 6% on Thursday morning to reach a record high following the company’s strong half-year earnings results.

Here are the highlights:

• Operating Revenue: $996M (↑23% year-on-year)
• Adjusted EBITDA: $312M (↑52%)
• Average revenue per user: $41.34 (↑12%)
• Subscribers: 2.47M (↑9%)

💪 Xero’s Growth Strategy Remains Strong

These results demonstrate the company’s sustainable growth strategy is working, said Xero CEO Sukhinder Singh Cassidy.

Singh Cassidy also noted it is unlikely for Xero’s U.S. market share to be affected by Trump’s return. The company’s focus will be on strengthening customer acquisition and marketing efforts.

🔦  Some other things we’re shining the Spotlight on:

• MAGIC BOOST: Disney stock surged to a six-month high following stronger-than-expected earnings. The company anticipates a US$875M increase in operating profits for the year ending September 2025. Disney credited part of its Q4 performance to films “Deadpool & Wolverine” and “Inside Out 2”.
• SECRET DEAL: Sweden payments company Klarna confidentially submitted U.S. IPO documents this Wednesday. Known for its buy now, pay later business, Klarna’s IPO is expected to be one of the largest among European companies next year.
• CRYPTO’S RISE: Bitcoin soared to an all-time high of US$93,000. This rally is partly driven by rising optimism in the crypto market, likely due to Donald Trump’s “pro-crypto” stance. 

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