Amazon takes low-cost e-commerce service global

*

Amazon Bazaar expands to 14 new markets

*

Pushes to compete with Shein, Temu in ultra-cheap goods market internationally

(Adds details on Amazon Bazaar delivery in paragraph 9)

By Arriana McLymore

Nov 7 (Reuters) - Amazon.com (AMZN) on Friday said it expanded its low-cost e-commerce service Amazon Bazaar, known as Haul in the U.S., to 14 additional markets, ramping up competition with Chinese rivals like Shein and PDD Holdings' Temu in the global race to sell ultra-cheap goods like $10 dresses and $5 accessories.

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 standalone Amazon Bazaar app offers similar merchandise to Amazon Haul, the budget-friendly shopping section within the Amazon (AMZN) app, launched last year.

Amazon Bazaar, which launched in Mexico last year, will deliver a majority of products priced under $10 and some as low as $2 to its newest markets, 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. Since launching in Mexico, Bazaar expanded to Saudi Arabia and the United Arab Emirates.

"Amazon Bazaar's expansion is an important step in Amazon's (AMZN) international expansion," said D.A. Davidson & Co analyst Gil Luria. "Amazon (AMZN) 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 (AMZN) 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.

Amazon (AMZN) said products on Amazon Bazaar are shipped directly from the company's global fulfillment centers to destinations and delivered to shoppers via its network of service partners.

Shein and Temu have also ramped up expansion outside the United States. 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 (AMZN) launched Haul in the U.S. in 2024 and has since expanded the in-app service to Britain, 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, Matthew Lewis and Himani Sarkar)