Who Should Amazon Worry About Now?

Last week Amazon announced the latest in its ongoing series of innovations, or perhaps experiments: Amazon Haul, an online storefront whose look and feel emulates upstarts Temu and Shein. What’s up?

Todd Bishop of GeekWire asked us about this in his podcast last week. As we chatted about these and other trends in Amazon’s business, we thought about analyzing the underlying CIRP data. That data shows that younger Amazon customers have clearly embraced Temu and especially Shein. 

Earlier this year we took our first look at Temu and Shein and their overlap with Amazon customers. We noted that a material share of Amazon customers also shop at the two competitors. Now we return to and update that analysis, looking at younger customers in the context of the overall retail environment in the US.

Among the recent Amazon customers that we surveyed, 35% have previously shopped at Temu and 22% at Shein. By comparison, 93% have also shopped at Walmart and 75% at Target. Amazon continues to compete hard against the latter two, notably in grocery, as well as the broader range of mass merchant store offerings, including apparel, home, and more.

Among younger customers, we see a more nuanced story. For customers under 35 years old, a significant 41% have also shopped at Temu, and an incredible 53% at Shein (Chart 1). The younger appeal is less significant for Walmart and Target.