Amazon Haul, the new discount shopping app from the US retail goliath, launched with little fanfare in November.
The platform stocks “affordable” fashion, home, lifestyle and electronics, but also has already built a robust beauty section with products from L’Oréal Paris, Elemis and e.l.f. Beauty.
This is coupled with comprehensive discovery options to help consumers narrow their search for beauty products — all with a two-week delivery guarantee.
And although Amazon Haul is currently only available to US-based customers, the platform does have ambitions to be something bigger.
“We plan to expand Amazon Haul selection to hundreds of thousands of items across dozens of categories,” Rob Munoz, Global Corporate Communications at Amazon, told Cosmetics Business.
“We will listen to customers as we consider any further expansion.”
The launch of Haul follows an increase in beauty businesses expanding their reach and launching products through the retailer in 2024.
Estée Lauder made its debut on Amazon in October this year, bringing its skin care, make-up and fragrances to US shoppers.
The brand owner joins the likes of Prai, Mugler, Clinique and L’Occitane, which have a dedicated ‘premium’ page showcasing their collections.
Beauty businesses recognise the potential of Amazon, but the retailer’s new discount destination is also competing almost directly with the behemoth that is TikTok Shop.
Does Haul have the potential to usurp TikTok’s grip on the beauty discount market?
Friendly competition
Made by Mitchell, founded by entrepreneur and MUA Mitchell Halliday
Despite Amazon and TikTok being very different entities, the two companies have a unique relationship.
It is a fact that is easy to overlook, and Matt Navarra, Social Media Consultant and Industry Analyst, said the pair have benefited commercially from one another over the years.
Before TikTok Shop launched in 2023 consumers would typically find products on TikTok and then buy on Amazon, Navarra explained.
“I am sure Amazon was very happy with this setup,” he added.
“But with TikTok having this amazing discovery potential, TikTok Shop curtailed this buying process and tried to be the sole platform where consumers do everything.”
This formula has proven to be lucrative for TikTok and the brands operating on the app.
The total Gross Merchandise Value (GMV) of sales on TikTok was reported to be US$1bn in 2024, according to e-commerce experience business Aftership.
Made by Mitchell, founded by entrepreneur and MUA Mitchell Halliday, also became the first UK beauty business to earn US$1m in revenue in a day on TikTok Shop.
The move by Amazon to launch Haul feels like its own new attempt to move away from this relationship and create similar opportunities, said Navarra.
“Amazon does not want to have to rely on the likes of TikTok for its discovery of its products,” he added.
Community versus commodity
TikTok shop was created in 2023
There are, however, some serious hurdles to Amazon Haul taking off in the same way TikTok Shop has since its inception, namely in rivalling its social media community.
TikTok has over 1 billion monthly active users globally, with 150 million in the US alone.
“Amazon doesn't have any of the social features or the same level of community and interaction features, and it will face challenges in replicating TikTok’s addictive algorithms,” said Navarra.
“TikTok Shop has also excelled in commerce because it has been able to leverage influencers and live shopping features in a way that Amazon just can't seem to match.”
Amazon's platform will need to adapt to or adopt “community-driven or content-rich” features to effectively take on TikTok.
Despite TikTok being “cool and trendy”, Amazon's strengths in the e-commerce space undoubtedly come down to its “functionality and price points”.
“It is small things, such as the seamless checkout and returns process, which is something that I think people can be a bit twitchy about on social platforms,” said Navarra.
“It also includes a much wider product selection, with the potential for better quality control, and is supported by Amazon’s recommendation engine.”
Amazon does not want to have to rely on the likes of TikTok for its discovery of its products
Matt Navarra, Social Media Consultant and Industry Analyst
Consumers will also be buying into the “convenience and familiarity” of using Amazon, and Haul will likely have “equally attractive deals and discounts”.
Amazon Haul’s potential success will come down to its ability to adapt, innovate and be more social.
This is especially important when other platforms, namely YouTube and Pinterest, have begun eying the e-commerce space.
“The role of reel videos and social commerce certainly seems to be taking the world by storm at the moment,” said Matt Maxwell, Business Unit Director of Health & Beauty at Kantar.
“It wouldn't surprise me if you see the likes of YouTube transforming from a video-watching platform to a sales platform.
"So you watch a video about someone using a product and talking about styling or whatever, and then actually, within that, they have a link to their bio, which they can then buy through its own ‘YouTube Shop’.”
While there is an appetite for social media shopping, its growth potentially is being stifled by a certain amount of trepidation from consumers.
Navarra concluded: “I think we are still waiting to see how big it will go, and some of the issues and concerns people have around trust with these platforms and quality control is going to continue to hold people back.”
The “trust” that Amazon has built over the past 30 years places the retailer in a strong position, but how it tackles its shortcomings will determine the future of Haul in the beauty industry.