Amazon is making a strategic move into the ultra-low-cost space as holiday spending kicks into high gear. But price isn't the only reason why US shoppers are addicted to Temu.

Amazon has launched a new, mobile-only shopping service called “ Amazon Haul ,” which touts low-cost items of $20 or less. Some consumer experts are seeing it as a new way to counter the two sites – Temu is a Chinese-owned site based in the U.S. while Shein was founded in China but is based in Singapore.

Amazon launched a new discount marketplace Wednesday promoting "crazy low prices" that competes with Temu, Shein and TikTok Shop. Why it matters: Price-sensitive consumers have been "trading down" to cheaper goods to save money while retailers have been promoting store brands.