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.

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 its own discount storefront to compete with the likes of Temu and Shein. “Haul” is currently in beta on mobile and available to some in the US. The marketplace sells discounted items directly from China, just like its competitors.