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It’s day 1 for Amazon Haul — the tech giant’s answer to Temu and Shein

More stuff for less is probably not a hard sell after years of inflation.

As the mass at the center of the e-commerce universe, when Amazon makes a move, the industry usually follows. But, for once, it’s the online giant looking to catch up with its competition, with the company rolling out its new — currently mobile-only — storefront, Amazon Haul, yesterday. It offers an array of products under $20, from fashion to home goods to electronics. Items like $2.99 holiday table runners, $1.79 iPhone cases, and $7.99 quilted totes are available to be shipped directly from warehouses in China to bargain-seeking shoppers in the United States.

From Amazon’s perspective, this feels smart — directly taking on the new kids on the block Temu and Shein, which have burst onto the scene in the last few years, at a time when inflation-weary consumers are more open to finding a bargain than ever before.

Temu & Shein Google Trends
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Despite already holding a ~41% share of the US e-commerce market (compared to Temu and Shein’s 1% each), Amazon is clearly determined to give shoppers as few reasons as possible not to visit amazon.com — even if it means easing up on its signature same- or next-day delivery. In a statement yesterday, Amazon noted shoppers are willing to bear with “one to two weeks” if they can snag “ultralow-priced” items.

According to data from website-intelligence platform Similarweb, Amazon’s main site has had more than 22 billion hits this year — more than 10x what Shein and Temu have racked up combined.

This isn’t Amazon’s first time taking cues from competitors; the company has been accused of borrowing products or business models from online furniture retailer Wayfair, shoe brand Allbirds, and Canadian e-commerce platform Shopify — reportedly even forming task forces to monitor them, according to The Wall Street Journal.

Amazon’s timing might come with challenges: US and European regulators are cracking down on a loophole allowing imports under $800 to dodge tariffs, plus there is Trump’s proposed 60% tariff on Chinese imports.

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Nintendo is reportedly cutting back Switch 2 production by 33% as US sales underperform

Nintendo will produce 4 million units of the Switch 2 this quarter, down one-third from its original 6 million-unit target, according to a report by Bloomberg.

The decision, spurred by weaker-than-expected US holiday sales, is not expected to impact estimates of 20 million Switch 2 unit sales for the fiscal year ending this month.

Nintendo ADRs were down 6% in US premarket trading, and shares closed down nearly 5% in Tokyo. With Tuesday morning’s drop, Nintendo ADRs have entirely shed their gains from the unexpected success of “Pokémon Pokopia.”

Weaker holiday sales weren’t just a Nintendo problem: the season saw the worst November in 30 years for overall American gaming console unit sales, per data from Circana. The Switch 2 rebounded in December, but reports that the company would stop producing its popular (and pricier) “Mario Kart World” bundle dampened investors’ moods again toward the end of the year.

Nintendo ADRs were down 6% in US premarket trading, and shares closed down nearly 5% in Tokyo. With Tuesday morning’s drop, Nintendo ADRs have entirely shed their gains from the unexpected success of “Pokémon Pokopia.”

Weaker holiday sales weren’t just a Nintendo problem: the season saw the worst November in 30 years for overall American gaming console unit sales, per data from Circana. The Switch 2 rebounded in December, but reports that the company would stop producing its popular (and pricier) “Mario Kart World” bundle dampened investors’ moods again toward the end of the year.

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Danone acquires meal replacement shake maker Huel for ~$1.2 billion

Very big things are happening today in the world of nutritionally complete products that taste like chalk, as Danone has agreed to buy the celebrity-backed protein bar, powder, meal, and meal replacement shake maker Huel for €1 billion, or around $1.2 billion.

In a statement announcing the acquisition, Danone — apparently the No. 1 yogurt producer in the US and the nation’s top plant-based food and beverage company as well — said that buying Huel will enhance its “presence in functional nutrition and extend its portfolio into the fast-growing Complete Nutrition space.” Danone, the parent company behind Evian and Actimel, also praised Huel’s “best-in-class digital execution” and fan bases across the UK, Europe, and the US.

Bulking season

Huel, a portmanteau of “human” and “fuel,” was only set up just over a decade ago, but thanks to its marketing efforts, a buzzy product range that marries on-the-go eating with nutrient-dense, plant-based ingredients, and a decent list of (mostly UK-based) celebrity investors, like actor Idris Elba and talk show host Jonathan Ross, sales have soared.

business

China’s EV startup trio have all become profitable

China’s EV startup trio, Nio, Li Auto, and XPeng, are now all profitable, following the latter’s Q4 results released Friday.

XPeng reported a quarterly net profit of about $55 million, compared to rival Nio’s Q4 net profit (also its first) of about $40 million. Li Auto posted Q4 net profit of less than $1 million.

All three companies being profitable offers a stark contrast to the EV market in the US, where Rivian quietly delayed its 2027 profitability target in a filing about its Uber robotaxi partnership yesterday. Lucid is likely further away, and last month cut 12% of its US workforce as part of its “path toward profitability.”

Still, it’s not all rosy for China’s EV startups, either. XPeng ADRs were down more than 6% in Friday morning trading as its Q1 sales forecast came in below estimates. As China rolls back subsidies, auto sales are slumping. Chinese retail EV and hybrid sales fell 32% in February from the same month last year.

9.3%

As the war with Iran produces the biggest spike in US gas prices since Hurricane Katrina, car retailer CarMax is continuing to see heightened interest in EVs, hybrids, and plug-in hybrids.

“From Feb 1st - March 1st (inclusive), compared to March 2nd to March 15th (inclusive), we saw a 9.3% lift in page views for these vehicles,” a spokesperson for the company told Sherwood News.

As industry insiders recently told us, EV interest climbs when gas prices rise. That appears to be holding true even without EV tax credits, which the Trump administration ended under its new budget package.

CarMax also saw EV searches spike in 2022, amid Russia’s invasion of Ukraine and the resulting oil price spike.

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