Why Amazon Rallied Today
Shares of Amazon (NASDAQ: AMZN) rallied today, up as much as 3% before retreating to a 2.2% gain as of 2:52 p.m. ET. Still, the e-commerce and cloud giant touched an all-time high on a day in which the Nasdaq Composite was in the red.
That impressive outperformance came on the heels of the company's announcement of a low-priced e-commerce store to combat Chinese rivals Shein and Temu.
Today, Amazon announced Amazon Haul, a storefront specifically focused on low-priced items below $20, with the majority under $10. The new store is a mobile-only feature, which will be installed when you update your Amazon app, and will have items that ship directly from warehouses in China. Even though the company is setting up low-priced items, Amazon will still give its "A-to-z Guarantee" on all items, which protects customers from damaged or defective products, and will retain a 15-day return policy for items that cost over $3 and free shipping for orders over $25. The store is launching in beta, or testing, right now, within the U.S.
Source Fool.com
