By Arriana McLymore

(Reuters) -Amazon.com on Friday expanded the reach of its low-cost e-commerce service to 14 additional markets and said it will call it Amazon Bazaar.​ The new app is part of a push to compete with Chinese rivals including Shein ‌and PDD Holdings' Temu to sell $10 dresses and $5 accessories in international markets.

Sweeping import tariffs imposed by U.S. President ‌Donald Trump have dented consumer sentiment, especially for lower-income groups, who often seek out cheaper deals.

The new app is similar to Amazon Haul, the budget-friendly shopping section within the Amazon app, launched last year. Amazon Bazaar will deliver a majority of products priced under $10 and some as low as $2, ranging from ⁠home goods to fashion, according to ‌the e-commerce giant. Some of the newer markets for the low-cost e-commerce service include Hong Kong, the Philippines, Nigeria and Taiwan, it said.

"‍Amazon Bazaar's expansion is an important step in Amazon's international expansion," said D.A. Davidson & Co analyst Gil Luria. "Amazon has only entered a market when it believed it can scale up to ​a level where it delights consumers and builds a profitable business."

Luria said Amazon often takes years to ‌achieve profitability when it enters new countries and markets. The company reported third-quarter international revenue of $40.9 billion, up 10% from the year-ago period, excluding the impact of foreign exchange.

"If it can build a business selling a small selection of very low-cost items at an attractive service level, it could expand beyond the core 23 markets to nearly every other country in the world," Luria said.⁠

Shein and Temu have also ramped up expansion outside the U.​S. Shein now operates in more than 160 countries including ​the U.S., Brazil, Ireland, and Southern China, according to its website. Temu ships to at least 70 countries.

The U.S. operations of both ‍companies were dealt a blow ⁠when the Trump administration banned the use of de minimis, a trade exemption that allowed packages valued at less than $800 to enter the country duty-free.

Amazon launched Haul in the U.S.⁠ in 2024 and has since expanded the in-app service to the UK, Germany, France, Italy, Spain, ‌Japan and Australia.

(Reporting by Arriana McClymore in New York and Anuja Bharat Mistry in ‌Bengaluru; Editing by Anil D'Silva and Matthew Lewis)