Advertisement
E-commerce
TechTech War

Temu, Shein sales fall in week after Trump scrapped duty exemption, hitting China trade

Shein’s US sales fell 16 per cent to 41 per cent for five days from February 5 while Temu’s fell as much as 32 per cent

Reading Time:2 minutes
Why you can trust SCMP
0
Chinese e-commerce platforms that ship goods from China directly to consumers such as Temu and Shein are expected to be hit hard by the end of the US de minimis exception that allowed packages worth less than US$800 to be delivered without duties. Photo: EPA-EFE
Bloomberg
Online shopping giants Temu and Shein have seen a sustained drop in sales in the week after US President Donald Trump scrapped a duty exemption that their small parcels benefit from, suggesting a chilling effect on American consumers who previously flocked to their ultra-cheap wares.

Shein’s US sales fell 16 per cent to 41 per cent for five days from February 5 while PDD Holdings’ Temu notched a fall of as much as 32 per cent during the period, according to Bloomberg Second Measure, which analyses credit and debit card data.

While the drop so far is only as big as the traditional post-Christmas fall-off in spending on these platforms, it reversed the growth trend seen in late January, and has lasted through February 9, the latest date for which data is available.

The pullback in spending began a day after Trump said that parcels under US$800 from China would no longer be exempt from customs duties, a category that covers the bulk of Shein’s and Temu’s deliveries to US consumers. While the revocation has yet to be implemented, shoppers may be put off by fears that they’ll be on the hook for extra fees.

02:52

China to impose tariffs on some US products as Donald Trump’s 10% levies take effect

China to impose tariffs on some US products as Donald Trump’s 10% levies take effect

Other factors like seasonality, market competition and macroeconomic changes may also be weighing on sales.

Advertisement