They may not be toast, but I suspect there are many panicked planning meetings happening now. (Unless they were clever and had a plan ready for a while)
They did have a plan. Temu/Shein used to ship directly from China, handling the shipping themselves for the sellers on their platforms.
Since a year or two ago (or even earlier), they started accepting (and encouraging) sellers to handle the shipping themselves (while still maintaining a fast shipping time) by giving those sellers more traffic.
In order to have fast shipping time, it basically mean the sellers need to have warehouses (or 3rd party warehouses) in the USA. It's easier for the sellers to workaround the tariffs when they are shipping in bulk to the USA.
The prices will be higher for sure, but it will be a lot lower than people are expecting.
Not sure how well the plan will work. Just what I heard from people working in the industry.
43% in 2023 https://ecdb.com/blog/temu-revenue/4995
They may not be toast, but I suspect there are many panicked planning meetings happening now. (Unless they were clever and had a plan ready for a while)
They did have a plan. Temu/Shein used to ship directly from China, handling the shipping themselves for the sellers on their platforms.
Since a year or two ago (or even earlier), they started accepting (and encouraging) sellers to handle the shipping themselves (while still maintaining a fast shipping time) by giving those sellers more traffic.
In order to have fast shipping time, it basically mean the sellers need to have warehouses (or 3rd party warehouses) in the USA. It's easier for the sellers to workaround the tariffs when they are shipping in bulk to the USA.
The prices will be higher for sure, but it will be a lot lower than people are expecting.
Not sure how well the plan will work. Just what I heard from people working in the industry.