Trump's executive order on February 1, 2024, closes loopholes regarding de minimis shipments from China, poised to impact e-commerce giants Shein and Temu. Both companies have strategically shifted to local fulfillment by establishing US warehouses to mitigate challenges from this regulation change. Analysts note that while the order presents challenges, the overall impact may be less severe than expected. The companies' core success relies on competitive pricing rather than solely on the de minimis exemption, indicating resilience in their market approach as they navigate these changes.
"This will certainly have an impact, but it's much smaller than people think," Alex Yancher, CEO of Passport, shared insights on the de minimis changes affecting Shein and Temu.
"Shein started fulfilling more of them from US warehouses in 2022 and 2023, according to data from ImportGenius that Reuters reported."
"Temu also began allowing US-based vendors to sell on its marketplace in 2024, enabling sellers with warehouses in the US to handle their logistics."
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