Us-china trade war weighs on e-commerce platform tempera
De Minimis Exemption Helped Temu and Rival Shein Keep Price Low
Temu’s Daily Us Users Fell 58% in May, According to Sensor Tower
By Casey Hall, Arriana mclymore
Shanghai/New York, – Daily Us Users of PDD Holdings’ Global Discount e -Commerce Platform Temu Fell by 58% in May, According to Market Intelligence FIM SENSOR TOWER, One of Maany Headwinds the E-Retaile is Facing AMID a US-China Trade War. Temu Decided to Slash Ad Spending in the US and Shift Its Order Fulfilment Strategy after the White House on May 2 Ended The PRACTICE Known As “De Minimis” Packages to the united states tariff-free.
Temu, Along with Fast-Fashion Giant Shein, Had Uppelised that Provision for Years to Drop-Ship Items Directly from Suppliers in China to Consures in the Us, Keeping Pries Low.
Both Temu and Shein Have Suffered A Sharp Drop In Sense Growth and Customer Growth Rates Since Us President Donald Trump Announced Sweeping Trade Tarifs, According to data collected by Consulted by Consulted by Consulted by Consulted by Consulted by Company, but Temu’s Trends Have Been WorsE Than Its Rival.
Tariffs Forced Bot Platforms to Raise Prisies, but Shein Has Been Able To Increase The Amount of Money Spent Per Customer Compared to a Year ago, The data showed, While Temu Has Struggled.
Temu did not respond to a request for comment on the drop in us daily users or the headwinds it faces in the US market.
Engagement on Temu has dropped significantly following the end of the exemption, Morgan Stanley Equity Analyst Simon Gutman Said in a May Note.
“While the tariff environment is uncertain, if the status quo remain for an extended period, we believe tempu’s competivative threat will continue to weaken,” Gutman said.
Last Week, PDD’s First Quarter Earnings Fell Short of Growth Estimates and Executives Told Analysts on a Post-Earnings Call that Tariffs Had Created Significant Pressure for Its Merchant.
They reiterated Temu’s Earlier PLEDGE to Keep Pries Stable and Work With Merchants Across Regents, Referring to a Shift to a Local Fulfilment Model Announced at the Start of May.
Temu’s Previous Business Model Gave Merchants Responsibility for Ordering and Suppling their products while the China-Based Company Managed Most of the Logisting, Pricing and Marketing. Now, Temu’s Merchants “Can Ship individual orders from China to Temu-Partnered Us Warehouses but they would need to address tariffs and customs chaks and paper work,” According to ACCORDING TO ACORODING TO ANALYSTIS AANALYSTS HSBC. Temu Continues to Handle Fulfilling Orders Close to Shoppers, Setting Pries and Online Operations.
In Last Week’s Note, HSBC said that Temu’s Growth in Non-Ras Markets Has Picked Up, with Non-Hon-Users Rising To 90% of its 405 Million Global Monthly Active users in the second Quore.
“New User UPTick Grew Swifest in Less Affluent Markets,” Analysts Wrote.
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