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SHEIN & Temu Accelerate European Expansion Amid U.S. Tariff Shifts

2025-05-07 574hotness

2025.5.7  GoodsFox Daily E-commerce News: SHEIN & Temu Accelerate European Expansion Amid U.S. Tariff Shifts

  • Hashstash’s Modular Storage Dominates TikTok-Driven Home Organization Trend
  • Temu Halts China-to-U.S. Direct Shipments, Shifts to Local Fulfillment
  • Amazon’s Buy Shipping Program Slashes Logistics Costs
  • Shopee Malaysia Adjusts SPayLater Fees Amid BNPL Competition
  • SHEIN & Temu Accelerate European Expansion Amid U.S. Tariff Shifts

1. Temu Halts China-to-U.S. Direct Shipments, Shifts to Local Fulfillment

U.S. brand Hashstash is capitalizing on TikTok’s #HomeOrganization craze (70B+ views) with its modular magnetic storage systems. Priced at $89–$150, the products offer 35% repeat purchases through accessory bundles and B2B customization (e.g., logo printing). Key tactics include:


  • UGC-Driven Content: Partnering with influencers to showcase "before/after" storage transformations.
  • Local Warehousing: 48-hour delivery via U.S./EU warehouses to reduce shipping times and tariffs.
  • B2B Expansion: Offering tiered discounts for bulk orders (e.g., 10% off for 50+ units).


Opportunity for Sellers: Leverage TikTok’s "shelfie" trend by creating educational content around space optimization, and explore collaborations with interior design influencers.

Source:  GoodsFox


 

2. Temu Halts China-to-U.S. Direct Shipments, Shifts to Local Fulfillment

Temu has ceased direct sales of Chinese-origin goods to U.S. consumers, transitioning to U.S.-based warehouses to avoid the 120% tariff or $100/item fee under the new T86 policy 29. The platform now exclusively lists products from local sellers, with items labeled "Out of Stock" for China-fulfilled orders. While this eliminates import fees for buyers, it forces sellers to adopt semi-fulfillment models, requiring upfront inventory investments and localized logistics 10.

 

3. Amazon’s Buy Shipping Program Slashes Logistics Costs

Amazon has rolled out a cost-saving initiative allowing third-party sellers to apply negotiated discounts from UPS and FedEx to their shipping labels via the Buy Shipping program. This enables savings of 15–25% on standard and economy shipments, while retaining Amazon’s delivery protection 1112. Sellers can access real-time rate comparisons and automated customs documentation, streamlining cross-border operations.

 

4. Shopee Malaysia Adjusts SPayLater Fees Amid BNPL Competition

Effective May 8, Shopee Malaysia will charge sellers 4.5% transaction fees for orders paid via SPayLater (BNPL), up from 1.5% previously . The new rates include 8% Sales & Service Tax (SST) and apply to installment plans of 1–24 months (with 18/24-month terms limited to orders ≥RM100). While SPayLater boosts GMV by 20%, sellers must now factor higher fees into pricing—e.g., a RM1,000 sale would incur RM45 in fees vs. RM15 pre-adjustment.

5. SHEIN & Temu Accelerate European Expansion Amid U.S. Tariff Shifts

Chinese fast-fashion giants SHEIN and Temu are pivoting to Europe, increasing digital ad spending in France and the UK by 35% and 40%/20% respectively in April 1. This strategic shift follows the U.S. elimination of the $800 tariff exemption for small packages, which forced both platforms to cut U.S. ad budgets by 19% (SHEIN) and 31% (Temu) 1. In Europe, their investments are yielding results: SHEIN’s app downloads rose 25% MoM in the UK, while Temu’s surged 100% 1. However, daily active users (DAU) grew only 5% (SHEIN) and 10% (Temu), indicating challenges in converting downloads to loyal customers.

 

For more e-commerce insights and tools, visit GoodsFox.


LinkedIn: https://www.linkedin.com/in/goodsfox-helper-365450282/

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Tag: ad creatives Ad Spy Tools Advertising skills BNPL fees Cross-border tariffs Ecommerce ecommerce news Goodsfox Logistics innovation potential winning product profitable products Retail localization TikTok commerce
Last updated:2025-05-07

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