{"id":8202,"date":"2025-04-30T11:15:44","date_gmt":"2025-04-30T11:15:44","guid":{"rendered":"https:\/\/www.threecolts.com\/blog\/?p=8202"},"modified":"2025-05-06T09:48:00","modified_gmt":"2025-05-06T09:48:00","slug":"shein-and-temu-concede-us","status":"publish","type":"post","link":"https:\/\/www.threecolts.com\/blog\/shein-and-temu-concede-us\/","title":{"rendered":"SHEIN and Temu concede U.S.: What&#8217;s actually happening on the ground"},"content":{"rendered":"\n<p>A recent Marketplace Pulse article declared that &#8220;<a href=\"https:\/\/www.marketplacepulse.com\/articles\/temu-and-shein-conceding-us-market-share\" target=\"_blank\" rel=\"noreferrer noopener\">Temu and SHEIN are conceding US market share<\/a>,&#8221; pointing to declining app downloads and reduced advertising presence. But what&#8217;s really happening with sellers on these platforms?&nbsp;<\/p>\n\n\n\n<p>SHEIN launched their 3rd-party marketplace in May 2023 and Temu launched their marketplace in September 2022. Threecolts services tens of thousands of multichannel sellers, with many choosing to sell on SHEIN and Temu.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Current platform dynamics<\/h2>\n\n\n\n<p>SHEIN&#8217;s 3P model remains stable despite regulatory headwinds. While growth has slowed from its pandemic peak, sellers continue generating consistent revenue on the platform.<\/p>\n\n\n\n<p>Temu sellers show increasing anxiety but aren&#8217;t abandoning ship. Download metrics and app store rankings have declined following <a href=\"https:\/\/www.threecolts.com\/blog\/trump-tariffs-reshaping-ecommerce\/\" target=\"_blank\" rel=\"noreferrer noopener\">recent tariff announcements<\/a>, creating uncertainty among sellers.<\/p>\n\n\n\n<p>Both platforms face similar challenges:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Increased Section 301 tariffs on Chinese imports<\/li>\n\n\n\n<li>Growing regulatory scrutiny over data practices<\/li>\n\n\n\n<li>Rising competition from established retailers entering the ultra-discount space<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What sellers are actually doing<\/h2>\n\n\n\n<p>Rather than platform exodus, sellers are adapting. Our client data reveals three primary response patterns:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Supply chain diversification<\/h3>\n\n\n\n<p>A premium men\u2019s accessories brand (active on both SHEIN and Temu) is rapidly exploring alternative sourcing markets:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Signed a 2-year manufacturing contract with a Noida-based (India) socks producer<\/li>\n\n\n\n<li>Actively establishing partnerships in Vietnam to reduce China dependency<\/li>\n<\/ul>\n\n\n\n<p>They reported 15-20% longer lead times from Chinese suppliers since January, so this diversification was already underway. The diversification accelerated as tariff concerns mounted.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Platform-specific pricing strategies<\/h3>\n\n\n\n<p>A popular denim brand is evolving their pricing approach to SHEIN&#8217;s discount-driven marketplace:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Recently discontinued participation in standard discount promotions<\/li>\n\n\n\n<li>Implemented a 10% base price increase paired with 10% promotional discounts<\/li>\n\n\n\n<li>Maintained promotional visibility while preserving margins against tariff impacts<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">3. Controlled inventory allocation<\/h3>\n\n\n\n<p>A major beauty brand on SHEIN demonstrates the third major adaptation:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Limiting inventory exposure on any single platform<\/li>\n\n\n\n<li>Implementing SKU-level profitability analysis to determine platform-specific assortments<\/li>\n\n\n\n<li>Dynamically adjusting pricing to maintain margins alongside platform requirements<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Platform-specific trends<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">SHEIN<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>3P seller program continues to operate with relative stability<\/li>\n\n\n\n<li>Existing sellers report consistent order volumes<\/li>\n\n\n\n<li>Platform promotions and selling parameters remain largely unchanged<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Temu<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Sellers are panicking, becoming skeptical, and avoiding subscriptions<\/li>\n\n\n\n<li>App store ranking has declined following tariff announcements<\/li>\n\n\n\n<li>Reduced advertising activity visible across digital channels<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What this means for sellers<\/h2>\n\n\n\n<p>If you&#8217;re selling on these platforms or considering expansion, focus on these actionable strategies:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Implement geographic supply chain diversity.<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Target 60-70% maximum sourcing from any single country<\/li>\n\n\n\n<li>Establish relationships with manufacturers in at least two alternative regions<\/li>\n\n\n\n<li>Factor longer lead times into inventory planning<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">2. Develop platform-specific pricing models.<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Create margin buffer zones to accommodate platform requirements<\/li>\n\n\n\n<li>Calculate platform-specific net margins including all fees and tariffs<\/li>\n\n\n\n<li>Remove or reposition SKUs falling below 20% net margin<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">3. Monitor platform health metrics.<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Track app download rankings weekly<\/li>\n\n\n\n<li>Monitor platform-wide promotions and advertising frequency<\/li>\n\n\n\n<li>Evaluate shipping timeframes for potential fulfillment issues<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">4. Adjust inventory allocation accordingly.<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Limit inventory exposure on platforms showing warning signs<\/li>\n\n\n\n<li>Test inventory allocation formulas that incorporate platform risk metrics<\/li>\n\n\n\n<li>Establish inventory redeployment contingency plans<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>Headlines about SHEIN and Temu losing market share tell only part of the story. The reality for sellers is more nuanced\u2014focused on adaptation rather than abandonment.<\/p>\n\n\n\n<p>As we continue working directly with sellers across these marketplaces, we&#8217;ll provide updated guidance on performance metrics and best practices for navigating these evolving platforms.<\/p>\n\n\n\n<p>Looking to sell on SHEIN? <a href=\"https:\/\/cedcommerce.com\/marketplace-integration\/shein-cedcommerce-integration\" target=\"_blank\" rel=\"noopener\">Get started here<\/a>.<br>Looking to sell on Temu? <a href=\"https:\/\/cedcommerce.com\/marketplace-integration\/sell-on-temu\" target=\"_blank\" rel=\"noopener\">Get started here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite tariffs and alarming headlines, many SHEIN and Temu sellers are choosing not to abandon ship. Instead, they&#8217;re adapting.<\/p>\n","protected":false},"author":8,"featured_media":8203,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"coauthors":[],"class_list":["post-8202","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>SHEIN &amp; Temu Concede U.S.: What&#039;s Really Happening to Sellers<\/title>\n<meta name=\"description\" content=\"Despite tariffs and alarming headlines, many SHEIN and Temu sellers are choosing not to abandon ship. 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