After the United States reduced tariffs on imports from China, cross-border e-commerce company Shein lowered its retail prices in the US this week to win back consumers who were scared away by high prices.
According to Bloomberg’s continuous tracking of 98 products on Shein’s official website, the average price of these products on Wednesday was $5.56, down about 13% from the peak of $6.38 on May 7.
Price Commitment to US Consumers
Shein also sent price drop reminders to US consumers on Wednesday, stating that prices for multiple categories of goods have been reduced and promising that shoppers will not be charged any fees or additional costs due to tariffs at checkout. In contrast, another cross-border e-commerce platform, Temu, has imposed import surcharges on goods shipped directly from China since the end of April this year.
Impact of Tariff Reductions
The United States has reduced import tariffs and de minimis tariffs on goods from China. This is a significant benefit for cross-border e-commerce platforms like Shein and Temu, which rely on direct shipments from China to maintain low prices.
Sales Decline After Price Increases
Since Shein began raising prices on April 25, its US sales have been declining. According to the Bloomberg Second Measure, which analyzes credit and debit card transaction data, Shein’s US sales in the seven days ending May 4 fell by 15% compared to the same period last year. Temu’s sales during the same period decreased by about 10% year-on-year. Their transaction volumes in the US market also saw similar declines.
Consumer Traffic Trends
After the price increases last month, consumer traffic on both platforms showed similar downward trends. According to data from Similarweb, in the 15 days following the price increase (ending May 9), their average daily customer visits fell by more than 20% compared to the 15 days before the price increase.
