The Hustle Daily Show Are Shein and Temu screwed?
10 snips
Feb 7, 2025 The podcast dives into the looming challenges for e-commerce giants Shein and Temu as a Trump-era policy shifts tax burdens on Chinese goods. It touches on the nostalgia of beloved brands like Billabong facing bankruptcy and Starbucks' quirky attempt to engage customers with Sharpies. There’s also a discussion about the implications of trade wars on low-cost imports, especially how rising import fees could reshape the landscape for these platforms while focusing on the potential of local warehouses.
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Tax-Free Advantage for Shein and Temu
- Shein and Temu benefited from a tax-free shipping exemption.
- This allowed them to offer very cheap goods, potentially impacting US retailers.
De Minimis Provision Explained
- The "de minimis" provision allowed goods under $800 to be shipped to the US tax-free.
- This provision fueled the growth of Chinese e-commerce companies like Shein and Temu.
Example of Extremely Cheap Goods
- Mark Dent found shower drain covers on Temu for 76 cents.
- This illustrates how inexpensive goods are on these platforms.