Attention Taiwan cross-border sellers! With the impending suspension of the minimum tax exemption on May 2, Temu and Shein are rapidly losing their dominance in the US App Store. Temu plummeted from #3 to #85 in just two weeks, and Shein from #7 to #80 - a clear indication that the revolution in shopping directly from China is is facing its first real market correction.
Demand hasn't disappeared - as evidenced by other Chinese apps surging in the opposite direction. This decline actually represents a strategic ceding of U.S. market share by Temu and Shein, as they are reducing ad spending that would otherwise support rankings and downloads.
This collapse in rankings highlights that Temu and Shein's meteoric rise was largely dependent on aggressive ad spending, a level of spending that has become unsustainable in the new market conditions. And now, Amazon sellers should all be concerned about the opportunities this change presents.
For example, according to Reuters, Temu's average daily U.S. ad spend in early April was down $31% from March, while Shein cut $19%. Of Temu's nearly 30,000 ads in Meta's ad inventory, only a handful remain active in the U.S. today.
You'd be hard pressed to believe that by announcing price increases at almost the same time, starting April 25th, these two companies are effectively admitting that their ultra-low pricing model won't survive the reality of upcoming tariffs. By losing their lowest duty-free advantage, they will face the same tariffs that U.S. retailers have been facing for years.
Shein has reportedly just received approval from the UK's Financial Conduct Authority for an IPO in London, which initially targeted a valuation of $66 billion, but amid increased uncertainty is now reportedly valued at closer to $50 billion.
This is an important market signal for Taiwanese manufacturers and cross-border exporters. The de minimis exemption created an unfair advantage by allowing Chinese platforms to consistently undercut U.S. retailers. Now, for the first time since the Trump administration took office, the impact of bold policy changes is having a material effect on market share.
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# Cross-border E-commerce # Taiwan Sellers # E-commerce Entrepreneurs # Tariff Policies # Market Share # Cross-border Going to Sea # Amazon Global Store # E-commerce Platforms
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