China’s E-Commerce Giants Adjust Prices and Rethink Delivery Models as U.S. Tariffs on Low-Value Parcels Bite
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The sweeping U.S. tariff policy targeting low-value parcels from China has upended cross-border e-commerce operations, forcing platforms such as Temu and Shein to pull fully managed listings and scramble to rework their logistics strategies.
PDD Holdings Inc.’s Temu, a pioneer of the full-consignment model — where goods are shipped directly from China to American buyers — now lists only “local warehouse” or semi-managed products on its site and app. Fully managed items are marked “out of stock,” and one Temu seller told Caixin their U.S. storefront was automatically suspended by the platform.
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- New U.S. tariffs on small parcels from China/Hong Kong, including a 120% duty or $100–$200 per package and ending the $800 “de minimis” exemption, have disrupted Temu and Shein’s cross-border operations.
- Temu and Shein raised prices (e.g., health and beauty up 51%, kitchen towels 377%) and shifted to local/semi-managed logistics to adapt, with some sellers facing higher costs and complexity.
- Many merchants resist new models due to increased costs, required overseas warehousing, and lost pricing power.
- PDD Holdings Inc.
- PDD Holdings Inc. is the parent company of Temu, a cross-border e-commerce platform. Temu uses a full-consignment model, shipping goods directly from China to U.S. buyers. Due to new U.S. tariffs and the end of the "de minimis" exemption, Temu has had to suspend fully managed listings and shift to local warehouse or semi-managed logistics, assisting sellers with tools and migration features to adapt to the new tariff policies.
- Temu
- Temu, operated by PDD Holdings, has halted fully managed Chinese shipments to the U.S. due to new tariffs. It now offers only local warehouse or semi-managed products, with fully managed items marked “out of stock.” Temu adjusted prices and introduced logistics features like “one-click migration” and the “Y2” model, which ships goods after orders, to help sellers adapt. However, many vendors are concerned about high costs and reduced competitiveness.
- Shein
- Shein has responded to new U.S. tariffs by updating its checkout page to assure customers that duties are included in prices, with no extra fees at delivery. Shein also offers tools and support to help full-consignment vendors transition to semi-managed logistics and set up local storefronts, but some sellers express concerns about added costs and reduced pricing power.
- Amazon
- According to the article, Amazon briefly considered displaying tariff surcharges on its Amazon Haul discount listings in response to the new U.S. tariffs. However, it quickly reversed this decision after Karoline Leavitt, the White House press secretary, criticized the move as a "hostile political act."
- Bloomberg
- According to the article, Bloomberg data was cited to show that Temu and Shein began adjusting prices on April 25 to absorb the impact of new U.S. tariffs. The data highlights significant overnight price increases on health and beauty items, household goods, and toys, with some categories seeing prices double.
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