3/16/2024 0 Comments Primerica online taxTemu has found success with its gamified shopping experience, which encourages users to win discounts by sharing the app on social media. “Why hold inventory in the states when you can let your supplier hold that inventory and ship? If American companies don’t get on board with this, they’ll be left behind.”ĭe minimis is far from the only reason why Temu and Shein have thrived in the last couple years. “This is the new model this is the future,” says Steve Story, a business executive who helps companies ship goods under de minimis. Meanwhile, fierce defenders of the provision argue that de minimis is now an inalterable part of how Americans buy things, and that this wave of e-commerce is here to stay, American brick-and-mortar retailers be damned. “It is a huge loophole that particularly enables these two companies to send a gusher of product to the U.S and undercut American businesses that are literally being driven out of business by this competition,” Congressman Earl Blumenauer (D., Ore.) tells TIME.īut lawmakers might not make time for a very wonky issue in this highly contentious congressional session. In response to this worrying trend, several Congresspeople have drafted legislation that aims to reduce one of the main trading advantages Temu and Shein have: a trade rule known as de minimis that allows them to ship packages without paying duty and certain taxes as long as shipments are under the value of $800. American small businesses argue that these e-commerce juggernauts are threatening their livelihoods-and tell TIME that if their rise continues unabated, many shops will close and American warehouses will shutter their doors and move abroad. Temu and Shein ship packages straight from Chinese warehouses on the cheap, allowing American consumers to buy fast fashion, electronics and other products for astonishingly low prices. Temu and Shein are among the fastest growing companies that do business in the U.S.: they now send almost a million packages a day to American consumers, frequently top the App Store, and are racking up billions of dollars of revenue every year. “What we're experiencing now in the domestic textile industry is another level of pain and plant closures compared to anything in our past,” Cook says. This incursion has had an outsized financial impact on the company: last fall, Milliken was forced to close two plants in the Southeast and laid off hundreds of workers, in part due to the newfound competition. For the past couple years, he’s been watching as products similar to Milliken’s apparel lines have popped up on Temu and Shein for shockingly low prices. On Super Bowl Sunday, the e-commerce giant Temu flaunted their alluringly low prices in multiple ad spots during the game, encouraging customers to “shop like a billionaire.” Halsey Cook, the CEO of the South Carolina-based textile manufacturer Milliken & Company, was less than enthused.
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