While the drop so far is only as big as the traditional post-Christmas falloff in spending on these platforms, it reversed the growth trend seen in late January, and has lasted through Feb 9, the latest date for which data is available.
Online shopping giants Temu and Shein have seen a sustained drop in sales in the week after US President Donald Trump scrapped a duty exemption that their small parcels benefit from, suggesting a chilling effect on American consumers who previously flocked to their ultra-cheap wares.
Shein’s US sales fell 16% to 41% for five days from Feb 5 while PDD Holdings’ Temu notched a fall of as much as 32% during the period, according to Bloomberg Second Measure, which analyses credit and debit card data.
