US credit and debit card data: Shein's US sales dropped 23% during the week of April 25 to May 1 compared to the prior seven days, while Temu's sales fell 17%
Shein posted a 23% drop in observed US sales during the week of April 25 to May 1, compared to the prior seven days …
Context & Ripple Effects
The decline follows a period in which both platforms had accelerated US sales ahead of tariffs, with strong March and early-April growth reported for Shein and Temu. It also echoes an earlier short-term pullback after China trade measures were targeted, suggesting policy changes were already affecting demand patterns.
This is an early transaction-data signal in a broader disruption to the US cross-border value-commerce model. Later audience data would show the downturn extending beyond a single week, particularly for Temu.
First-order effects
- Shein and Temu face an immediate reversal in observed US sales momentum, reducing the demand cushion they had built ahead of tariff-related changes.
- The sharper weekly decline at Shein puts added pressure on its US growth narrative while it pursues a Hong Kong IPO, while Temu confronts a comparable but smaller near-term sales setback.
Second-order effects
- Both platforms may need to lean harder on pricing, promotions, or assortment changes to preserve US conversion; Shein's subsequent price reductions on tracked US products are consistent with that pressure.
- A sustained pullback creates room for alternative shopping channels: TikTok Shop's January US sales lead shows that social-commerce rivals were already gaining relative traction.
Third-order effects
- If policy-driven cost and fulfillment changes repeatedly interrupt demand, the US advantage of China-to-consumer marketplaces may shift from ultra-low prices toward platforms with more resilient local logistics and merchandising.
- The contrast between Temu's later steeper US daily-user decline and Shein's smaller drop suggests the two companies' US models may diverge in resilience rather than move as a single cross-border-commerce category.
The trend: US trade-policy changes are testing whether cross-border discount marketplaces can retain demand once their low-price and delivery economics are disrupted.