Temu and Shein Cut U.S. Advertising

Timo and Shen have reduced their US advertising costs in response to revenue and end De Minemius Tariff exception for less than $ 800 orders. Steps can increase the chances of US shops and brands.

Google Shopping

Tanei, a marketing agency, shared data with practical e -commerce, which suggests that between April 9 and 12, 2025, Google shopping ads decreased dramatically – and eventually stopped.

Further, Timo and Shen announced that they would raise prices in response to US revenue on April 25 and the end of May 2 De Minemius Discount of goods starting from China and Hong Kong.

The impact and opportunity

Timo and Shen have affected US retailers. For example, in December 2022, Temu’s US discount market was 17 % part, According to Reuters, citing elderly analytics data.

The markets also created opportunities. Timo recently launched its US seller program, which directly could give consumer brands and other sellers a list of products on the platform.

Assuming that the US roles are less than Tamo and Shen’s advertising and price behavior, now a question is, “Who benefits?”

Unfortunately, the answer is unclear, though the three groups are possibly happy: advertisement buyers, discount retailers and e -commerce SMB.

Adverter

It seems that the reduction in demand for two major advertisers will reduce the CPM or CPC for other businesses and run additional purchases.

Some people in the industry believe that Timo’s advertising purpose was to buy market share and reduce competition. If true, these rivals can benefit.

Nevertheless, Mark Blard, the research director of Tenyoti, has suggested that it does not have a widespread effect. Blaord told Practical E -commerce that many advertisers keep bidding for Google Shopping’s impressions, and that no change will be “noise”.

Discount retailer

Discount retail chains can enjoy competitive respite. For example, February 2025 EuroB Article Due to the price competition with Shen and Temo, sources that will be estimated above 15,000 US retail locations in 2025 will be estimated.

Certainly that retailer can benefit from less competition, but some factors can thwart it.

First, many discount products are made in China. Therefore, while they may compete with less rivals, retailers are not safe from revenue.

In addition, Timo and Shen are not just a danger. Eliminating Chinese -based markets can change the competition, but it cannot be eliminated. Amazon, Walmart, and the target will remain, as will be a section of e -commerce sellers.

E -commerce SMBS

The class-Tissue group that is likely to take advantage of Shen and Timo’s exit from the US market-the seller of the low-cost e-commerce sellers in a low-cost market or above.

Selling low -cost items can be easy, suppose China is not a source of inventory. And the price of the goods can be a viable alternative to the above price limit.