While TEMU and Shein are in for a world of pain, what does it mean for most online retailers importing into the USA? Let’s dive into these questions. 

Will your factory prices increase?

We had clients ask if the landed cost of their imported goods would increase with these changes. The short answer is no. Most e-commerce sellers are importing large amounts of products that are unaffected by the de minimis threshold, as it primarily impacts smaller, low-value shipments. Or in other words, the regulation impacts small shipments—not bulk imports.

Our pricing prediction

Here’s our factory pricing prediction: Factory prices will come down. Why? Because busy factories can charge more. The surge in volume that drove the shipment of 1 billion small dropshipped packages last year will decline. As a result, factories will face fewer or smaller orders, giving Western e-commerce brands greater bargaining power. 

What are your thoughts on the changes? Do you welcome them? Reuters article on the changes in the comments below.