Sales for online shopping giants Temu and Shein increased in March and April as US shoppers stockpiled products before tariff-led price increases set in.

Shein’s US revenue grew by 29% in March compared to the previous year, according to data from Bloomberg Second Measure. This growth accelerated to 38% in the first 11 days of April.

Temu, owned by PDD Holdings, reported even higher growth rates of 46% in March and 60% during the same period in April.

This sales rebound follows a slowdown in February, marking the slowest growth for both platforms in the past year.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Ultra-fast fashion giants have built growth engines vulnerable to policy changes

Shein and Temu’s dramatic growth has been powered by business models specifically designed to exploit regulatory gaps in international trade.

Shein’s rapid expansion to $16 billion in sales during the first half of 2022 (over 50% year-on-year growth) was enabled by a fragmented supply chain relying on hundreds of Guangzhou suppliers that can rapidly respond to fashion trends 1.

Both platforms have significantly benefited from the “de minimis” exemption that allows packages under $800 to enter the U.S. duty-free, creating a pricing advantage over competitors who import in bulk and pay full duties 2.

The ending of this exemption mentioned in the news article represents the closure of a critical loophole that has been fundamental to their business model, not just a minor operational challenge.

These companies’ extreme growth rates, with Shein’s valuation reaching $66 billion and Temu targeting $60 billion in 2024 sales, were achieved through regulatory arbitrage that is now ending 23.

2️⃣ Consumer stockpiling behavior follows predictable patterns across product categories

The reported surge in Shein and Temu sales mirrors broader consumer stockpiling behavior documented across multiple retail sectors when policy changes threaten price increases.

US retail sales rose by 1.4% overall in March, with particularly strong 5.3% growth in motor vehicles and parts, demonstrating that consumers are accelerating purchases across diverse categories 4.

This pattern of pre-tariff stockpiling stretches beyond e-commerce, with Best Buy recording its best monthly performance since 2021 and increased visits to auto dealerships, showing consumers are making both small and large purchases ahead of expected price increases 4.