Temu and Shein are in a street fight for US ecommerce marketshare.
Temu is suing Shein for using “mafia-style intimidation” of its suppliers to limit its growth. Suppliers are being summoned, detained for hours, having their phones confiscated, and threatened with penalties if they do business with Temu.
Shein has hit back, claiming Temu has subsidized its low prices by encouraging sellers to offer counterfeited goods, stolen designs and sub-par products.
Meanwhile, Congress is making strides toward closing the ‘de minimis’ loophole that Temu and Shein have been exploiting to avoid import taxes on shipments into the U.S. Additionally, UPS—and soon FedEx—are implementing a ‘surge fee’ on packages from China for similar reasons.
Sources:
https://apnews.com/article/temu-shein-lawsuit-suppliers-copyright-426a85d855209b63eea72bbc7a03ade8