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    Home - E-commerce & Retail - Temu and Shein Cut U.S. Advertising
    E-commerce & Retail

    Temu and Shein Cut U.S. Advertising

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    Temu and Shein Cut U.S. Advertising
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    Temu and Shien have slashed their U.S. advertising spend in response to tariffs and the end of the de minimis tariff exception for orders under $800. The actions could elevate prospects for American shops and brands.

    Google Shopping

    Tinuiti, a marketing agency, shared data with Practical Ecommerce showing that Temu dramatically reduced — and eventually stopped — spending on Google Shopping ads between April 9 and 12, 2025. Shein is following a similar pattern, cutting its Google Shopping ads investment on April 15.

    Moreover, Temu and Shein announced that they will raise prices effective April 25 in response to U.S. tariffs and the May 2 end of the de minimis exception for goods originating from China and Hong Kong.

    Impact and Opportunity

    Temu and Shein have impacted U.S. retailers. For example, in December 2022, Temu had a 17% share of the U.S. discount market, according to Reuters, citing data from Earnest Analytics.

    The marketplaces also created opportunities. Temu had recently launched its U.S. Seller Program, enabling U.S. direct-to-consumer brands and other sellers to list products on the platform.

    Assuming Temu’s and Shein’s advertising and price behavior foretells a lesser U.S. role, a question now is, “Who benefits?”

    Unfortunately, the answer is unclear, although three groups are likely pleased: ad buyers, discount retailers, and ecommerce SMBs.

    Ad buyers

    It might seem like plummeting demand from two large advertisers would lower CPMs or CPCs for other businesses and drive additional shopping traffic.

    Some in the industry believe that Temu’s advertising goal was to buy market share and reduce competition. If true, those competitors could benefit.

    Yet Tinuiti’s Research Director Mark Ballard suggests the impact is not likely widespread. Ballard told Practical Ecommerce that many advertisers continue to bid for Google Shopping impressions, and that any change would be “indistinguishable from noise.”

    Discount retailers

    Discount retail chains might enjoy a competition respite. For example, a February 2025 Eurweb article cited sources estimating upwards of 15,000 U.S. retail locations would close in 2025, partly owing to price competition from Shein and Temu.

    Certainly the chains could benefit from less competition, but a few factors could foil it.

    First, many discount products are made in China. So, while they might face fewer competitors, the chains are not immune to tariffs.

    Moreover, Temu and Shien are not the only threats. Removing China-based marketplaces may change competition, but not eliminate it. Amazon, Walmart, and Target will remain, as will a segment of ecommerce sellers.

    Ecommerce SMBs

    A third group that could benefit from Shein and Temu effectively exiting the U.S. market is small-and-midsized ecommerce sellers competing in the low-cost market or just above it.

    Selling low-cost items could become easier, assuming China is not the source. And goods priced just above the discount range could become a viable alternative.



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