Temu’s sales in the United States have taken a sharp downturn, as the online marketplace drastically cuts back on advertising targeting American consumers following the imposition of tariffs by President Donald Trump.
Compared to last year, Temu’s weekly sales dropped by more than 25% during the period from 11 May to 8 June, according to Bloomberg Second Measure, which analyses credit and debit card data. This stands in contrast to other e-commerce platforms such as Shein, Walmart Inc., and Amazon.com Inc., where weekly sales have returned to year-on-year growth since Trump’s trade truce with China in mid-May.
The worsening decline in sales is accompanied by a steep reduction in Temu’s advertising spending — a sharp strategic shift from the heavy ad investment made last year to capture American consumer attention, including high-profile ads during the Super Bowl.
Whereas the platform previously generated thousands to tens of thousands of new adverts daily before 10 April, the number has now dropped to mere dozens — or even single digits — with some days in June seeing no new ads at all, according to analytics firm AppGrowing Global.
“Temu’s sales growth has always been linked to its aggressive advertising,” said Wu Yanwei, content director at YouCloud, the parent company of AppGrowing. “The sharp slowdown in advertising spend will likely halt its growth in the US,” he added, noting that Temu is now redirecting its ad budget to other markets, including Europe.
While Temu declined to comment on specific sales or ad figures, a company spokesperson stated that Temu is working with local merchants in all regions to maintain stable prices for consumers, according to Bloomberg.
Temu and other Chinese e-commerce platforms, such as Shein, had for years relied on a tariff exemption for small parcels to ship cheap clothing and household goods to American consumers duty-free. But after President Donald Trump closed that loophole earlier this year, much of the pricing appeal that once attracted US shoppers has diminished.
Despite the shift, Shein’s sales in the US have performed relatively better in recent months. The company reversed a sales decline and returned to growth as of 1 June, Bloomberg Second Measure data shows. Shein’s single-digit growth since then is comparable to the levels recorded by Walmart’s e-commerce platform.
Shein’s US advertising strategy has also remained more consistent than Temu’s, with the number of new ads per day ranging from dozens to several hundred throughout most of the year, according to AppGrowing Global.
Also read: EU proposes €2 handling fee on parcels from Shein and Temu
Source: newmoney.gr/ Economy Today
