The cheap-parcel era is over: Temu and Shein pivot to local sellers
After the US scrapped the 'de minimis' exemption, the ship-from-China model got hard. Platforms are moving to local stock and local sellers — opportunity and risk for independents.
After the US removed the 'de minimis' exemption that let low-value parcels clear customs duty-free, the model of air-shipping cheap goods straight from China stopped making economic sense for Temu and Shein. The two platforms were estimated to account for roughly 30% of all de minimis parcels entering the US. In response, both have shifted toward local warehousing and onboarding US-based sellers, pre-positioning inventory inside the country before shipping.
For the independent seller the picture cuts both ways. On one side, as the ultra-cheap cross-border competitor gets more expensive, price pressure eases — the seller who competes on quality gets room to breathe. On the other, as Temu and Shein expand their local-seller networks, a new front of competition opens on those platforms. The winner will be whoever prices in the new duty cost correctly and focuses on 'net-profitable' rather than merely 'cheap' products. The golden age of the small parcel is over; the age of margin discipline is beginning.