Nearly 30% U.S. consumers will reduce or stop shopping on platforms like Temu if prices rise due to new tariffs. This reaction is driven by concerns over higher costs and the potential loss of Temu’s price advantage, which has been a key factor in attracting shoppers. The removal of the “de minimis” exemption for Chinese imports, set to take effect on May 1, 2025, could lead to significant price increases for items from Temu, potentially doubling the final cost for some products. This change, combined with existing issues like long shipping times and inconsistent product quality, may further erode consumer trust in the platform. As a result, Temu faces a challenging landscape, with shrinking margins and a weakened value proposition. Temu’ Reactions to the Price Hike Supply Chain Adjustment Price Changes Marketing and Customer Engagement Diversified Supply Chain Optimization of Logistics and Operations How does Temu’s ‘Half-Custody’ model work? Temu’s “half-custody” model is a strategic shift from its original fully managed supply chain approach. Here’s how it works: Merchant Responsibilities: Temu’s Role: Advantages: Challenges: This model is part of Temu’s broader strategy to adapt to new U.S. tariffs and maintain its competitive edge in the market. How Temu’s “Half-custody” Model […]