Shein raises US prices up to 377% amid tariff hikes
What's the story
Shein, a major player in the fast-fashion industry, has raised its US prices by a huge margin across product categories, including dresses and kitchenware.
The price hike is viewed as a response to impending tariffs on small parcels.
The average price for the top 100 beauty and health items jumped by 51%, with some products even doubling in price.
Homeware and toy prices rose over 30% on average, driven by a 377% surge in the cost of kitchen towel sets.
Tariff impact
Shein's price surge: A response to US tariffs
The US government's move to terminate the "de minimis" exemption for small packages from mainland China and Hong Kong has led to a 120% tariff on many items sold by e-commerce platforms such as Shein and Temu.
This development implies that goods worth under $800 can no longer enter the US without facing tariffs/customs duties.
From May 2, Washington will also increase the per-postal-item fee on incoming goods to $100, with more hikes scheduled after June 1.
Strategic adjustments
Retailers adapt to tariff changes
In response to Trump's tariff policy, Shein incentivized some Chinese suppliers in February to set up production capacity in Vietnam.
Meanwhile, Temu encouraged Chinese factories to ship their goods directly in bulk to American warehouses using a "half-custody" model.
Both companies saw a surge in sales during March and early April as US shoppers stocked up on various items.
Price increase
Shein's US prices rise by 10% in late April
From April 24 to 26, Shein's prices in the US increased by about 10%, according to a sample shopping cart filled by Bloomberg News with items from different categories.
During this period, seven out of the 50 sampled items were removed from sale in the US.
Compared to these changes, Shein's prices in the UK remained mostly stable, and no items were removed from sale.