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Trade truce fuels Temu’s US push

Posted on by SellerBites

Ecommerce hasn’t exactly been a smooth ride—it’s more like a series of sugar highs, hard crashes, and surprise twists. 

Just when you think things are settling down, another curve hits.

HOT TOPIC

Temu just got a holiday gift wrapped in red, white, and blue. 

With tariffs temporarily softened, the bargain app has resumed direct shipping from China, reviving its all-in-one logistics machine and doubling down on ad spend to keep carts overflowing.

đŸȘ Quick bits

  • Tariffs slashed. Duties on China-based imports dropped from 100%+ to 30% for 90 days. Small-package rates slid to 54%.
  • Clock’s ticking. On August 29, all low-value parcels—no matter where they come from—get taxed.
  • Temu’s playbook. Even with tariffs, direct shipping beats U.S. warehousing on cost. Their beefed-up logistics also help dodge delivery lags. đŸ„Š
  • Context. Last year, 1.3B de minimis packages worth $64.6B entered the U.S.—and that flow isn’t slowing anytime soon.

💬 SellerBites’ take

The tariff truce gave you breathing room. But it also gave Temu a bigger oxygen tank. 

Amazon sellers hoping duties would cut Temu down are learning the hard way—price, scale, and speed still win. And Temu’s ready to bleed margin to own those three. ⏳

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BITES OF THE WEEK

AMAZON NEWS

Amazon pulls a US no-show in Google Shopping comeback

Amazon’s ad switchboard is buzzing again. After pulling over 20 domains from Google Shopping ads last month, the retail giant has flipped the switch back on, but only for international markets. 

đŸȘ Quick bits

  • Traffic test. Amazon paused Shopping ads globally last month—likely to measure how much it really needs Google’s pipeline.
  • U.S. blackout. Ads returned for all international domains, but not stateside. This could be Amazon testing what happens when it steps out of the U.S. ad game.
  • Ripple effect. When Amazon left, ROAS across the board dipped. Amazon’s presence actually steadies the ad auction, sometimes helping competitors too.

💬 SellerBites’ take

The fact that competitors lost efficiency when Amazon pulled out is a reminder of how deeply Amazon props up ad ecosystems, even ones it doesn’t own.

If Amazon can tweak ROAS with a single switch, smaller sellers better be watching which way the wind blows. đŸŒŹïž

BIG IDEA

Ecommerce finally catches up to its pandemic peak

Remember the “ecommerce boom” everyone called the future of retail? Turns out it was more like a sugar high. 

U.S. online sales finally hit 16.3% of retail in 2024, the exact same level we spiked to during lockdowns in Q2 2020.

đŸȘ Quick bits

  • The sugar rush. Ecommerce sales shot up 42% in 2020, then crashed back to reality with just 6.5% growth by 2022 as shoppers bolted for malls.
  • The hiring hangover. Shopify doubled headcount, Amazon added 427,000 jobs, both later cut tens of thousands.
  • The CEO confession. Even Shopify’s Tobias LĂŒtke admitted the pandemic bet was a bust. 💾
  • The slow climb. Growth is now a steady +1% retail share per year—this time powered by shopper preference, not lockdowns.
  • The bigger pie. U.S. retail ballooned from $5.25T in 2018 to $7.38T in 2024, meaning ecommerce grows without bulldozing brick-and-mortar.

💬 SellerBites’ take

And here’s the silver lining for smaller sellers: in hype-fueled booms, giants can drown everyone out with cash. In a slow grind, efficiency and loyalty matter more than blank checks.

Call it boring if you want, but this is where real moats are built. By the time the next disruption shows up, the sellers who thrived in the slow lane will be the ones running the race.