Temu and Shein slash ad spend amid rising shipping costs

Chinese e-commerce giants Temu and Shein have sharply reduced digital ad spending as U.S. trade policy shifts threaten their low-cost shipping model. Both companies rely on the Section 321 exemption, which allows duty-free imports under $800, but potential changes could raise costs.

Why it matters

Temu and Shein are among the world’s largest digital ad buyers, driving significant revenue for affiliates and performance marketers. Their aggressive marketing fueled rapid growth, but higher shipping costs could squeeze margins, forcing budget cuts.

Impact on affiliates

Affiliates relying on Temu and Shein campaigns are seeing fewer offers and lower payouts. The pullback creates opportunities for competitors with local fulfillment to gain ad space.

Long-term outlook

While Temu and Shein won’t disappear, their model faces scrutiny. They may adapt with local warehouses or pricing adjustments. For marketers, diversification is key as geopolitics reshapes digital advertising.

The era of unchecked ad spending is over – performance marketers must prepare for a new landscape.