© Jannygto
The ecommerce titans are quickly adapting their business models in the face of greater regulatory oversight and heavy competition.
Executive action, announced by the White House last month, to tighten scrutiny of ecommerce and de minimis shipments has triggered changes by Chinese platforms – although implementation of some new rules has been delayed.
Law firm Sandler, Travis & Roseberg last week noted the plan to reject “vague cargo descriptions” in Air Cargo Advance Screening submissions would be postponed until 12 November.
US Customs & Border Protection (CBP) said it would extend the ‘warning period’ – an email is sent pointing out ‘vague’ descriptions such as “gift”, “parts” or “daily necessities”. After 12 November, the warnings stop and shipments described like that will be rejected.
However, Temu is exploring a new business model which could eliminate concerns over de minimis shipments. Earlier this year, it announced it would bring US-based third-party sellers onto its platform.
They must store products in US warehouses and manage their own delivery – essentially targeting Amazon vendors. And they must list it cheaper than on Amazon – the savings for sellers will rely on them avoiding Amazon’s service fees.
Focusing on the domestic US market will allow Temu to circumnavigate…
