Amazon Confirms Rumors fromthe United States: Changes to Be Noticed Very Soon

Amazon could soon deliver big news. E-commerce in the United States is about to change. The removal of a tax exemption that benefited companies like Shein and Temu could cause prices to rise and shipments to slow down. Meanwhile, as these platforms face a tough blow, Amazon could benefit.

Donald Trump has closed the legal loophole that allowed thousands of packages to enter the country without paying taxes. This will particularly affect fast fashion giants and low-cost products.

Amazon and the End of an Era

For years, foreign companies took advantage of the de minimis rule, which allowed packages under $800 to enter without tariffs. This facilitated the rise of platforms like Shein and Temu, which could sell cheap products without additional costs.

With the removal of this exemption, prices could increase and delivery times could extend. The measure jeopardizes the business model of these companies, which rely on low prices and fast shipping to attract buyers.

The Reasons Behind This Change

The U.S. Congress analyzed this exemption in 2023 and found that 30% of the packages arriving in the country came from China without paying taxes. Large U.S. retailers had long been asking for its removal, arguing that it gave an unfair advantage to foreign companies.

Additionally, Trump also imposed new tariffs: 10% on China and 25% on Mexico and Canada. These measures aim to strengthen the national industry but also alter the digital commerce landscape.

A Blow for Shein and Temu

Chinese companies dominating online shopping will have to rethink their strategy. Juozas Kaziukenas, CEO of Marketplace Pulse, highlighted that the removed exemption was key to their success. "The removal of this tariff was key for these companies," he stated.

Aaron Rubin, CEO of ShipHero, estimated that Shein and Temu's margins could shrink by 5%. They already operated with low margins of between 10% and 15%, so this cut could force them to raise prices or reduce profits.

Amazon: the Big Beneficiary

Although Amazon also sells cheap products through Amazon Haul, the impact will be smaller. Its structure is more diversified and doesn't rely on tax exemptions to compete in the market.

Gil Luria, an analyst at DA Davidson, believes this change could play in Amazon's favor. "If Shein and Temu lose competitiveness, Amazon could gain customers looking for affordable products with a greater guarantee of delivery," he explained.

This means that many buyers might opt for Amazon instead of waiting for more expensive and delayed shipments from China.

What Can Consumers Do?

In light of these changes, buyers will have to adapt. Some options include:

• Taking advantage of discounts within the affected platforms.

• Buying in larger quantities to reduce shipping costs.

• Looking for alternatives in local stores or other online platforms.

• Online shopping has become an impulsive habit for millions of people. Filling the cart with cheap products was almost a sport. With this new regulation, however, bargains could disappear.

Now the question is: Will Shein and Temu remain profitable for buyers? For now, Amazon seems to be in the best position to take advantage of this change in digital commerce.