Shein has completely stopped its Google Shopping ad spending in the U.S. following a significant price increase on its products due to impending tariffs. Data shows that its share of ad impressions fell from 20% in late March to zero in late April. The halt in advertising coincides with an executive order from President Trump that eliminates duty-free exemptions for packages from China and Hong Kong. These changes necessitate a reevaluation of advertising strategies for Shein and competitors like Temu, which recently also reduced its ad spending.
"We did expect Shein to continue to fade in the auctions, and they did indeed finally shut ads off," Andy Taylor, vp of research at Tinuiti, told Modern Retail.
The numbers suggest a timely change in both Shein's and Temu's U.S. ad strategies. For years, they have benefitted from de minimis, a loophole that allows packages worth under $800 to enter the country duty-free.
On April 25, the day before Shein's U.S. Google Shopping ad impressions dropped to zero, Shein upped prices in the U.S. by as much as 377%.
Going forward, Shein and Temu will need to spend significantly more money to ship packages to the U.S. - and it's likely their advertising tactics have had to change as a result.
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