The Rise of Low-Cost Retailers Like Temu and Shein
Key Takeaways
Low-cost e-commerce sites like Temu and Shein have seen impressive growth in the U.S. over the last few years. As of January 2025, 44% of U.S. adults have used Temu, and 31% have used Shein.
The main selling point for these retailers is their competitive pricing. Two-thirds (66%) of shoppers say that lower prices are a major reason why they shop from these overseas e-commerce sites, instead of U.S. retailers like Target, Walmart and Amazon.
Shoppers are willing to trade off product quality for lower prices. Two-in-five (42%) of consumers who are aware of these e-commerce options believe that the product quality available is worse than what they would find at a U.S.-based retailer.
Data Downloads
Pro+ subscribers are able to download the datasets that underpin Morning Consult Pro's reports and analysis. Contact us to get access.
Download our new report, Who Is the Low-Cost E-Commerce Shopper?, for a deep dive into industry trends and consumer behavior.
The rise of China-based e-commerce retailers and marketplaces has sent the industry into a race to the bottom on prices. In late 2024 Amazon debuted Haul, an in-app competitor to Temu, DHgate and the like. Consumers pressured by accelerated inflation due to pandemic supply chain shocks are flocking to these sites as a way to keep up with their consumption desires without breaking the bank.
Of course, the pending elimination of the de minimis tariff exemption that has allowed small direct shipments to circumvent U.S. taxes means that all of this stands to change, quickly, assuming the change goes into effect as planned. In preparation Temu immediately began promoting local inventory, showing icons on product listings to indicate inventory that’s already stateside. Shein may have a more difficult time keeping up, as their advantage is in their ability to react to trends quickly.
Temu and Shein see enviable growth with U.S. shoppers
Foreign-owned low-cost e-commerce marketplaces have been rising in popularity with U.S. consumers over the last few years. Shein and Temu in particular have taken the U.S. by storm, capturing the attention and dollars of cost-conscious and trend-seeking shoppers. About two-thirds (65%) of U.S. adults have heard “a lot” or “some” about Temu, and 48% say the same about Shein.
Temu hit critical mass in 2023 after their famous “Shop Like A Billionaire” Super Bowl ad. About one-third (35%) of Temu shoppers started shopping with the brand in 2023, with another 25% following in 2024.
Temu and Shein have seen strong growth in the U.S.
It hasn’t taken long for these relatively new entrants into the U.S. retail space to shift consumer's shopping mindsets. The surge of online shopping during pandemic-era lockdowns, followed by a period of high inflation resulting from supply chain disruptions primed consumers for these offerings. The end of the de minimis tariff exemption stands to reduce these brands’ competitive advantage in the U.S. — good news for legacy retailers. Nearly half (48%) of voters approve of the change, and just 28% don’t.
Low prices and wide assortments drive the appeal for low-cost e-commerce brands
“Shop like a billionaire.” Temu’s memorable Super Bowl ad catapulted the China-based e-commerce brand into Americans’ retail mindshare, and smartphone home screens. Temu was Apple’s app store’s most downloaded app in the U.S. in 2023 and 2024. The brand’s promotion centered on low prices, and the ability to buy just about anything you could need or want for a shockingly low cost. What’s not to love?
Consumers who shop from Temu and similar low-cost e-commerce sites say they do so largely for the low prices, with their wide product assortments as a close secondary asset.
Low prices are the dominant reason shoppers choose sites like Temu and Shein
Those who have heard anything about Temu, Shein, AliExpress or Alibaba were then asked whether they’ve shopped at those respective sites, and among those cohorts, Temu was the most frequently shopped overall, followed by Shein. On a monthly basis, roughly a quarter of respondents said they shop at Temu and at Shein.
Low-cost shoppers trade off product quality for low prices
For those who do shop from any of our tested brands, when asked why they shop at low-cost retailers like Temu and Shein, “the products are better quality” received the lowest share of responses. Accessing low prices requires tradeoffs, and product quality is one of the first to go: Cheap materials, poor construction and durability are frequent customer complaints on social media.
Shoppers’ rate low-cost e-commerce site product quality as equivalent or worse than traditional retailers
Though, those who do shop from low-cost e-commerce sites at least monthly have a better perception of product quality than the survey respondents who are simply aware of these brands. Nearly one-third (31%) of monthly shoppers said they believe they’ll find better quality products on these marketplaces than they’ll get from American retailers like Target, Walmart and Amazon. Another near-third (32%) believe product quality is comparable.
Perceptions of lower prices (as compared to the same U.S.-based retailers) are more consistent across the board. After all, that’s the whole point.
