Retail & E-Commerce
Who Is the Low-Cost E-Commerce Shopper?
Report summary
Low-cost e-commerce sites sate the desire for more stuff.The rise of China-based e-commerce retailers and marketplaces has sent the industry into a race to the bottom on prices, like when Amazon debuted Haul, an in-app Temu competitor in late 2024. Consumers pressured by accelerated inflation due to pandemic supply chain shocks are flocking to these sites as 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.
Based on a survey of 2,203 consumers and Morning Consult Intelligence’s daily tracking platform, this report provides insight into the low-cost e-commerce consumer mindset.
Key Takeaways
- Low prices drive explosive growth: The meteoric rise of Temu and Shein with U.S. consumers has depended on competitive prices and a wide product assortment.
- Shoppers trade off quality for cost: There’s consistent consensus that while prices are low, product quality is as well, though these sites’ most frequent shoppers have better perceptions of quality.
- Ethical concerns are secondary: Most shoppers have some awareness of the ethical issues surrounding these businesses, but these aren’t as important in their minds.
- Low-cost e-commerce shoppers are trend oriented: The profile of shoppers of these brands reveals a youthful consumer who wants to keep up with trends to achieve social status.
Data Downloads
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Methodology
The research in this report is drawn from multiple sources:
- Low-cost e-commerce site user data featured throughout is from a survey conducted December 21-22, 2024 among 2,203 U.S. adults, with a weighted margin of error of +/-2 percentage points.
- Brand and audience data on pages 4, 11-13 comes from Morning Consult Intelligence. The platform helps you understand your audience, brand, competitors and market in a way traditional helps you understand your brand, competitors and market in a way traditional research companies can’t. Learn more here.
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