SHENZHEN, China—E-commerce sellers Shein and Temu are offering a lifeline for small suppliers in China’s manufacturing hubs—but it isn’t always a straightforward win. Others said they were drowning in unsold inventory and were questioning whether dealing with Shein and Temu would be sustainable in the long run. There were other issues: Temu suppliers are responsible for many costs related to returns, and suppliers could also face penalties from Temu if consumers file complaints during returns, Xie said. Shein and Temu, which have been competing for suppliers, also increasingly target the same customers overseas. In the U.S., Shein and Temu each ship an estimated one million packages a day, according to parcel-shipping consultant ShipMatrix.

Source: Wall Street Journal January 03, 2024 19:10 UTC