The news: Low-cost ecommerce exports from China to the rest of the world fell in April for the fifth straight month, according to data from consultancy Trade and Transport Group reported by Reuters.

Exports fell 10.9% YoY in April to $9.81 billion, reflecting the impact of rising oil prices on low-cost ecommerce platforms’ fulfillment models as well as normalized demand for their ultra-cheap goods.

Why it matters: The steep drop in low-cost ecommerce exports comes as Shein, Temu, and other low-cost marketplaces face tougher operating conditions in international markets. The end of the de minimis exemption in the US and other markets has removed an important mechanism to reduce costs. At the same time, rising input and shipping expenses are forcing sellers to increase prices, narrowing the gap between these platforms and rival retailers.

However, the decline in low-cost exports does not necessarily point to falling demand for Shein and Temu. Both companies are directing more inventory to local warehouses to reduce their reliance on air freight and get products to customers faster. And both are still growing at a steady clip, albeit at a much slower rate than in prior years: We expect Temu’s ecommerce sales to rise 12.2% this year, while Shein’s will increase 8.5%.

Implications for retail: While conditions are less favorable for Chinese low-cost ecommerce platforms than a few years ago, they are poised to benefit as cost-of-living pressures grow. US downloads of Temu, Shein, AliExpress, and other value-focused apps soared in the weeks following the start of the war in Iran, according to Apptopia data cited by Barrons, showing consumers are actively seeking out cheaper retailers.