Global ecommerce is tightening as major markets close de minimis loopholes and China increases tax scrutiny, putting fresh pressure on platforms like PDD and its international arm Temu. Nearly 1 in 5 US consumers say shifting trade policies may discourage them from buying internationally, adding to the company’s challenges amid uneven spending in China. PDD delivered mixed Q3 results, with earnings beating expectations but revenue slightly missing. The overall picture suggests the company must transition from relying on duty-free advantages to strengthening marketplace fundamentals, even as improving user trends signal early signs of resilience

Chinese sellers are facing intensifying pressure as the EU fast-tracks the closure of its de minimis loophole amid a rapid rise in low-value parcel imports, complicating efforts by platforms like Shein and Temu already contending with poor reception, legal scrutiny, and safety violations in Europe. With Chinese regulators also tightening oversight by demanding detailed sales data, sellers built around rock-bottom pricing are encountering diminishing returns. The environment is pushing brands to pivot toward stronger compliance and higher product quality, a shift that mirrors the success of players like Anker and is becoming increasingly necessary as global rules harden.

Chinese tax authorities are requiring Amazon, Temu, Shein, and other major platforms to submit Q3 sales data from Chinese merchants as regulators intensify efforts to curb tax evasion in cross-border ecommerce. The information is expected to reveal higher actual sales than those reported, potentially leaving sellers liable for up to 13% VAT plus back taxes. The move aligns with Beijing’s broader push to recover tax revenue, and it comes as global markets tighten de minimis rules. These shifts could reshape marketplace dynamics as Chinese sellers reassess pricing, participation, and ad spending amid rising compliance pressures.

Amazon’s quiet expansion of its low-cost apps, Haul and Bazaar, into 25 markets highlights a cautious strategy to counter Shein and Temu without diluting its core brand. Despite marking Haul’s first anniversary with an unannounced two-day sale on November 10–11—aligned with Veterans Day and Singles Day—the company offered little promotion, even as it ramped up marketing for Black Friday and Cyber Monday. The understated rollout suggests Amazon views Haul less as a major growth engine and more as a defensive play to retain budget-conscious shoppers amid cost-cutting and automation efforts.

Amazon has launched its low-cost shopping app, Amazon Bazaar, in 14 international markets including Argentina, Hong Kong, and Nigeria, expanding the reach of its Temu-style platform first introduced as Amazon Haul. Offering mostly sub-$10 items and interactive deals, Bazaar targets price-conscious shoppers across fashion and home goods. The move underscores Amazon’s strategy to capture growth in emerging markets while competing with Shein, Temu, and TikTok Shop. However, as nations tighten import rules and close tax loopholes, the company’s discount-driven model may face mounting logistical and regulatory challenges in sustaining profitability.

Global scrutiny of Chinese-linked ecommerce platforms like Shein and Temu is intensifying as governments tighten oversight. France has threatened to suspend Shein’s marketplace over illegal listings, prompting investigations and a temporary sales halt, while Japan and the EU plan to scrap tax exemptions that have long benefited such importers. Similar moves in Brazil and South Africa highlight a growing global push to level the playing field for local retailers. Though consumers flock to Shein and Temu for low prices, regulators and competitors warn that the platforms’ dominance threatens fair competition and domestic industry resilience.

Online marketplaces are a crucial channel for growth in Europe. But brands need a nuanced strategy to navigate the complex, fragmented landscape.

Retail ecommerce sales in Latin America will sustain double-digit growth this year, but momentum will remain uneven across major markets amid mounting geopolitical tensions.

Temu’s European expansion—and advertising blitz—is delivering substantial growth. Over 25% of the EU’s population—115.7 million people—made at least one purchase on Temu in the first six months of 2025, according to the company’s most recent transparency report. The challenging economic climate is a prime opportunity for Temu to extend its hold on European shoppers—but its ability to do so may soon be hampered by regulatory efforts to change its pricing and advertising tactics.

Shein’s US sales fell 8% YoY in September, marking its second-worst month in three years and underscoring the impact of the Trump administration’s decision to end the de minimis trade loophole for Chinese shipments. The policy shift, which ended tariff-free imports under $800, stripped away a key cost advantage that had powered Shein’s $18 billion in sales last year. In response, the retailer has raised prices, refocused on Europe, and launched its Xcelerator program to attract brands. The company’s future now depends on evolving beyond its low-cost model as trade rules tighten.

This year, retail will underperform overall US ad spending growth for the first time since 2018 as advertisers cut budgets amid tariffs and economic uncertainty. But the outlook for 2026 is more optimistic.

Shein is giving fashion brands access to its apparel manufacturing network—in exchange for setting up shop on its marketplace, Bloomberg reported. Shein’s decision to monetize its manufacturing and fulfillment services is necessary as it looks for more sustainable models of growth. Its insistence on linking Xcelerator to selling on its marketplace could also be beneficial in the long run. More third-party sellers means more inventory as well as the potential for ad revenues, should Shein follow that path.

Marketplaces have been driving US ecommerce growth. But established players face a shake-up from new entrants and advances in AI and agentic commerce.

Amazon used its annual seller conference, Amazon Accelerate, to unveil new tools and fulfillment capabilities that underscore its ambition to serve as the infrastructure of retail. The retailer is weaving together AI-driven tools, externalized logistics, and its vast seller network to extend its influence beyond its own marketplace. As Amazon extends its reach through MCF and Buy with Prime, it increasingly sees merchants and marketplaces not as rivals but as collaborators.

Weak consumer sentiment in Europe is hurting fast fashion sales, with both Primark and Zara owner Inditex reporting slowdowns. The challenging environment in Europe increasingly favors Shein and Temu, whose ability to undercut competitors on price and deliver a steady stream of trendy products positions them to take more fast fashion share. But as in the US, both companies could fall afoul of geopolitical tensions as European governments raise concerns about Chinese overcapacity—and President Trump pushes the EU to implement 100% tariffs on China imports.

Temu’s US business is slowly recovering, despite tariff pressures and the end of de minimis. The ending of de minimis for all sellers—not just those based in China—coupled with higher tariff costs for virtually all retailers has enabled Temu to maintain its value proposition and appeal to bargain-hunting shoppers. That also applies to Shein, which is seeing shopping frequency, app downloads, site visits, and search interest above 2024 levels. The company’s recoveries show how important price is to US consumers—and how receptive they are to the stream of flash sales, discounts, and gamified rewards that Shein and Temu offer.

Tariffs and inflation are reshaping retail, pushing shoppers toward value and convenience. Off-price chains gained ground, while housing-linked retailers sought new growth paths in a slowing market.

Asia-Pacific has the largest retail and ecommerce sales in the world. While China continues to dominate global ecommerce share, India and Southeast Asia are increasingly driving growth. As consumer sentiment improves in China, the retail sales gap with the first-place US will narrow in the coming years.

Generative AI advertising is drawing consumer backlash after brands including J.Crew, Shein, and Skechers released campaigns marred by obvious AI flaws. Internet sleuths and critics pointed to distorted figures, suspicious likenesses, and poorly rendered images, accusing companies of chasing novelty at the expense of quality. The incidents highlight consumer frustration with brands prioritizing speed and cost savings over authenticity—particularly in fashion and retail, where heritage and trust are core to brand equity. Experts argue AI can accelerate creative production, but only when paired with human direction and craftsmanship. Missteps reveal the risks of treating AI as a replacement.

Nike, H&M, and Louis Vuitton will see their share of the global apparel market fall this year, according to a report by GlobalData. Meanwhile, adidas, Shein, Uniqlo, and Skechers will be the biggest winners as shifting trends and tariffs reshape the apparel industry. This year’s apparel winners share two key traits: agility in responding to consumer trends and the ability to offer products that are either affordable or that shoppers deem to be worth the expense. These factors are emerging as critical competitive advantages, especially amid economic and tariff pressures.