This, according to the e-commerce analyst and Marketplace Pulse founder Juozas Kaziukėnas, is among the reasons that ultra-cheap retailers that ship to the U.S. from overseas have found such enthusiastic audiences. “During uncertain economic times,” he told me, “price tends to bubble up to become the most important variable” in how even greater numbers of people make purchase decisions.
Confounding all of this is the reality that price and quality are not as closely tied to each other as they once were. Kaziukėnas challenged a common assumption that the novelty of stores like Temu and Shein will have to wear off eventually: Not everything they sell is as off-putting or low quality in person as you might think. Much of it, according to Kaziukėnas, is identical to what American brands and retailers sell—it is, after all, coming from existing manufacturers—but at a much lower price. Temu and Shein were designed to drive overhead down to a minimum: They’ve bet that lots of people are willing to trade instant shipping and robust customer service for lower prices, and they’ve largely been right. American retailers’ emphasis on speed and variety requires more overhead because they’ve built systems with more steps between manufacturers and buyers. “Amazon and eBay would happily replicate Temu’s ship-from-China model if they hadn’t spent decades optimizing for a different kind of experience,” Kaziukėnas said.
When you look at the data, lots of people who say they hate this phenomenon of cheap, high-volume consumption tend to be enthusiastic participants in it. Kaziukėnas pointed to a recent report published by The New Consumer and the venture-capital firm Coefficient Capital that found that Shein shoppers are considerably more likely to express concern about the environment and sustainability than shoppers overall. “There is a disconnect between what we tell ourselves, what we tell others, and how we behave,” Kaziukėnas said.