When two China-origin platforms — Shein and Temu — exploded onto global e-commerce lists in the late 2010s and early 2020s they did so by mastering three brutal truths of modern retail: ultra-fast product design cycles, razor-thin price points, and an extraction of scale advantages from China’s manufacturing ecosystem. That playbook made both firms dominant traffic magnets and forced incumbents — from mall operators to local online marketplaces — to rethink what low-cost, high-choice commerce looks like. Then, in 2025, geopolitics and customs policy intervened: the U.S. government formally moved to eliminate a long-standing “de minimis” duty exemption that had let many low-value parcels enter the world’s largest consumer market duty-free. For Caribbean shoppers and couriers, that policy shift is not an abstract Washington debate — it is a live disruption that reshuffles costs, timing and competitiveness in global e-commerce.
Below, we explain how Shein and Temu rose, why their model unsettled merchants and designers, and what the de-minimis change means for Jamaican consumers, logistics providers and local retailers — plus what couriers must do now to survive and adapt.
The playbook: speed, low cost, and platform mechanics
Shein and Temu took different routes to roughly the same place: volume-driven, price-led online commerce that offloads risk onto fast suppliers and low margins.
Shein grew by operating an “ultra-fast” fashion model: tiny initial runs, immediate social amplification (micro-influencers and user-generated content), and a supply chain capable of moving designs from screen to dispatch in days. The result was near-instant trend replication and constant newness — a feed of new SKUs that encouraged habitual purchases and low average order values. That model, critics say, also enabled fast copying of independent designers’ work.
Since we founded SHEIN, our focus has been on meeting the needs of customers. We’ve reimagined fashion from a supply-driven model to a demand-driven model to make the beauty of fashion more accessible to all. At the same time, we are focused on continuing to support and empower the designers, creators, suppliers, and partners who are fundamental to our success.” Sky Xu, Co-Founder and CEO of SHEIN
Temu — backed by PDD Holdings (the same parent behind Pinduoduo) — leaned into a marketplace arbitrage model: a platform that aggregates hundreds of thousands of low-cost suppliers, subsidizes consumer acquisition aggressively, and prioritizes scale even at a loss in many territories. Temu’s playbook was essentially to buy market share through deep discounts and heavy promotion, using big customer-acquisition subsidies to build a global user base quickly. Both models depended on inexpensive cross-border parcel movement and the ability to get mass quantities of goods from China to global doorsteps at low cost.
Temu’s strengths : Temu is bringing a sophisticated network of merchandise partners, manufacturers and brands of all sizes to your doorstops because of our:
Ability to offer a wide selection of products, Experience in collaborating with logistical supply chains, Consumer-to-Manufacturer (“C2M”)
Both businesses also faced sharp regulatory and reputational headwinds: designers, regulators and consumer groups have accused Shein of design copying and selling potentially unsafe products; U.S. and state investigators have been probing product safety, labor and data practices at both platforms. Recent investigations and state actions have intensified scrutiny and exposed operational weaknesses in both players.
Why the de-minimis rule mattered — and why its end is seismic
For more than two decades the “de minimis” tariff exemption functioned as a pressure valve: low-value commercial shipments under a certain dollar threshold entered many countries with minimal customs friction or duties. That exemption underpinned the economics of millions of small parcel flows — the very flows Shein and Temu monetized. When Washington announced the suspension of de-minimis treatment for commercial shipments, effective in 2025, it closed a channel that had lowered prices, simplified customs, and gave platforms a global arbitrage advantage. The policy move — presented as both a national-security and worker-protection action by U.S. authorities — forces importers, marketplaces and courier chains to reckon with duties, inspections and slower processing.
In practical terms, the rule change can raise prices for consumers, slow delivery times (because shipments are now subject to more checks), and push marketplaces to re-engineer routing and pricing strategies. For platforms that thrived on sub-$50 orders and cheap cross-border logistics, the economics suddenly looked less certain.
Impact on brick-and-mortar retailers and local e-commerce
Shein and Temu accelerated a long-term trend that many brick-and-mortar retailers already felt: substitution of low-cost online assortment for in-store purchases, especially among value-conscious consumers. Their deep assortments and low prices siphoned discretionary spending away from local shops and pressured domestic online sellers to match price or differentiate on service, brand, or local trust.
But the de-minimis change blunts the pure price advantage. If tariffs and checks add real cost to ultra-low-priced imports, local retailers can regain some price competitiveness — especially where they offer speed, warranty, returns and quality assurance. That said, the platforms’ scale and the continued existence of alternative low-cost channels mean the threat to physical retailers is not gone; it has simply changed form. Retailers that can emphasize local stock, faster returns, product safety and curated assortments will have an advantage.
What Jamaica and Caribbean consumers feel — and will feel
For Jamaican consumers who have grown used to inexpensive imported goods shipped from China, the policy changes are immediate and tangible:
• Higher landed prices. Tariffs and duties add cost to cheap items. For price-sensitive shoppers, marginal orders that once cost US$5–10 may now incur fees that make them economically unviable.
• Slower delivery and more friction. Stricter customs checks lengthen lead times and create uncertainty around delivery windows.
• Shift in purchase calculus. Consumers will weigh purchase frequency, total landed cost (item price + shipping + duties), and the reliability of returns or warranties — all factors that could push some spend back to local sellers or to larger global platforms that can absorb compliance costs.
Local reporting and trade commentary in Jamaica already flagged parcels “in limbo” and platform price adjustments as early signals of this shift. The immediate knock-on effect is a cooling in impulse buys and micro-parcel volumes.
Jamaican couriers: the pressure points
Jamaican couriers and freight forwarders — from national postal services to private last-mile operators — are the invisible hinge of these flows. The de-minimis end creates several operational and commercial effects:
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Customs clearance complexity and cost — More parcels now need duty assessment and customs documentation. Couriers without robust brokerage capabilities face delays and added cost. Many small couriers used to rely on simplified flows; that advantage has eroded.
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Inventory in third-party warehouses — As U.S. rules tightened, warehouses and hubs in transit countries accumulated parcels awaiting customs decisions. Caribbean freight lanes felt knock-on congestion, and Jamaican importers have reported longer clearances. This increases warehousing expense and working-capital needs for forwarders.
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Returns and consumer protection headaches — Low-cost sellers often had shallow return policies. When products arrive damaged or do not meet safety standards, couriers and local marketplaces must handle disputes — an aftercare cost that cuts into thin margins.
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Opportunity for value-added logistics — The flipside is that couriers that can offer bonded warehouses, customs brokerage, duties-paid delivery (DAP/DDP), and fast returns become strategic partners. There is commercial opportunity in packaging compliance and duty-estimation tools.
What Jamaican couriers should do now — a survival and growth playbook
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Build customs and brokerage expertise quickly. Investing in certified customs brokers, training, and software that automates HS-code classification and duty estimation will reduce clearance friction and improve customer predictability. (This is not optional anymore.)
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Offer end-to-end landed pricing. Move customers toward delivered-duty-paid options so total landed cost is transparent at checkout. This reduces “sticker shock” at delivery and improves conversion for merchants.
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Create bonded import pools and consolidation services. Aggregating parcels to optimize duty paid thresholds, or using bonded warehouses to defer duties until parcels are distributed locally, can lower immediate outlays and help price competitiveness. (Note: this requires careful compliance and legal advice.)
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Partner with reputable marketplaces and insurers. Offer merchant protections, inspection services and micro-insurance to reduce dispute costs and increase trust for higher-value transactions.
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Lean into returns handling and QC. Couriers that provide low-cost inspection, repackaging and returns logistics can convert a compliance burden into a revenue stream. Quality control prior to last-mile delivery reduces complaints and improves reputational trust.
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Educate consumers and merchants. Run transparent campaigns explaining new duties, delivery timing changes and how customers can calculate total landed costs. Informed customers are less likely to abandon purchases or be surprised at delivery.
What this means for local e-commerce platforms and retailers
For Jamaican e-commerce players the moment is a double opportunity: higher landed costs for ultra-cheap imports give domestic digital merchants room to emphasize quality, faster returns, and local warranties. Local platforms should:
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Double down on curated assortments and verified suppliers;
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Package warranties and local return windows as selling points;
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Offer “buy local” loyalty programs tied to faster delivery and better support.
These tactics turn regulatory headwinds into competitive differentiation.
The wider geopolitical and regulatory context
The U.S. move to suspend de-minimis treatment was framed in Washington as both an economic and national-security action — arguing that duty-free small parcels can be vectors for unsafe products and unfair competition. That perspective has catalyzed other jurisdictions to rethink their thresholds and enforcement. For Caribbean economies that serve as transit points or whose consumers buy from global platforms, the trade policy shift is both a compliance challenge and an invitation to upgrade trade infrastructure.
At the same time, continuing regulatory scrutiny of Shein and Temu — from product-safety probes to data-privacy lawsuits — may change platform economics further. Fines, forced delistings, or app restrictions will affect consumer options and could restore some demand to vetted local sellers.
Final Businessuite takeaways — what to expect in Jamaica over the next 12–24 months
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Smaller parcel volumes are likely to fall, at least temporarily, as consumers reprice impulse buys and platforms adapt. Expect lower frequency of micro-orders and fewer ultra-cheap purchases.
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Courier margins will compress on legacy models but expand for companies that add customs, brokerage and DDP services. The winners will be those who move up the value chain.
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Local retailers and platforms will have a transient advantage if they can communicate speed, trust and hassle-free returns — but only if they price competitively and invest in digital UX.
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Regulatory and reputational pressure on Shein and Temu adds uncertainty — both platforms may raise prices, narrow SKUs, or reroute strategies to comply with new duties and investigations. That creates both risk and breathing room for local actors.
Businessuite Closing: adapt fast or be left with parcels nobody wants
The Shein/Temu story was a reminder of how quickly global supply chains and digital platforms can unsettle traditional retail — and how government policy can just as quickly re-price the game. For Jamaica, the path forward is tactical and clear: couriers must become customs experts and service integrators; retailers must make local advantages obvious and measurable; consumers must be educated about total landed cost; and policymakers should use this window to accelerate logistics and customs modernization.
The golden rule for anyone in the parcel economy now is simple: the days of “cheap and frictionless” cross-border parcels are ending. The future belongs to operators who convert regulatory friction into predictable, trustworthy services — and who can prove the value of local speed, safety and certainty in a world of increasingly costly cheap goods.
