It’s been a year of ups and downs for Shein and Temu, from lawsuits to ethical questioning to significant financial milestones.
In 2024, Shein and Temu were spotlighted due to customers’ concerns over product safety. It escalated to the point that the US Consumer Product Safety Commission members are urging a probe.
Where does Amazon fit into all of this?
It’s reported that Amazon plans to launch its bargain section, which could directly compete with the two low-cost Chinese e-commerce shops. If this happens, the items would be shipped directly to overseas consumers from warehouses in China.
Let’s look at what happened to Shein, Temu, and Amazon in the past year and what it could mean for 2025.
Shein’s environmental dirty secret
Earlier this year, Locate2u reported on Shein’s environmental impact in a report about Fast fashion’s dirty secret: How Shein became a climate villain.
The sobering truth about the company’s emission of carbon dioxide was shocking: It was the annual equivalent of four coal power plants—a staggering 16.7 million metric tons.
Cheap fashion streamed into customers’ homes or ended up on landfill sites.
Shein’s head of global strategy and corporate affairs, Peter Pernot-Day, admitted that they use machine learning to “accurately predict demand” in a way that they “think is cutting-edge.”
Research published in the Journal of Retail and Customer Services in November 2024 states that Generation Z remains a significant consumer of Shein fast fashion despite being environmentally conscious.
The research journal has found that increasing awareness of Shein’s practices’ social and environmental impact could influence their sales dominance in 2025.
Temu: The rise to popularity
Despite the legal woes Temu faced this year, it’s also been a financial triumph.
Pinduoduo’s net profit for the first quarter of 2024 more than tripled. The reason? It’s worldwide popularity.
Net profit from January to March 2024 was up 246%, while sales grew by 131% to $11.2 billion.
Just a year after its launch, Temu is already one of the largest retailers in Australia. More than 11 million Australians are already using the website, making it Australia’s fifth-largest online retail brand.
According to an Ipsos Iris study, Temu is slowly catching up and increasing its audience in Australia.
Amazon gearing up for a competition
If Amazon wants to compete with Shein and Temu, it must find ways to lower its prices.
CNBC reports that the American retailer added a new section to the top of its mobile app called Haul just last month. It features ultra-low-priced items primarily shipped directly to China.
Amazon told CNBC that Haul has had millions of unique customer visits since it launched in November.
As 2025 unfolds, the competition between Shein, Temu, and Amazon isn’t just about prices or market share; it reflects shifting consumer priorities. Environmental sustainability, ethical practices, and affordability will all play crucial roles in shaping the market.
About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
