One risk for Shein and Temu is that consumers may not feel comfortable making purchases from unknown sellers that could potentially be misleading; consumers have more existing trust in Amazon, but the company is working with similar, largely China-based sellers of mass-produced goods. However, Amazon claims that it screens sellers ahead of time, and if customers want to return their purchase, they can do so for free within 15 days as long as the item is over $3.
It’s a dubious time for Amazon to invest in this business model, given that president-elect Donald Trump has proposed leveraging a 60% tax on imported Chinese goods. This tariff plan isn’t set in stone, though — it’s common for politicians to shift their campaign platforms after they’ve secured a win.