Why Temu and Shein spend so much on Meta

9 digit ads

Temu and Shein are spending so much on advertising that they’re affecting Meta.

While Meta did not actually name the companies, according to estimates by analysts at JMP, Temu invested roughly $600 million, while Shein poured in around $200 million. Social media marketing is one of their strategies to help enter and further dominate the US market.

Temu and Shein’s steamrolling continues

Temu has been on a roll for the past years, growing from 0 to 2 million users in 2 years. Shein, on the other hand, has the largest market in the US, taking 75% of the fast fashion market in 2023.

Even Etsy’s CEO had to comment, saying that the two companies have single handedly impacted the advertising costs of social media marketing.

The companies still take advantage of the trade loophole that lets them ship easily to the US. Under De minimis:

• Packages $800 or less are exempted from tariffs

1 billion packages entered the US in the fiscal year 2023 and 1/3 of these belong to Temu and Shein.

In March, Temu will reportedly opening its marketplace to the US and Europe, but no further updates have been reported.