(NewsNation) — Some suppliers working with shopping sites Shein and Temu are struggling with thin profit margins and loads of unsold inventory and wondering whether working within the fast-fashion market will work out in the long run, The Wall Street Journal reports.
One manufacturer of children’s clothing in the Chinese city of Shenzhen told the outlet it has been supplying Shein for roughly two years but has experienced issues in recent months. It said if a product does not sell well, Shein will only take a small share and leave factories with the rest.
An electronics vendor also in Shenzhen told The Journal he has seen both success and failure on Temu. He too reported preparing a large number of products, only selling a few and being stuck with them in some instances.
The report comes as Shein and Temu are in a race to win shoppers’ attention for their China-made goods at a low price. But they have been met with criticism as some lawmakers accused the companies of using forced labor and exploiting a tax loophole.
Shein and Temu each ship an estimated one million packages per day on average in the U.S., parcel shipping consultant ShipMatrix said.
