Shein forces Amazon to lower seller fees

Original Article ↗ Hacker News Discussion ↗

Fast-fashion giant Shein’s rapid growth and ultra-cheap, China–to–consumer shipping model is pressuring Amazon to lower seller fees, exposing how U.S. customs rules like the $800 de minimis threshold let foreign platforms undercut domestic retailers. Commenters contrast Shein and Temu’s low prices and TikTok-fueled reach with serious concerns over labor abuses, environmental harm, knockoff products, and tax avoidance. Many also note Amazon’s deteriorating delivery reliability and rising Prime costs, arguing that its marketplace is being hollowed out by low-quality, unbranded goods while regulation and tax policy lag behind these new competitive dynamics.

Shein’s Rise and Fast-Fashion Model

  • Many commenters were unfamiliar with Shein before but are struck by its scale (tens of billions in GMV) and TikTok-driven global reach, even in poorer countries.
  • Shein is compared to an ultra-accelerated, online Forever 21: extremely low prices, trend-chasing, slow-ish shipping vs. Amazon, but compelling discounts.
  • Some see the article as feeling like stealth promotion.

Ethical, Environmental, and Labor Concerns

  • Multiple comments criticize Shein (and by extension fast fashion) as “bad for the planet and humanity.”
  • Allegations include: exploitative labor (even by local legal standards), copied designs, dark patterns, tax avoidance, ultra-low quality garments worn once then trashed.
  • A described “pipeline”: stolen design → micro-order → low-paid overworked factory → air shipping avoiding duties → impulse consumption → quick disposal/landfill.

Customs, Tax Loopholes, and Trade Fairness

  • Shein and Temu are said to exploit U.S. “de minimis” rules (raised to $800) and a simplified customs entry (Type 86).
  • Goods are often air-freighted in bulk, pre-labeled for final carriers, and injected directly into domestic networks, largely avoiding tariffs and inspections.
  • Debate:
    • One side: this unfairly disadvantages local retailers, erodes small businesses, and effectively subsidizes foreign sellers at taxpayers’ expense.
    • Other side: enforcing duties on millions of tiny packages may cost more than it brings in and just raises prices for consumers.
  • Some argue this dynamic mirrors earlier advantages Amazon enjoyed around sales tax and subsidized shipping.

Amazon Shipping, Prime Value, and Marketplace Quality

  • Experiences with Amazon delivery are highly location-dependent: some get reliable same/next-day, others report repeated delays, silent date changes, cancellations, and address glitches.
  • Several users cancelled Prime, feeling shipping speed has degraded while price rose; some see no difference without Prime.
  • Alternatives like Walmart, Chewy, direct brands, Temu, and AliExpress are increasingly used.
  • Growing dissatisfaction with Amazon’s marketplace: flood of low-quality, copy-paste Chinese products, fake reviews, counterfeits, commingled inventory, and poor packaging.
  • Some advise only buying items “sold by Amazon,” or going direct to platforms like AliExpress/Temu where the same goods are cheaper.

Market Structure, Competition, and Regulation

  • Some see Amazon’s fee cuts in response to Shein as evidence it had monopolistic pricing power.
  • Others expect likely regulatory or political response to be targeting/banning heavily Chinese platforms like Shein/Temu rather than restructuring Amazon.
  • Broader concern: a “race to the bottom” where mid-priced, reasonable-quality goods disappear, leaving only ultra-cheap junk and high-end brands.