Alex Yancher from Passport Shipping on DTC Tariffs

©iStock/IvelinRadkov

Ref:  Temu, Shein, and the ‘First Sale Rule’: The Next Big Test for DTC Tariffs

From Alex Yancher, CEO/Co-founder, Passport Shipping: "Did you know that Temu/Shein and other China-based shippers are planning on paying US tariffs on the cost of goods, not the retail value? So for a Temu product that a buyer pays $20 for, Temu will pay tariffs on COGS, something closer to $2 vs. $20 (sales price). Let’s say tariffs are 20%, that’s only $0.40. Temu’s prices will go from $20 to $20.40. *But there’s a catch*."

How does it work?  Read his full LinkedIn post here.

from The Global Small Business Blog https://ift.tt/r4szZGA