How My Foam Rollers'WSJ Debut exposes Temu's Bigger Issues

WSJ A-hed cameo, mini Temu purchases, de minimis value & parcel economics

Dear readers,

This week, I might just have peaked in my PR career — my foam rollers made it in the WSJ's front page A-hed Column.

The media inquiry from WSJ’s Katie Deighton was straightforward:

Why are the likes of Temu, Shein, Amazon etc. selling tiny stuff and badly labeling it as such?

I have several theories, and the growing media interest suggests rising reputational risks for Temu, which could notably impact its international market expansion.

Before going into detail about de minimis value and duty taxes, I want to introduce a new framework to look at cross-border e-commerce platforms in their feverish sprint to capture market share: parcel economics. It is the arbitrage of profit margins, shipping efficiency, and the expansion of the platform growth.

At the heart of the issue is margin.

The race to the bottom on prices is the basis for the relationship between the platform and sellers. Shipping mini versions are a result of the struggle for margin. In this reality of low-priced,…