Today in Global Small Business: Global Expansion Simplified for SMEs

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What's affecting me, my clients, my colleagues and other global small business owners:

• Global expansion simplified for SMEs.
• FAQs for tariffs and customs regulations.
• Shein’s and Temu’s prices will get hit even harder by the new de minimis rule.
• Quote of the week:  "Don’t be afraid to give up the good to go for the great." — John D. Rockefeller
• How to sell on eBay in 2025.
• reddit member asks:  Etsy Sellers: How many of you ship worldwide? Is international selling that easy?

Alex Yancher from Passport Shipping on DTC Tariffs

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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.

The De Minimis Rule is a Cornerstone of Small Business Success Globally

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The de minimis rule is a cornerstone of small-business success globally. It allows goods valued under $800 to enter the U.S. with minimal customs paperwork, no need for a broker and streamlined processing.

For small businesses, this simplified process is a lifeline. It makes global trade possible and helps businesses manage their supply chains without excessive regulation and cost. The potential removal de minimis will hurt small businesses and ultimately hurt customers.

The questions also becomes how does the de minimus rule help the SHEIN's and TEMU's of the world?

Read on because there are pros and cons.

Why Did Apple Suspend Temu From Its Digital App Store in 2023?

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A lawsuit filed by State Attorney General Tim Griffin in Cleburne County is targeting the holding company of an online shopping service, Temu, and its business dealings, citing consumer privacy risk as a byproduct of the company making a profit.

"While this is my [says Griffin] first state lawsuit against Temu over its deceptive trade practices, it is not the first time Temu's tactics have been called into question. Apple suspended Temu from its digital app store in 2023, prompting multiple investigations into the company's dealings, including an ongoing investigation being conducted by the U.S. Congress."

Griffin also outlined some of the data he says Temu is obtaining, saying biometric data, which includes fingerprints stored in devices, and location are some examples.

Are Products Sold On Temu Made With Forced Labor?

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Temu, a Chinese-owned e-commerce company, selling everything from clothes to electronics and furniture, first launched in the US in 2022 and later in the UK and the rest of the world.  In case you missed it, they also did six 30-second commercials during this year's Super Bowl that pulled in a record 123 million Americans.  That's the good news.

The bad news:

The shopping giant has been criticized by politicians in the UK and US - a US government investigation finding an "extremely high risk" that products sold on Temu could have been made with forced labor.

Temu says it "strictly prohibits" the use of forced, penal, or child labor by all its merchants.

Read more here how Temu is shaking up the world of online shopping. Check out its history here – from the Cayman Islands to Dublin.

Big Global Ambitions: TikTok, Temu and Shein

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China has been “the world’s factory” for decades, with made-in-China goods reaching global consumers through foreign brands, shops, or sites like Amazon. And the country has had a vibrant domestic e-commerce sector, with companies like Alibaba and JD.com growing into juggernauts.

Now see how Chinese e-commerce platforms like Shein, Temu, and TikTok Shop are causing a stir and going global with big ambitions. 

Do You Temu?

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Did you miss the Super Bowl 2023 commercial – "Shop Like a Billionaire" – by the U.S. shopping app owned by Chinese e-commerce giant PDD Holdings Inc.?

Spending big money like Temu did shows how serious they are about penetrating the U.S. e-commerce market.

The commercial's jingle has a woman saying, “The prices blow my mind. I feel so rich. I feel like a billionaire. I’m shopping like a billionaire.'"

Pricing cheap?  You better believe it.  I did a search on 'purses'.  Here's what popped up.  Pricing averages anywhere from $2.98 – $17.99.  Yes, you can feel like a cheap billionaire or billionaire on the cheap.      

See some ratings on Temu here.  And then look closely at what Wikipedia has to say.  Do you Temu? (Nice tagline, eh?)