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Shein’s US ambitions hindered by FTC investigation, tariffs
['Dani James']
Retail Dive - Latest News
Please let us know if you have feedbackShein’s U.S. business operations are under investigation by the Federal Trade Commission.
Shein did not outline specifics about the investigation and the FTC declined to comment on the matter.
However, Shein disclosed that while a settlement with the FTC is possible, the company cannot predict the outcome of the investigation and warned of the potential for significant monetary payments.
Meanwhile, its net revenues in the U.S. dropped year over year during the same timeframe, whereas net revenues grew across its other geographic regions.
This also increased its fulfillment expenses as a percentage of net revenues, though the company has since observed signs of normalizing consumer purchase behavior in the country.