Chinese E-Commerce App DHgate Tumbles From Top of U.S. Download Ranking - Caixin Global
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The wholesale marketplace app fell to 29th place on Apple’s U.S. App Store after Washington closed a crucial tariff loophole.
The curious rise, and predicted fall, of DHgate in a ranking of most downloaded apps in the U.S. illustrates just how much Chinese cross-border e-commerce platforms had come to depend on a now-closed loophole in American tariff policy.
DHgate, a wholesale marketplace mainly focused on business-to-business sales, dropped to 29th place on Apple Inc.’s U.S. App Store download charts for free shopping apps as of Thursday afternoon, according to data from industry tracker Sensor Tower.
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- DHgate
- DHgate is a Chinese wholesale marketplace, founded in 2004, that connects over 2 million buyers to suppliers, mainly selling electronics, toys, fashion, and more. Recently, it gained sudden popularity in the U.S. due to viral TikTok videos but is seeing a predicted decline after the U.S. ended the “de minimis” duty exemption on small-value imports, making Chinese shipments more expensive. DHgate is now encouraging merchants to focus on other markets.
- Apple Inc.
- According to the article, Apple Inc. operates the U.S. App Store, where DHgate ranked 29th among free shopping apps as of Thursday afternoon, based on industry tracker Sensor Tower’s data. The article uses Apple’s App Store rankings to illustrate DHgate’s popularity and recent decline in downloads following policy changes affecting Chinese e-commerce platforms in the U.S.
- Sensor Tower
- According to the article, Sensor Tower is referred to as an industry tracker that provides data on app rankings. Specifically, Sensor Tower supplied information showing DHgate's position in the U.S. App Store download charts for free shopping apps.
- Temu
- According to the article, Temu is a Chinese e-commerce platform similar to DHgate and Shein, primarily using “small parcel air freight” to ship merchandise to U.S. customers. These shipments previously qualified for the U.S. “de minimis” exemption, which waived duties on packages valued at or under $800, but are now subject to higher tariffs due to recent policy changes.
- Shein
- According to the article, Shein is mentioned as another Chinese e-commerce platform similar to DHgate and Temu. Like these platforms, Shein primarily uses “small parcel air freight” to transport merchandise to U.S. customers, benefiting from the previous “de minimis” exemption that waived duties on packages valued at or under $800, a policy which has now been revoked.
- ByteDance Ltd.
- According to the article, ByteDance Ltd. operates the e-commerce platform TikTok Shop, which is recruiting cross-border merchants for European markets such as Spain, Germany, Italy, and France. The platform also offers support to qualified U.S. sellers operating in these markets, especially following changes in U.S. tariff policy affecting Chinese e-commerce exports.
- Caitong Securities Co. Ltd.
- According to the article, Caitong Securities Co. Ltd. is represented by analyst Yu Jian, who noted that Chinese e-commerce platforms maintain a cost advantage over U.S. brick-and-mortar retailers. Despite new tariffs, Yu pointed out that American consumer demand for inexpensive, high-quality products continues to grow, suggesting e-commerce platforms will remain competitive in the U.S. market.
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