eCommerce: Shipping Issues with J&T Express
Shein and Temu in Mexico: Surging Orders Lead to Delivery Chaos
Shein and Temu are seeing a surge in consumer demand in Mexico, but the growth is coming up against an unprepared logistics infrastructure.
Article by Nadine Koutsou-Wehling | September 13, 2024Shein and Temu in Mexico: Key Insights
J&T Express Is Having Trouble Fulfilling Orders: The surge in consumer demand for Shein and Temu in Mexico appears to be overwhelming the local logistics infrastructure. Customers of Shein and Temu in Mexico report delivery delays, missing orders, and theft.
eCommerce Market Conditions in Mexico Facilitate Growth: Shein's and Temu's rapid development in the market is in line with the country's growing online customer base and preference for mobile shopping. But logistics challenges also present opportunities for growth.
Shein and Temu are facing delivery troubles in Mexico, where the two retailers are experiencing explosive growth in consumer demand. Third-party logistics company J&T Express, which handles last-mile deliveries for Shein and Temu in Mexico, has struggled to keep up with the surge in orders. According to Rest of World, customers in Mexico who ordered products from Shein and Temu have experienced order delays, losses, and theft.
Shein and Temu were the most downloaded apps in Mexican eCommerce in 2023, as confirmed by Sensor Tower data. While the low prices and global hype of the two companies speak to consumers in the market, there are not enough structures in place to address formal complaints. Mexican consumers affected by the delivery issues have taken steps to organize themselves online, for example by creating a Facebook group to discuss their problems with J&T Express. The group has some 35,000 members and hundreds of posts detailing their problems with receiving the packages or contacting the carrier.
Mexico’s eCommerce Market Provides Ideal Conditions for Temu’s and Shein’s Growth
Mexico has the ideal conditions for Shein’s and Temu’s continued growth as it is one of the fastest growing eCommerce markets in the world. Mexico is one of the global markets where online access is still expanding. With Mexican consumers preferring to shop online on their smartphones, and social commerce being highly attractive to the majority of them, Shein and Temu fit the mold of reaching consumers where they are with low-cost offers and social referral programs that engage users.
Shein has managed to maintain its pandemic revenue levels, which increased by 178% year-over-year in 2020. While Shein is not yet among the top 5 online stores in Mexico, it is scratching the surface. Rest of the World reports that in the state of Jalisco in western Mexico, logistics orders grew from 2,000 per month to 50,000 per day between late 2021 and mid-2024.
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In the U.S., lawmakers are working to lower the de minimis threshold, which would mean eliminating tax exemptions for orders below a $800 threshold. This could mean that Shein and Temu would ship their orders to Mexico, from where they would forward packages to the U.S. This would mean even higher order volumes for local carriers.
But with challenge comes opportunity. Increasing orders could accelerate the development of eCommerce and create jobs, increase cross-border trade and strengthen infrastructure.
Sources: Mexico Business News – Rest of World – Supply Chain Dive
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