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Americans flock to Chinese e-commerce apps DHgate, Taobao

April 18, 2025
in Business
Reading Time: 3 mins read
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Americans flock to Chinese e-commerce apps DHgate, Taobao
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President Trump’s tariffs have prompted American online shoppers to ditch fast-fashion upstarts Temu and Shein in favor of two other Chinese e-commerce platforms — DHgate and Taobao — both of which have climbed into the top 5 most downloaded programs on Apple’s App Store.

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Viral videos on TikTok feature Chinese manufacturers urging American consumers to use DHgate and Taobao to purchase knockoffs of high-end luxury brands at a fraction of the cost.

As of Friday, DHgate ranked as the No 2 free iPhone app in the US, with Taobao swiftly entering the Top 5 for the first time.

Taobao is a Chinese e-commerce platform that is among the most downloaded among American users of Apple smartphones and laptops. Timon – stock.adobe.com

The recent surge in downloads of DHgate and Taobao reveals an unexpected shift in American consumer behavior — spurred largely by increased tariffs imposed by Trump on US imports from China.

Temu and Shein, two major Chinese-founded e-commerce platforms that have become increasingly popular among American consumers in recent years, recently announced price increases starting next week.

The move stems from the Trump administration’s decision to eliminate the “de minimis” exemption, which previously allowed imports valued under $800 to enter the country duty-free.

This exemption has been heavily utilized by companies like Shein and Temu to ship low-cost goods directly to American consumers without incurring tariffs.

Effective May 2, these shipments will be subject to tariffs, starting at 120% or a flat fee of $100 per package, increasing to $200 by June 1.

DHgate and Taobao cracked the top 5 of the most popular apps on the Apple App Store.

Those appearing in the viral TikTok videos claim that fashion products such as clothing, shoes, handbags and accessories are initially manufactured in China.

They are subsequently shipped abroad, primarily to Europe, where luxury labels are added and products repackaged before being sold at significantly marked-up prices.

TikTok influencers and creators urged American consumers toward apps like DHgate and Taobao, where items can be purchased directly from Chinese manufacturers.

By bypassing traditional branding channels, shoppers anticipate savings despite ongoing tariff impacts, aiming for substantial discounts compared to luxury retail prices.

Fast-fashion e-retailer Shein and Temu are raising prices in response to President Trump’s tariffs. REUTERS

Growing consumer dissatisfaction with established Chinese shopping apps like Shein and Temu, which have had to increase prices, has further fueled this shift. Consequently, consumers rapidly adopted alternatives such as DHgate and Taobao in search of better deals.

New data from app analytics provider Appfigures illustrates this dramatic surge.

In April, Taobao experienced approximately 185,000 downloads — a staggering 514% rise compared to the 30,000 recorded the previous month.

The most pronounced growth occurred over the past weekend, with Taobao downloads increasing by nearly sixfold between Friday and Saturday alone.

Taobao swiftly climbed the rankings within the iOS App Store.

Initially entering the overall app rankings at No 461 on Saturday, it jumped to No 188 by Sunday, and reached the Top 5 by Thursday.

An employee packages garments for the online Chinese e-commerce company Temu at a clothing factory in the southern Chinese city o Guangzhou on April 16, 2025. AFP via Getty Images

Within the shopping category specifically, Taobao surged dramatically from No 49 on Saturday to No 2 by Thursday — surpassing major retailers such as Walmart, Amazon, Shein and Temu.

Additionally, another Chinese e-commerce platform, Alibaba.com, also saw significant gains, reaching No 6 among shopping apps in the US.

Notably, Appfigures confirmed that this marks Taobao’s debut in the US App Store’s Top Overall charts, based on their records dating back to January 2017.

This underscores the remarkable shift in consumer attitudes and behaviors over a relatively short period.

Despite these apps’ current popularity, experts advise caution to consumers. Shopping on platforms such as DHgate and Taobao entails inherent risks, with product quality often variable.

Users are strongly encouraged to thoroughly read seller reviews and inspect photographs provided by previous buyers prior to completing any transactions.

Credit: Source link

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