蘑菇AV

This is the Q2 2025 installment of our "Retail and Ecommerce Sales Benchmarks鈥� series, which helps retailers and brands gauge their sales mix against the market.

This is the Q2 2025 installment of our "Retail and Ecommerce Sales Benchmarks鈥� series, which helps retailers and brands calibrate their sales mix against the market.

Turbulence in trade relations is changing how China鈥檚 ecommerce platforms do business in the US, with spillover effects on US retail and advertising.

The news: Temu鈥檚 foothold in the US is shrinking as the company pulls back sharply on advertising. Weekly sales slumped more than 25% YoY between May 11 and June 8, according to Bloomberg Second Measure. Our take: Given the importance of the US market to Temu and its merchants, it鈥檚 possible that its current pause on US ad spending and shift to Europe is a temporary effort to regroup as it searches for a business model more resistant to tariffs and the end of de minimis. At the same time, the longer the pause goes on, the more ground it will cede to Shein and other competitors鈥攁nd the harder it will be to regain market share.

The US-China trade war drives Shein to diversify its sourcing: Shein and Reliance Retail plan to start international sales of India-made Shein-branded clothes within six to 12 months.

So far, tariffs haven鈥檛 meaningfully affected prices on Amazon鈥攂ut that could change quickly should the US-China trade war reescalate, and if the Trump administration decides to re-enforce its reciprocal tariff plan.

The insight: Amazon is trying to make a bigger name for itself in the luxury sphere鈥攁 strategy that could help soften the blow from tariffs. Our take: That designer brands and retailers are eager to partner with Amazon despite its mixed track record in luxury shows the state of the industry, which is under serious pressure as economic uncertainty saps even affluent consumers鈥� desire to shop. Amazon鈥檚 extensive reach鈥攖hree-quarters of US households are Prime users, per our forecast鈥攁nd ability to drive spending even in times of volatility are making it an increasingly valuable partner for any brand looking to drive sales in an unsettled environment.

The news: PayPal is launching storefront-style ads that allow users to buy products directly within display ads on publisher sites, using PayPal or Venmo without leaving the page. Debuting in the US with partners like Business Insider and Vox Media, the units will later expand to include carousels and listings. This move strengthens PayPal鈥檚 financial media network footprint after its 2023 Ads launch. Our take: As FMN spend is set to reach $1.78B by 2027, PayPal is embedding commerce where consumers already are. These shoppable ads address friction, drive impulse purchases, and position PayPal as a safeguard against rising AI-driven agentic commerce.

Go further: Check out our tariff coverage, including our reports on the Impact of Tariffs on US Businesses.

Canada鈥檚 trade war with its largest trading partner is underway. While uncertainty remains around the scope and depth of US tariffs, Canadian brands and retailers need to rebalance a heavy reliance on US-based customers and suppliers.

While that rate was later eased to a still-sizable 54% earlier this month, it triggered price hikes from Shein and Temu in the US that then resulted in sales falling at both platforms. With demand cooling stateside, both ecommerce giants ramped up digital ad spend in Europe as they sought to drive growth.

Though beauty has remained a relatively resilient category amid rising prices, tariffs could put a damper on that as they take hold. 29% of US adults say they鈥檒l likely cut back on beauty/personal care spending if tariffs raise prices, according to February 2025 data from CivicScience. That鈥檚 why retailers like Walmart, Amazon, and Target are boosting their beauty offerings to drive sales and increase customer loyalty. Here鈥檚 how.

US-UK trade deal eases barriers across key sectors: Our FAQ explains how the pact may benefit exporters and affect economic growth.

US President Donald Trump鈥檚 shifting trade policies will have ramifications for US brands that do business with Latin America. This FAQ addresses the most pressing questions for companies as they navigate new tariffs, supply chain disruptions, and the potential rise of new competitors.

In our exclusive survey with ESW, data from shoppers in 18 countries reveals new twists in the path to purchase, the rising momentum of marketplaces, and the resilience of age-old fundamentals.

Go further: Check out our FAQ: How the US-China Trade War Is Affecting TikTok Shop, Temu, and Shein and Impact of Tariffs on US Businesses.