436 place 0

561 How U.S. Sellers Are Embracing Trade ‘Loophole’ That Has Boosted Shein and Temu

The Information
Theo Wayt @ The Information · 03/29/2024 09:00 EDT

When Air Up, a maker of scented water bottles backed by PepsiCo and Ashton Kutcher, was looking to cut costs last year, it decided to stop using warehouses located in California and Ohio, and instead ship its Asia- and Europe-made products out of the border city of Reynosa, Mexico.

That change will make it cheaper for Munich-based Air Up to fulfill orders for U.S. customers, largely due to lower labor costs, said William Ashton, the company’s head of U.S. operations. And it comes with another benefit: Air.

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