Target considering factory-direct shipping to compete with e-commerce giants; seeking to expand low-cost offerings

From Yahoo Finance: 2025-06-24 16:26:00

Target is considering delivering products directly from factories to customers’ homes, following the lead of Chinese e-commerce giants. This move comes amidst tough competition and declining sales in the retail industry. The retailer aims to expand its low-cost offerings with a focus on affordable and new products like apparel and household goods. Competitors like Temu and Shein previously benefited from drop-shipping items directly to customers under the ‘de minimis’ exemption, which waived standard customs procedures and tariffs on imported items worth less than $800. However, the Trump administration ended this exemption for low-value shipments from China and Hong Kong, leading to a decline in daily U.S. users for Temu.



Read more at Yahoo Finance: Target explores factory-direct shipping model, Bloomberg News reports