The Great Haul Collapse: How Temu and Shein's 2025 Downfall Is Exposing the Dark Truth Behind Your Favorite Shopping Videos

Introduction

If you grew up on TikTok unboxings, YouTube hauls, and those frantic "did I just spend $100 on clothes?" confessions, you know what a haul video felt like: cheap thrills, instant dopamine, and a closet full of trend pieces that cost less than a concert ticket. For years Temu and Shein were the secret engines powering that whole vibe. They made it possible to buy a dozen outfits for pocket change and turned impulse shopping into an entertainment genre. But in 2025 something snapped. What looked like an unstoppable retail revolution — haul culture — hit a wall: app rankings nosedived, user numbers evaporated, ad budgets shrank, and a historic policy change removed the financial trick that made those prices possible.

This exposé unpacks how that fast-fashion fantasy was less about innovation and more about regulatory arbitrage, heavy ad spending, and a fragile business model built on loopholes. We’ll walk through the timelines and numbers (yes, the ugly drops: Temu from #3 to #85 in app rankings in April, Shein from #7 to #80), the policy shifts that flipped the script (the de minimis exemption and its effective end), and what this means for Gen Z trends, influencer culture, and the future of shopping videos. If you’ve ever clicked on a “Temu haul” or a “Shein haul” and wondered how the math worked, this is the story behind the curtain — and the one about how billions of cheap packages changed U.S. trade, social feeds, and consumer habits.

I’m writing this for a Gen Z audience that made haul culture what it was: skeptical, trend-savvy, and tuned into both aesthetics and ethics. Expect data, dates, and real impacts — and, more importantly, actionable takeaways so you know how to shop and create with your eyes open after the Great Haul Collapse.

Understanding the Great Haul Collapse

The collapse in 2025 wasn’t a slow fade; it was a corrective wipeout that revealed structural weaknesses. Here are the key facts that set the scene.

- App-store shock: In April 2025 Temu’s app ranking plummeted from #3 to #85 in just two weeks; Shein slipped from #7 to #80 in the same period. That’s not natural churn — that’s a platform suddenly losing the traction that propelled it into mainstream culture. - Ad spend retraction: Temu’s daily U.S. ad spend dropped about 31% in early April compared to March; Shein cut back roughly 19%. Those ad dollars were the oxygen for haul videos, paid promotion, and algorithmic visibility. - User metrics crater: Between March and June 2025 Temu lost roughly 51% of its monthly active users, dropping to about 40.2 million. Shein’s users dropped too — about 12% down to roughly 41.4 million by the end of June. Earlier in May Temu had averaged 41 million monthly users after being at 58 million in March — a dramatic decline in a short time. - Web traffic collapse: U.S. website traffic for Temu plunged by roughly 51% from May 1–16 (year-over-year), and Shein’s traffic fell nearly 44% for the same window. Meanwhile, legacy retailers like Walmart.com saw a 15% spike in traffic and Target.com saw a 10% increase — consumers shifted. - The de minimis engine: The de minimis exemption is the arcane rule that let small-value imports enter the U.S. duty-free. After the exemption was expanded in 2016 (to $800), de minimis imports exploded — from $9.2 billion in 2016 to $54.5 billion in 2023. Chinese sellers accounted for nearly 60% of those shipments. That change is the single most important structural reason ultra-cheap international fast fashion could scale and fund haul culture. - Policy tipping point: In spring 2025 a suspension related to de minimis was approaching (May 2nd flagged in early reporting), but the decisive moment came June 30, 2025, when an executive order effectively closed the loophole and imposed higher tariffs on certain Chinese imports. Forecasts predicted major price hikes by late August 2025, and commentators like the Cato Institute warned about the immediate economic impacts on low-income shoppers. - Geographic pivot: The decline in U.S. traction coincided with a pivot to Europe. Temu reported year-over-year sales growth of more than 60% in the EU in early May, with France nearly doubling. That suggests the companies were not incompetent — they were responding strategically to shifting policy environments.

Put together, these numbers show that haul culture’s economics were fragile. The cheapness that made haul videos addictive relied on a specific global trade rule and massive customer acquisition spending. Remove either and the whole thing unravels.

Key Components and Analysis

Let’s break down the mechanisms that created haul culture — and how each one failed or was exposed.

1) The De Minimis Arbitrage - Why it mattered: De minimis meant many low-value packages could bypass duties and import taxes, making it economically viable to ship $2 accessories and $5 dresses directly from overseas manufacturers. The math allowed platforms to undercut domestic prices and still make a profit through scale and volume. - The result: A surge in cheap merchandise, low prices for consumers, and an explosion of content to showcase it. De minimis imports jumped from $9.2B in 2016 to $54.5B in 2023; Chinese sellers were behind roughly 60% of that movement. - Why it failed: When policy makers moved to close the loophole and increase tariffs, the fundamental price advantage evaporated. Suddenly those viral $10 hauls looked more like $20–$30 projects — far less impulse-friendly.

2) Advertising-fueled virality - How it worked: Temu and Shein heavily subsidized visibility through paid ads, influencer partnerships, and sponsored content. Temu alone ran nearly 30,000 ads at one point in Meta’s ad library. That paid lift trained social platforms to reward haul-style content with reach. - The weakness: As ad spend dropped (Temu down ~31% in early April; Shein down ~19%), organic discovery suffered. Algorithms that had been primed by ad spend deprioritized the content, reducing creators’ reach and the platforms’ new-customer funnel. - The fallout: Content creators who relied on predictable, cheap-price hooks saw views dip, engagement change, and sponsorship dynamics shift. The “free money” model for creators was undercut.

3) Price elasticity and consumer psychology - Gen Z’s shopping model: Immediate gratification + content entertainment = repeat impulse purchases. The low price points made experimentation harmless, and haul videos encouraged continuous micro-consumption. - What changed: With looming tariffs and price increases, the hobby of collecting impulse buys became costlier. Weekly and monthly shoppers — already sliding — were sensitive to price increases. Shein’s weekly shopper rate had already fallen 8% from April 2024 to Feb 2025 and monthly shoppers were down 11% in that period, signaling churn before the biggest policy hit.

4) Platform dependence and single-market risk - Temu and Shein built massive U.S.-centric strategies, leveraging app stores, workflows, and influencer culture. But when the U.S. policy landscape changed, both platforms experienced outsized hits in the market where haul culture had the most momentum. - Strategic pivot: Instead of folding entirely, the companies redirected focus to Europe where trade rules and market conditions were still favorable. Temu’s EU surge (60%+ growth and nearly 100% in France) indicates a tactical retreat rather than an overall business fail.

5) Secondary effects on traditional retail - Short-term: As traffic fell for ultra-cheap platforms, traditional retailers saw gains — Walmart.com +15%, Target.com +10%, and more traffic to department stores and value brands. Consumers shifted to stable domestic options that promised better shipping reliability and clearer pricing. - Market correction: The cheap-fast model’s collapse gave breathing room to domestic competitors and more sustainable brands that had struggled to compete against artificially depressed prices.

Taken together, this analysis shows haul culture wasn’t purely an organic lifestyle shift: it was the result of a trifecta of special regulatory treatment, massive paid promotion, and a consumer psychology primed for low-stakes experimentation. Remove any of those pillars and the edifice loses integrity.

Practical Applications

What does all this mean for creators, shoppers, and trend-watchers? Here are practical ways to adapt.

For creators (influencers, video makers) - Diversify income and brand focus: Don’t rely on single-category sponsorships or on the cheapest fast-fashion brands. Explore partnerships with thrift platforms, local designers, rental services, or sustainable labels. These categories are gaining traction as haul culture loses its price-based appeal. - Pivot content themes: Move from “$50 Temu haul” to formats like “thrift flip,” “investment pieces under $100,” “one-year wear test,” or “how to style ethical pieces.” These formats are more future-proof and resonate with a Gen Z audience that increasingly values authenticity. - Transparency wins: Be clear about affiliate links and ad relationships. As the halo of free or subsidized items fades, audiences will care more about honesty — and creators who’ve been transparent gain trust during market shifts.

For shoppers - Reassess impulse habits: If you bought multiple cheap items because they cost almost nothing, expect pricing changes. Start asking: Will this garment last one month? Six months? Can I resell or repair it? - Explore alternatives: Thrifting, clothing swaps, rental platforms, and sustainable brands often provide better long-term value and resale potential. If price sensitivity is critical, consider outlet shopping from reliable domestic brands that offer returns and quality assurances. - Follow policy and price signals: Be aware that geopolitical shifts can change what’s cheap. The de minimis change and tariffs are a reminder that consumer prices can flip due to policy — not just trends.

For brands and retailers - Emphasize supply-chain transparency: Brands that can demonstrate ethical sourcing, reliable shipping, and clear pricing will capture customers moving away from opaque ultra-cheap platforms. - Invest in experiences: In a world where price parity narrows, experiences — personalization, community, long-form content — become competitive differentiators. - Use data to pivot quickly: Consumer traffic shifted to Walmart and Target quickly when Temu/Shein stumbled. Retailers that can scale inventory and marketing fast will capitalize on such market corrections.

For platform/platform-watchers - Build sustainable acquisition strategies: Relying on massive paid-ad funnels is fragile. Organic retention, loyalty programs, and regional diversification create greater resilience. - Plan for regulatory risk: Any business model that benefits from regulatory arbitrage needs scenario plans for rapid policy changes.

Challenges and Solutions

The Great Haul Collapse reveals both immediate challenges and pathways to solutions. Below are major problems and realistic responses.

Challenge: Lost access to ultra-cheap inventory - The problem: Tariffs and de minimis changes mean the ultra-low price points that fueled haul culture might no longer exist for many imported items. - Solution: Shift to higher-quality fast-fashion alternatives that emphasize durability and versatility. Brands can focus on “less but better” messaging. Creators should adapt by showcasing fewer items with higher value — and provide honest assessments on longevity.

Challenge: Creators losing reach and revenue - The problem: Paid promotion declines hurt creators who depended on algorithmic amplification tied to ad budgets. - Solution: Diversify revenue streams: memberships, Patreon-style support, original merch, local collaborations, and educational content (e.g., how to alter garments). Creators can also negotiate longer-term brand ambassadorships with domestic labels that value brand safety.

Challenge: Consumers losing affordable options - The problem: The Cato Institute and other commentators warned that removing de minimis protections could negatively affect lower-income consumers who relied on cheap imports. - Solution: Policymakers and private sector should expand access to affordable domestically produced clothing (e.g., incentives for local manufacturing), support community clothing programs, and promote secondhand marketplaces. Retailers could develop low-cost but quality-controlled lines aimed at price-sensitive customers.

Challenge: Environmental and waste issues remain - The problem: Rapid cycles of cheap consumption created mountains of textile waste, regardless of platform collapse. - Solution: Normalize clothing recycling, repair culture, and resale marketplaces. Platforms and brands can offer buy-back, repair credits, and recycling drop-offs — and creators can use their influence to normalize these behaviors.

Challenge: Trust erosion in shopping content - The problem: If haul culture was partly built on paid promotion and opaque economics, viewer trust suffers when the math changes. - Solution: Creators and brands must double-down on transparency. Disclose when items are sent for promotion, show real pricing including shipping and tariffs when relevant, and test items live over time to demonstrate durability.

These solutions are pragmatic and require coordination between creators, brands, platforms, and policymakers. The change is an opportunity to reset the culture around what “cheap” and “trendy” should mean.

Future Outlook

What happens next to haul culture, fast fashion, and Gen Z shopping norms? Expect an uneven, multi-year transition.

1) Haul content will evolve, not vanish - The genre will persist but morph. Where once the thrill was volume and low price, future hauls will sell curation, thrift scores, sustainability wins, and styling education. Creators who adapt will lead the narrative shift.

2) A marketplace rebalancing - Expect the U.S. market to stabilize around a blend of domestic value brands, secondhand platforms, and curated fast-fashion that balances price and quality. Traditional retailers that adapted quickly (Walmart, Target) will keep gains if they continue listening to younger consumers.

3) Regional shifts in strategy - Companies may redeploy growth to regions with friendlier trade terms. Temu and Shein’s European gains (Temu +60% early May; France near +100%) show that geopolitical arbitrage remains a strategy. But long-term brand trust depends on consistent policy compliance and service reliability.

4) Regulatory impacts and geopolitical realignment - The 2025 executive order and the de minimis clampdown are part of a broader reassessment of trade with China. More regulation is likely, and businesses will need to build resilient supply chains with regional diversification and better compliance mechanisms.

5) A cultural recalibration around consumption - Gen Z’s values are evolving. The generation that boosted haul culture also shows growing interest in sustainability, resale, and authenticity. The shock of price changes plus increasing awareness of labor and environmental issues may accelerate a broader adoption of circular fashion practices.

6) New creative formats and monetization - Creators will develop content monetization that’s less dependent on brand freebies. Paid subscriptions, affiliate partnerships with local boutiques, and community-driven commerce (micro-marketplaces, live selling) will grow.

The overall landscape will be less dominated by a few ultra-cheap platforms and more distributed across sustainable options, domestic alternatives, and new content forms. That’s a healthier ecosystem for creators and consumers — even if it removes the easy dopamine of twenty-dollar hauls.

Conclusion

The Great Haul Collapse of 2025 was more than an app-store glitch or a fad dying out. It was an unmasking of a system — one where algos, ads, and a trade loophole combined to create a culture of near-free consumption. Temu and Shein didn’t fail because consumers suddenly stopped liking cheap clothes. They failed because a business model built on regulatory arbitrage and massive paid growth could not survive a policy correction and a quick retrenchment of ad budgets.

For Gen Z, the era of haul videos taught a lot: how to find bargains, how to create content fast, and how to turn shopping into entertainment. The fallout teaches an even more important lesson: trends are fragile when they rely on hidden mechanics. The rise and fall of haul culture reveals who profits from cheapness, who bears the external costs, and how quickly global trade policy can reshape everyday habits.

Actionable takeaways: diversify where you shop, demand transparency from creators, pivot content toward longevity and ethics, and support circular solutions like thrift and resale. The Great Haul Collapse is painful for some and revealing for all — but it’s also a chance to rewrite the rules of how we consume fashion online. If you loved haul videos for the thrill, don’t mourn them; evolve what they mean. The next wave of shopping content can be smarter, more ethical, and more creative — if creators and consumers choose it.