Shein has retaken its second position in Australia’s most-visited fashion websites according to new Semrush data, with industry leaders calling for government intervention to level the playing field.
In January 2025, Shein sat behind Myer in terms of total website traffic, with 5.13 million visits – up 5.33 per cent year-on-year.
In third place is the Shop app, managed by Canadian-born and now global e-commerce company Shopify. The Shop app recorded a 46.3 per cent lift in January 2025 website traffic compared to January 2024.
Both Shein and the Shop app have knocked The Iconic out of its second place spot which it had held in December, with the Australian fashion platform’s website traffic falling by 1.46 per cent year-on-year in January to 3.94 million. The Iconic’s traffic is also down 34.03 per cent from December.
In fifth place was David Jones at 2.91 million visits in January, up 1.76 per cent.
“These numbers reflect the shift towards price-driven, mobile-first shopping experiences,” Australian Fashion Council CEO Janna Quaintance-James. “While this highlights the importance of digital, it also raises concerns about the dominance of international online marketplaces like Shein and its impact on local brands.”
Well-before the release of these new numbers from Semrush, the AFC tabled a federal budget submission, calling for an inquiry into whether the growth in global platforms like Shein and Temu has been enabled by unfair business practices that is creating an “unfair playing field”, with Quaintance-James raising concerns around alleged human rights violations, tax avoidance and monopolistic supply chain behaviours.
“To level the playing field, government support is needed to hold global marketplaces accountable,” Quaintance-James said. “The AFC is calling for an inquiry into Overseas Online Marketplaces that will advise policy changes to address tax loopholes, enforce ethical sourcing standards, and invest in local manufacturing and innovation.”
Duty and taxes
Late last year, the Australian Border Force (ABF) responded to a commentary request by Ragtrader on recent claims around duty and tax compliance by international retailers such as Shein and Temu.
The ABF stated that there are two separate charges that may apply to imports: Customs Duty and Goods and Services Tax (GST).
“Customs Duty is typically not applicable on imports that are valued under AUD$1000,” an ABF spokesperson reported. “Some exceptions apply such as excisable goods.”
With GST, the ABF spokesperson said the way it is collected differs between goods with a customs value of less than$1000 (low value goods) and goods with a customs value of more than$1000.
“GST on low value goods (LVGs) is a tax managed by the Australian Taxation Office (ATO),” they said. “It generally requires non-resident businesses including merchants, electronic distribution platforms (EDPs) or re-deliverers that meet GST registration requirements to charge and collect GST on all taxable LVGs at the point of sale.
“Non-resident businesses operating in Australia, including Shein and Temu, are required to register with the ATO and remit all GST that they collect from their customers who use their platforms and import their purchases into Australia.”
“The ABF enforces all applicable Customs Duties and taxes on goods valued over AUD$1000 as they enter Australia.”
Call-outs continue
The AFC is not the only industry leader calling for government intervention, with Harvey Norman chair Gerry Harvey also demanding an inquiry. According to a news report by The Nightly, Harvey called platforms like Shein and Temu “pariahs” that don’t pay taxes or employ local people.
“It’s a very difficult situation for Australian retailers to combat,” he told The Nightly last month.
“They never pay any tax here, they don’t employ anyone… there should be a government inquiry into it as to what ramifications are there and whether they should or shouldn’t do something about it.
“It’s a real worry, do you let it just go or not, I think it’s worth an investigation.”
Meanwhile, Australian Retailers Association chief industry affairs officer Fleur Brown said while new business and increased competition in the retail sector is good for business and Australians, “the playing field needs to be even”.
“The emergence of ultra-cheap online retailers operating without an on the ground presence in Australia means they are not necessarily held to the same levels of regulatory compliance as Australian-based retailers, including product safety standards,” Brown said.
“This can create risks to the community, from poor product quality to environmental implications.
“It’s in the interests of the community that consumers are aware of the risks and impacts ultra-cheap businesses can have, and that we have appropriate solutions in place to ensure all businesses comply with regulations consistently.”
A media report by fashion masthead Elle last month indicated fashion and beauty products sold on Shein and Temu contain dangerous levels of toxic chemicals, according to a series of studies.
The masthead reported that the Seoul Metropolitan Government conducted product testing which found that items like shoes and nail polish sold on sites like Shein, Temu and AliExpress contained chemicals, like phthalates and formaldehyde, “at dangerous levels.”
“Traces of PFAs (polyfluoroalkyl chemicals) and lead were also found. Some of the chemicals are carcinogenic or endocrine disruptors, and can also exacerbate conditions like dermatitis and eczema,” the Elle story reported.
Meanwhile, Temu was forced to recall a flammable glow-in-the-dark jumper after an eight-year-old Australian girl suffered burns late last year.
According to the ACCC, the hoodie did not comply with the mandatory standard for nightwear for children. “It doesn’t include the required warning label,” the ACCC’s Product Safety website shared.
Brown added that Australian fashion brands have a clear advantage despite the rise of Shein and Temu, where they can compete on quality, transparency and sustainability while delivering Australian jobs and economic value.
“Consumers are increasingly aware of ethical concerns, presenting an opportunity for local businesses to differentiate through Australian-made credentials, responsible sourcing, and fair workplace practices,” Brown said.
Inside Shein
Regarding supply chains and ethics, Shein reported in its last modern slavery statement for the year 2023 – shared on Australia’s Modern Slavery Register – that its policies and programs “strictly prohibit the use of forced labour and child labour”, and that it has established a “clear due diligence process” to identify and resolve any such violations in the supply chain.
“Shein Australia has adopted and implemented, and therefore abides by Shein policies and processes, including those relating to supply chain governance.”
The nine-page modern slavery statement by Shein did not report where its suppliers are based, but it’s assumed a large portion will operate in China – similar to many Australian fashion brands which get their goods manufactured in the country.
“As an online retailer, Shein Australia sells Shein-branded products which are manufactured by third-party contract manufacturers, as well as non-Shein branded products from finished product vendors, primarily based in China,” the global fast fashion platform reported.
“In 2023, Shein worked with approximately 5,800 contract manufacturers. The supply chain for Shein-branded products also includes, without limitation, suppliers of textiles, packaging and other accessories for use by contract manufacturers, as well as other subcontractors of those contract manufacturers.”
Shein added that it does not have direct ownership of the facilities operated by the above-mentioned suppliers of Shein-branded products, but that it “expects those suppliers to share its commitment to ethical practices and human rights and has taken various steps… to encourage and incentivise good practice by its suppliers in this regard.”
“As for finished product vendors, such vendors are contractually obliged to ensure that their products are compliant with local laws and regulations, and safeguard against risks of forced and child labour.”
A Shein spokesperson told Ragtrader the company’s cost competitiveness is driven by its on-demand, small-batch production model, which they claim minimises overproduction, reduces waste and lowers costs.
“Shein is committed to complying with the rules and regulations in the countries we operate in, including Australia,” they wrote in a statement. “Shein pays applicable taxes including, but not limited to, GST, tariff, corporate tax, and labour taxes, as required.
“We also work to the best of our ability closely with our manufacturing suppliers to ensure that they are compliant with the Shein Supplier Code of Conduct (CoC), which is generally aligned to and complies with local laws and regulations as well as international conventions and standards”