You've probably seen the TikToks. Or maybe a frantic tweet or a Facebook post from your aunt claiming that the "Shein era" is officially dead and the site is shutting its doors forever. It’s one of those rumors that just won't stay buried. People love a good "downfall of a giant" story, especially when it involves a brand that changed how everyone shops.
Honestly? No. Shein is not closing in 2025. The company is actually aiming for a massive $2 billion net profit this year. That doesn't exactly sound like a business that’s about to pull the plug. But—and this is a big "but"—2025 is turning out to be the hardest year the company has ever faced. Between new laws, massive tax changes, and literal bans in some countries, the Shein you knew in 2023 is basically gone. It's evolving into something more expensive and way more regulated.
Is Shein Closing in 2025 or Just Getting More Expensive?
The biggest reason people think Shein might be closing is that the "glitch" that made it so cheap was fixed. For years, Shein used something called the "de minimis" exemption. Basically, if a package was worth less than $800, it entered the US tax-free.
That loophole is dead.
In early 2025, the US government officially scrapped that exemption for small international shipments. Now, those $5 tops and $10 jeans are getting hit with tariffs. You might have noticed that "free shipping" is harder to find or that prices have crept up by 10% or 20%. When prices go up, people stop buying as much. In fact, reports from late 2025 showed that Shein's US sales actually dropped by about 8% in a single month because the "cheap" factor started to fade.
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The French "Anti-Shein" Movement
If you live in Europe, the rumors feel even more real. France has been leading a literal crusade against ultra-fast fashion. In late 2025, the French government actually moved to suspend Shein’s platform temporarily. Why? Because they found things on the site that shouldn't be there—like category A weapons and some pretty disturbing "child-like" dolls.
Italy is currently working on its own version of an "Anti-Shein" law. These countries aren't just complaining about the environment anymore; they are passing laws to fine the company up to €10 for every item sold to offset the "environmental cost."
Why the "Shein Village" is Ghosting
If you want to see where the "closing" rumors actually come from, you have to look at the suppliers. In the Panyu district of Guangzhou—often called "Shein Village"—workshops are closing left and right.
It’s a domino effect.
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- The US adds tariffs.
- Shein tells suppliers they have to lower their prices to keep things cheap for customers.
- The suppliers, who are already making pennies, can't afford it.
- They go out of business.
So, while the Shein app isn't closing, a lot of the small factories that made the clothes are definitely shutting down. To survive, Shein has been begging its suppliers to move to Vietnam or Brazil. If they can’t move, they’re out of luck.
The IPO Drama: Is the Company Failing?
You might have heard the word "IPO" tossed around. This is basically when a private company like Shein tries to sell stock on the public market. It’s been a total mess.
They tried to list in New York. The US government said no way.
They tried to list in London. The UK regulators held it up over human rights concerns.
Now, as we head through 2025, they are looking at Hong Kong.
Their valuation has taken a massive hit, too. At one point, Shein was worth $100 billion—more than Zara and H&M combined. Now? Investors are looking at a valuation closer to $30 billion or $50 billion. That's a huge "sale" on the company's value, which makes it look like it's struggling to outsiders.
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What You'll Actually Notice This Year
If you’re a regular shopper, you’ll see the changes even if the site stays online.
- Slower Shipping: As they try to navigate new customs rules, those 10-day deliveries might turn into 20-day waits.
- Better Quality (Maybe?): They are spending $15 million this year just on safety testing because they keep getting caught with lead or chemicals in their clothes.
- More "Marketplace" Items: Shein is trying to be more like Amazon, letting other brands sell on their site so they don't have to carry all the legal risk themselves.
Honestly, the rumor that Shein is closing is mostly a mix of wishful thinking from environmentalists and a misunderstanding of how much the business model is changing. They are currently pivoting to survive a world that is tired of $2 t-shirts that fall apart in the wash.
How to Shop Smart if You're Worried
If you’re still shopping there but are worried about the company's future, here is the deal:
- Don't hoard points. If the site ever did have a sudden "blackout" or legal ban in your country, those points are worthless.
- Check the "Shipped From" info. Items shipped from local warehouses (in the US or EU) won't be affected as much by the new tariff drama.
- Expect price swings. Prices are going to be volatile all year as the company tries to figure out how much of the new tax burden they can pass on to you without losing you as a customer.
The brand is too big to just "vanish" overnight. They have too much cash and too many users. But the era of consequence-free, ultra-cheap shipping is definitely over.
If you want to stay ahead of the curve, keep an eye on their official press room or major financial news outlets like Bloomberg or The Financial Times. That’s where the real "closing" news would hit first—not on a viral TikTok with a "sad" filter.
Next Step: Check your Shein app settings to see if you have a balance or unused gift cards; it's generally a good idea to use those sooner rather than later while the company is navigating these massive regulatory shifts in 2025.