Temu has officially opened its marketplace to US-based sellers, marking a strategic shift that could help it compete more closely with Amazon. Sellers with US-based warehouses are now listing their products on Temu, allowing for quicker shipping and potentially better competition with US e-commerce players.
Previously, Temu operated using a “managed marketplace” model that involved shipping orders from China, resulting in longer shipping times but lower prices. However, the new model allows US-based sellers to handle fulfillment and logistics themselves, offering products that ship from local warehouses with faster delivery.
Analysts believe this new arrangement will allow Temu to offer bulkier, higher-priced items on the platform and reduce exposure to volatility in long-haul shipping costs. The move has garnered interest from US Amazon sellers who are eager to try selling on Temu.
While Temu has seen rapid growth in the US, it still has a way to go to catch up in terms of overall sales volume. Offering faster shipping options could help the platform better compete with e-commerce incumbents like Amazon.
Additionally, the shift may help Temu lessen potential regulatory risks, particularly regarding de minimis shipments. The company’s use of de minimis has attracted attention from US lawmakers, prompting discussions around reforming the provision.
Overall, the move to open its marketplace to US-based sellers represents a significant step for Temu in expanding its reach and enhancing its competitiveness in the e-commerce market.