Temu has officially opened its marketplace to US-based sellers in a strategic move that could help it compete more closely with Amazon. Sellers with US-based warehouses are now listing their products on Temu, marking a shift in strategy that aims to offer quicker shipping than before. This move may also position Temu to better compete with US e-commerce giants like Amazon.
Previously, Temu operated using a “managed marketplace” model that involved manufacturers consolidating inventory in warehouses in China and shipping orders across borders from there. This resulted in longer shipping times but lower prices compared to competitors. 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 that this new arrangement will enable Temu to include bulkier, higher-priced items on the platform and reduce exposure to volatility in long-haul shipping costs. The platform is already highlighting product listings from US-based sellers with badges indicating “local warehouse” and “faster delivery.”
While the new model is gaining traction, it’s worth noting that the sellers currently on the US marketplace are primarily Chinese sellers with warehouses in the US, not American brands. Offering faster shipping options could give Temu a competitive edge against established e-commerce players like Amazon.
Despite its rapid growth in the US, Temu still has ground to cover in terms of overall sales volume. The shift to US-based sellers could also help mitigate potential regulatory risks, particularly concerning de minimis shipments, which have attracted attention from US lawmakers.
Overall, Temu’s move to open its marketplace to US-based sellers signals a significant shift in strategy that could reshape its competitive position in the e-commerce landscape.