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 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, where manufacturers consolidated their inventory in warehouses in China and shipped orders 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, showcasing products that ship from local warehouses with badges indicating “faster delivery.”
Analysts believe this change will allow Temu to offer bulkier, higher-priced items on its platform and reduce exposure to long-haul shipping costs. The new arrangement also enables sellers to offer different assortments in their US stores compared to their Chinese counterparts.
US Amazon sellers have shown eagerness to sell on Temu, with Chinese sellers who have US warehouses being the first to join the new marketplace. Offering faster shipping options could help Temu compete more effectively with US e-commerce players. Additionally, this move may help the company mitigate potential regulatory risks associated with its use of de minimis shipments.
While Temu has experienced rapid growth in the US, it still has a long way to go to catch up in terms of overall sales volume. The company’s decision to onboard US merchants aligns with its goal of expanding its presence in the market.