Temu has officially opened its marketplace to US-based sellers, marking a strategic shift that could help it compete more closely with Amazon. The move allows sellers with warehouses in the US to handle fulfillment and logistics themselves, offering quicker shipping times and a different assortment of items compared to their Chinese counterparts.
Owned by Chinese retail giant Pinduoduo Holdings, Temu previously operated using a “managed marketplace” model that involved shipping orders from China, resulting in longer shipping times but lower prices. The new model aims to reduce shipping costs and offer bulkier, higher-priced SKUs.
US Amazon sellers have shown eagerness to try selling on Temu, with Chinese sellers who have US warehouses being the first to join the platform. This shift could help Temu better compete with US e-commerce players like Amazon, while also reducing potential regulatory risks related to de minimis shipments.
While Temu has experienced rapid growth in the US, it still has a long way to go in terms of overall sales volume. The company’s use of de minimis shipments has attracted attention from US lawmakers, leading to calls for reform of the provision. Temu has expressed willingness to support fair reforms to the de minimis policy.
In a similar move, Shein, another China-linked e-commerce marketplace, began onboarding US merchants last year. The company has been actively participating in e-commerce conferences to expand its presence in the US market.
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