Temu opens doors to U.S. sellers and sets stage for European expansion

Temu, the most downloaded shopping app, is set to broaden its horizons beyond Chinese sellers. According to a recent research, the current 100,000+ sellers on Temu are exclusively Chinese-based due to the platform's requirement for wholesale pricing agreements and bulk shipments to its Chinese warehouses. This approach, akin to a consignment model or fully-managed marketplace, sees Temu handling various aspects including listing, marketing, fulfillment, and customer service.

However, a significant shift is on the horizon. Reports indicate that starting March 15th, Temu will open its doors to U.S. sellers, with plans to incorporate European sellers shortly after. Unlike their Chinese counterparts, U.S. and European sellers won't be obligated to ship goods to China: instead, they'll manage fulfillment from their domestic warehouses. Additionally, Temu won't oversee pricing or marketing for these sellers, aligning more closely with the models of Amazon, eBay, and Walmart.

While this move streamlines the onboarding process for U.S. sellers, it presents challenges reminiscent of those faced by similar platforms attempting to diversify beyond Chinese suppliers: past efforts by Wish, AliExpress, and others have struggled to attract a significant number of domestic sellers and shift consumer perceptions.

Temu's evolution goes beyond accommodating U.S. sellers; it marks a strategic shift toward quicker delivery, currently unavailable on the platform (leveraging sellers with domestic warehouses is key to achieving this goal). Ultimately, Temu aims to move away from solely shipping packages from China, aiming to serve customers in over 40 countries with goods sourced from a variety of locations.