(Boston) — Temu, the fast-rising online marketplace owned by China’s PDD Holdings, is emerging as a favored destination for e-commerce sellers seeking new opportunities in a rapidly shifting retail landscape. Since its 2022 debut, Temu has expanded into more than 90 markets and is now aggressively recruiting U.S. sellers as it competes with Amazon, eBay, and Walmart Marketplace for merchant participation.
Lower Barriers and Broader Reach
Temu’s appeal rests largely on its low-cost structure and ease of entry. Unlike Amazon’s Fulfilled-by-Amazon model, Temu does not impose high referral or fulfillment fees, allowing merchants to retain more of their earnings. Industry analyses indicate that the platform currently offers among the lowest commission rates in online retail, while maintaining access to a fast-growing customer base that now exceeds 100 million app downloads across the U.S. and Europe.
The marketplace has also gained traction by offering flexible onboarding. In late 2024, Temu removed invitation requirements for U.S. sellers, enabling domestic businesses—from home-goods suppliers in California to fashion distributors in New York—to list directly through its self-service portal. That shift has opened the door for smaller retailers and manufacturers to reach a global audience without upfront marketing costs.
Domestic Fulfillment Advantage
Temu’s new U.S. fulfillment infrastructure has become another draw. Sellers can now ship from domestic warehouses through logistics providers such as ShipBob Inc. and EasyPost, reducing delivery times and expanding eligibility for fast-shipping promotions. The platform’s emphasis on localized inventory mirrors the hybrid logistics strategies already used by Amazon and Walmart, but at a lower operational threshold for new entrants.
Competitive Context
Temu’s expansion is reshaping the competitive dynamics of online retail. Its rise coincides with a slowdown in discretionary spending and an increasing consumer shift toward discount-oriented platforms such as SHEIN and Wish. For sellers navigating thinning margins on Amazon or eBay, Temu’s model offers a path to lower costs and greater visibility. Analysts note that sellers of private-label goods—particularly in apparel, beauty, and home décor—have been among the earliest adopters.
Challenges Ahead
Despite the growth, Temu faces structural risks. Its logistics network remains less developed than Amazon’s, and the platform’s reliance on ultra-low pricing raises concerns about long-term profitability. Merchants must also contend with evolving regulations governing cross-border trade and product safety standards in markets including the U.S. and the European Union.
The Broader E-Commerce Shift
For many sellers, joining Temu represents a strategic hedge—diversifying revenue streams while capturing early-stage growth on a platform backed by one of China’s largest e-commerce conglomerates. As PDD Holdings continues to expand its global footprint, Temu’s success underscores the broader transformation of online retail, where cost efficiency, speed, and global reach are redefining how independent sellers scale their businesses.