Temu, the upstart Chinese online retailer, has already taken a notable strategic turn. They aren’t sending product from China to the U.S. This decision is in direct response to the increased Section 301 tariffs on Chinese products. Since the signing of President Donald Trump’s executive order that eliminated the de minimis rule, tariffs have risen by more than 100%! This rule previously allowed goods valued at $800 or less to come into the U.S. duty-free. Most importantly, it made it more welcoming for international sellers.
Temu has been aggressively courting U.S. sellers to onboard onto its platform. This ensures the company’s customers a seamless experience and fast delivery of products kept in companies’ warehouses across U.S. The retailer will now show listings for products sold within the US. They will declare goods shipped from China as being out of stock. This strategic shift minimizes the effect of newly escalated tariffs. These tariffs hit Chinese companies like Shein just as hard as their American competitors including Amazon.
Temu’s recent changes are a reflection of a growing narrative across the retail world. Even online platforms have been scrambling to comply with new trade policy and tariff regulations. With consumers growing more price and fulfillment time sensitive, U.S. In order to improve customer experience and remain competitive in this cut-throat environment, Temu prioritizes local fulfillment.
“Temu has been actively recruiting U.S. sellers to join the platform,” said a spokesperson for the company. The current recruitment drive is part of an effort to expand Temu’s U.S. supplier base. Ultimately, it will allow for an exciting new era of faster shipping times and lower prices for consumers.
Temu has introduced a radical new rule that only products listed with U.S. warehouse availability can be shown. That is a big departure from their past dependence on long international shipping times from Chinese exporters. The company’s new strategy reflects a commitment to navigating the complexities of U.S.-China trade relations while continuing to serve its customer base effectively.