Temu in the West: Just Hype or the Future of eCommerce?

Cheap, cheaper, ultra-cheap – when it comes to low-cost shopping, there are many options in eCommerce. Among them is the Temu marketplace, a replica of Pinduoduo.com designed for international markets outside of China. It commercializes factory-to-consumer or F2C sales. 

In just two years, Temu has gained tremendous traction in Western countries. It is cheaper and younger than most retailers. Is Temu here to stay? 

Temu’s Global Reach Deepens 

For Temu, it is about prices, endless products, and discounts on top. Its marketing is successful, as you probably heard about Temu on the Super Bowl, the UEFA Euro or Olympic Games. Consumers are exposed to Temu all over the internet, be it through sponsored search engine or social media posts. 

Temu adapts and grows, which is why even market leaders are rolling out comparable concepts to stay on top of the wave: Something must Temu be doing right. Temu plans to stay, which is visible in its strategic moves, given collaborations with courier services such as DHL and a general shift towards the local-to-local marketplace model. 

Instead of shipping from China to Europe, avoiding tariffs means moving closer to the scene. Local businesses are ready to engage in most cases, given an increase in revenue and exposure to larger audiences. Temu’s conditions on seller fees are most likely going to determine more longer-range success though. 

A Product Mix That Is Likely Going to Evolve 

What does Temu sell anyway? Yes, it is a little of everything, but what exactly is that?  

Fashion is currently Temu’s strongest vertical, accounting for 41% of its total GMV, followed by Electronics (26%). Other categories such as Hobby & Leisure (11%), and Care Products (10%), as well as Furniture & Leisure (7%) & DIY (4%) are smaller, but play a supporting role. 

The future of Temu’s product mix is likely to evolve, given the current restructuring of its logistical route and seller affiliation. That makes it easier to send bulkier packages and enhance Temu’s appeal. Retailers like Wayfair already feel the effect of Temu’s success in selling what everyone sells – but cheaper. 

Market Expansion Despite Tariff Disputes 

It’s a curious case with Temu, all of a sudden it was everywhere. Within just two years of operation, it is now available in more than 30 markets. 

Of those, the United States is Temu's top market. 49% of Temu’s GMV is generated in the U.S. Other leading regions are Japan (12%), the UK (8%), Germany (6%), France (6%), Italy (5%) and Australia (5%). 

Temu serves customers all over the globe, except for Africa. Latin America and Australia belong to its markets of operation, just as destinations in Europe or North America do. 

The impending tariffs are – by intention – a direct blow to businesses like Temu. A tax of several times the original product price is designed to turn the D2C business model unprofitable real quick. But this is for products from China; Temu will use logistics and manufacturing facilities in the country of operation to remain in business. 

Verdict: All Factors Even, Temu Is More Than a Hype 

Temu is aiming at becoming the go-to marketplace for products of all kinds, with an added self-discovery journey that consists of games, discounts, and social elements. 

So is Temu here to stay? For now, yes. Temu's growth isn't just hype – it's backed by numbers, a smart business model and perfect timing. It came at a time when consumers were struggling with rising costs due to economic challenges and instability. Temu has long been touted as the next Wish, but all signs point to Temu becoming a force to be reckoned with. 

What sets Temu apart is not just its timing, but its ability to adapt: whether it's logistics partnerships like the one with DHL, or first steps toward compliance with international regulations. This suggests that Temu isn't just looking for short-term gains, but is building a model with long-term potential. That could turn Temu from a discount sensation into a mainstay of Western eCommerce.