The change has additionally confused Temu sellers in China, who apparently weren’t notified forward of time that Individuals would quickly not have the ability to browse their merchandise. Including to the confusion is the truth that Temu allegedly eliminated a lot of China-based sellers from its platform final week, solely to rapidly reverse the measure, main some sellers to initially consider the identical difficulty was occurring once more, in accordance with sellers who shared their experiences on the Chinese language social media website Xiaohongshu.
The furnishings and residential decor vendor confirmed to WIRED that every one his merchandise shipped from China have been eliminated, a choice they consider was made in response to the top of the “de minimis” exception, a rule that enables Individuals to import packages from anyplace on this planet valued below $800 while not having to pay import duties.
Temu, Shein, and different corporations that ship buyer orders immediately from China have benefited from the commerce provision for years, however critics say it has given overseas on-line buying platforms an unfair benefit. Trump issued an govt order earlier this yr declaring that de minimis would not apply to shipments from China beginning on Could 2.
“It could be that the platform must make some regulatory changes throughout this tough interval,” says the Temu furnishings vendor.
Ultimately, Trump’s commerce battle could basically alter the best way Temu operates within the US and its methods for retaining American prospects. The corporate turned common within the US each due to its lavish promoting spending and the truth that it might persistently present decrease costs for comparable gadgets provided on different ecommerce platforms. With excessive tariffs on Chinese language imports and the top of de minimis exemption, the price of Temu merchandise might go up fairly considerably, and it could additionally take longer for folks to obtain packages now topic to a extra rigorous customs clearance course of.
Even earlier than Trump introduced the tariffs, Temu was already making modifications to its enterprise mannequin, together with storing extra stock in US-based warehouses and experimenting with a extra conventional, Amazon-esque logistics construction. The platform can be at present exploring one other delivery program it calls “Y2,” which Temu began onboarding Chinese language sellers to on April 27, in accordance with Chinesellers, a publication centered on cross-border ecommerce.
Because the publication explains, Y2 is a extra versatile variation of Temu’s present US warehousing mannequin, with sellers delivery particular person orders somewhat than bulk stock. However the sellers are accountable for dealing with the brand new tariffs and customs declaration course of, in addition to any issues which will include it, somewhat than Temu shouldering the burden. In some ways, it’s just like an present Amazon logistics possibility known as “Achievement by Service provider,” or FBM.
These platform-wide modifications spotlight how fast Temu has been adapting to the present risky coverage setting, however the firm additionally dangers dropping what was as soon as a core a part of its identification and comparative benefit. “It strikes me as an enormous step backwards for Temu. What has actually helped Temu differentiate itself from Want and AliExpress is it controls the provision chain, so it might probably assure the supply pace and the extent of high quality assurance to supply a constant expertise,” says Kaziukėnas.
The furnishings Temu vendor tells WIRED that they’ve to date held again from leaping on the Y2 wagon. “We’re a big group, so we won’t make modifications in a single day. We’re nonetheless observing to see if the insurance policies will change,” the vendor explains.
Temu can be making an attempt to extend its gross sales in different markets like Europe, the place tariffs on Chinese language imports stay far decrease than within the US. One Chinese language Temu vendor tells WIRED that whereas their US listings have been eliminated, their total gross sales have elevated as a consequence of development from different areas.