EU Custom Code Reform Advances on March 26: What Cross-Border Sellers Should Know
Reading Time: 3 minutes On March 26, 2026, the European Parliament and the Council reached…
When the US de minimis exemption ended in April 2025 and tariffs on Chinese imports spiked, Temu’s marketplace hit a wall. Their ultra-low prices evaporated overnight. Ad campaigns paused. Catalogs shrank. For months, the Chinese marketplace seemed like they’d given up on the US market entirely. But they didn’t leave, they evolved.
Fast forward to Q3 2025: Temu is back among the top downloaded shopping apps in the US, operating with a leaner, smarter, and more diversified strategy. Local US sellers are now a core part of this pivot as Temu builds Western supply chains to stay competitive in a post-tariff trade environment.
Temu’s post-tariff model means new opportunities for Western businesses to tap into its massive customer base. This blog is your guide for selling on Temu in 2025.
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What is Temu?
Temu burst onto the global eCommerce scene in 2022 with one disruptive idea: factory-to-consumer pricing. By eliminating middlemen and shipping directly from Chinese factories, Temu offered shoppers rock-bottom prices and a massive product catalog.
By 2023, it had:
- Fulfilled over 412 million orders worldwide (source: backlink.io)
- Become the #1 downloaded shopping app in both the US and UK
- Captured millions of price-conscious consumers with its aggressive ad campaigns and gamified shopping experience
But 2025 tells a very different story.
Temu’s Post-Tariff Pivot: From Global Factory to Local Marketplace
In April 2025, the US de minimis exemption ended, meaning small-value imports were no longer tariff-free. Tariffs on Chinese goods skyrocketed, forcing Temu to pause its US ad campaigns, remove much of its catalog, and reprice items, some doubling or tripling in cost.
Yet Temu didn’t exit the market. Instead, it pivoted aggressively:
- Onboarding US-based sellers to diversify its supply chain
- Investing in regional warehouses for faster, tariff-compliant fulfillment
- Adjusting its model to better fit Western regulatory environments
The same transformation unfolded in the EU, where tighter VAT rules and cross-border trade barriers accelerated Temu’s shift toward local seller ecosystems.
Seller Misconceptions
“Is Temu only for Chinese factories?”
No. While Temu initially relied heavily on Chinese suppliers, it’s now welcoming local businesses and individuals in the US, UK, and EU to build out its product catalog. This is part of its strategy to avoid import tariffs and shorten delivery times.
“Does Temu operate like Amazon?”
Not quite. Unlike Amazon, where sellers have full control over pricing and fulfillment, Temu retains tight control over retail pricing, marketing, and even fulfillment standards. Sellers need to align with Temu’s operational playbook to succeed.
The State of Temu in 2025
Who Can Sell on Temu?
Temu’s seller program is open to:
- Individuals (sole proprietors with government ID)
- Small businesses and SMEs
- Large manufacturers and brands
“Is Dropshipping allowed on Temu?”
No, Temu does not officially permit or support dropshipping. Although you can technically purchase products from Temu and fulfill orders yourself for your own store, this practice is not officially endorsed.”
Requirements by Region:
| Region | Requirements |
| US | SSN/EIN, local bank account, ability to self-fulfill or use Temu warehouses |
| UK/EU | Registered business entity, VAT ID, local bank account, compliance with local product safety standards |
There’s no invite code or referral needed. For non-Chinese sellers, this is a rare opportunity to gain an early-mover advantage in Temu’s emerging “Western seller ecosystem.”
Setting Up Your Temu Seller Account: A Step-by-Step Guide
Getting your products in front of Temu’s massive audience starts with setting up your seller account correctly. This isn’t just a sign-up form; it’s about aligning your business with Temu’s marketplace standards so you can start selling without roadblocks. Here’s how to do it:
US Temu Seller Account Setup
For US sellers, Temu has simplified the onboarding process to encourage domestic participation after tariff changes in 2025.
Step 1: Create a Temu Seller Account
Register directly on the Temu US Seller Portal. No invite code is needed.
Step 2: Submit Documents
- Business license, SSN, or EIN
- Active bank account details
- Contact info and, if requested, product samples
Step 3: Build Your Seller Profile
Add a store name and profile photo visible to shoppers.
Step 4: Add Product Listings
A well-optimized product listing not only helps your items appear in Temu’s search results but also draws in more buyers. Here’s how to get it right:
- Upload High-Quality Images
- Write Detailed, Buyer-Friendly Descriptions
- Price Competitively
- Optimize for Temu’s Search Algorithm
Need help with your listings optimization for maximum success this BFCM?
Step 5: Configure Fulfillment
Choose between:
- Self-Fulfillment: Ship orders yourself within 48 hours using approved carriers.
- Warehouse Fulfillment (invite-only): Send inventory to Temu’s US warehouses for FBA-style handling.
EU/UK Seller Account Setup
Selling on Temu in the EU involves additional steps due to strict tax and trade rules.
Step 1: Create a Temu Seller Account
Register at Temu EU/UK Seller Portal. Select your EU business location carefully; it determines tax settings and is non-editable later.
Step 2: Submit Documents
- Business registration certificate
- VAT certificate (or OSS if selling cross-border)
- Proof of address (utility bill or bank statement)
- IDs for directors and beneficial owners
Step 3: Set Up Store Information
Follow strict naming and logo guidelines:
- No trademarks or product categories in store names
- No solid color logos, religious symbols, or flags
Step 4: Configure Tax Settings
Upload VAT information and configure VCS (VAT Calculation Settings).
If selling cross-border: Upload OSS certificate for tax compliance.
Step 5: Create Shipping Templates
Define fulfillment parameters and exclude regions you can’t serve.
Step 6: Link Bank Account
Provide bank details and supporting documents for account owners.
How long does Temu take to approve a seller?
Temu seller account approval can take anywhere from 1 to 3 business days. However, the process can be longer, potentially up to 15-20 business days or more, depending on the volume of applications and the specific details of your business.
Temu Seller Account Setup Checklist
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How Much Does Temu Charge for Selling?
Selling on Temu comes with relatively low fees compared to other marketplaces, but understanding them is crucial for maintaining healthy margins. Here’s a breakdown of what you’ll pay as a Temu seller.
Temu’s Fee Structure
Example Calculation: Selling a Stainless Steel Water Bottle
| Item | Amount (£) |
| Retail Price | £9.99 |
| Commission (5%) | £0.50 |
| Fulfillment (TAF fee) | £1.00 |
| Net Revenue per Sale | £8.49 |
| Product Cost | £4.50 |
| Net Profit | £3.99 |
How and when does Temu pay sellers?
Temu’s payments are directly deposited into the sellers’ bank accounts. Temu processes payouts weekly or after delivery confirmation, ensuring sellers have a predictable cash flow cycle.
Tips for Selling on Temu
1. Price Strategically to Stay Competitive
Temu’s search algorithm heavily favors the lowest-priced items in each category. To remain visible without cutting margins to the bone:
- Bundle Products: Offering multi-packs (like two reusable water bottles for £17.99) increases your average order value while helping you compete on unit price.
- Use Psychological Pricing: Price at £9.99 instead of £10 to appeal to budget-conscious buyers.
- Leverage Platform Promotions: Participate in Temu’s flash sales or platform-subsidized discounts to gain traction early.
Caution: Temu may initially subsidize discounts to attract customers, but sellers should plan for sustainable pricing once these subsidies end.
2. Prepare for Returns and Refunds
Temu’s generous 90-day free return policy (for most products) can be challenging for sellers, especially in categories prone to higher return rates.
- Build a Returns Reserve: Set aside a portion of revenue to cover restocking and refund costs.
- Maintain High-Quality Listings: Clear product descriptions and professional photos reduce buyer misunderstandings and minimize returns.
- Monitor Performance Metrics: Temu tracks delivery speed, accuracy, and customer satisfaction. Poor metrics could lead to account flags or suspension.
3. Scale Smart with Multi-Channel Selling
As your Temu store gains traction, consider strategies to scale without overextending:
- Invest in Temu Ads: Sponsored listings (currently limited) can improve product visibility in competitive categories.
- Sync Inventory Across Platforms: Use third-party connectors like CedCommerce to manage stock levels across Temu, Shopify, WooCommerce, and other marketplaces. This prevents overselling and improves operational efficiency.
- Expand Your Product Line Strategically: Track Temu’s trending categories to add complementary products that fit customer demand patterns.
4. Diversify Your Sales Channels
Temu can be an excellent channel for budget-friendly SKUs or surplus stock, but it may not suit premium or niche products. To build a resilient business:
- Treat Temu as one part of your eCommerce strategy.
- Position higher-margin or branded items on platforms like Amazon, Etsy, or your own DTC store.
Click here to learn about Temu + SHEIN + TikTok Shop: Emerging marketplaces in 2025.
