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Overview
Temu is a fast-growing global online marketplace operated by PDD Holdings, the owner of China's Pinduoduo. It is known for very low prices on a huge range of consumer products. In Europe, Temu is shifting from shipping parcels directly from China towards local warehouses and local sellers, and it now recruits European brands and retailers through its Local Seller Program. For a brand, Temu is a large but price-driven channel that requires careful thought about positioning.
Who is behind Temu
Temu launched in the US in 2022 and quickly expanded to Europe and many other markets. PDD Holdings is listed on Nasdaq. In the EU, Temu had nearly 94 million average monthly active users in 2025, and industry estimates put its EU gross merchandise value above USD 15 billion in 2025. The European Commission designated Temu a Very Large Online Platform under the Digital Services Act and opened formal proceedings in October 2024. In July 2025 it issued preliminary findings that Temu was not doing enough to stop illegal and unsafe products being sold. The case remains open.
The shift to local sellers
Temu's growth in Europe relied on low-value parcels entering the EU duty-free. Since 01.07.2026, a fixed customs duty of EUR 3 applies to each item category in low-value parcels from outside the EU, and further charges are planned. In response, Temu is moving towards local fulfilment: it has stated a goal of shipping about 80% of European orders from local warehouses and has signed logistics agreements, for example with DHL. Its Local Seller Program, active in more than 30 markets, lets European brands and retailers sell on Temu from their own local stock, and eligible sellers can list across several EU markets. Temu also runs a consignment model, in which it controls pricing.
What a brand should think about
- Price pressure. Temu shoppers expect very low prices, which can conflict with a brand's pricing elsewhere.
- Brand positioning next to unbranded, low-cost products.
- Brand protection against counterfeits and copycat products.
- Compliance and regulatory risk, given the ongoing EU investigation.
- Terms. Commission rates and conditions for new sellers vary by category.
Why Temu matters for brands
Temu reaches a very large European audience and is becoming more open to local sellers. Even brands that don't sell there should understand how it affects price expectations in their category.
How eBrands looks at Temu
eBrands works with brands on marketplaces across Europe and North America. If you want to talk through whether Temu makes sense for your brand, or how to protect your brand there, we are happy to help. See also our AliExpress page.
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