Temu Expands Platform to Include Sellers With U.S.-Based Warehouses

Temu, the e-commerce retailer owned by Chinese company Pinduoduo, is expanding its platform to include sellers with U.S.-based warehouses. This marks a significant departure from Temu's previous operational model, which focused on direct product shipments from China. 

This new approach empowers U.S.-based sellers to manage their own logistics, promising faster delivery times for consumers. A Temu spokesperson confirmed the company's plan on Thursday.

Since its introduction to the U.S. market in 2022, Temu has gained traction by offering a diverse range of products at affordable prices. This includes everything from $5 sunglasses to $3 phone chargers.  It was the most downloaded free app on iOS devices last year, surpassing mainstays like Instagram and YouTube.

The company has over 100,000 merchants based in China selling goods on its platform. Factories ship their products to Temu warehouses in China, from which they are delivered directly to consumers in the U.S. and other countries. This streamlined process allows Temu to eliminate the middleman and offer lower prices. 

With its emphasis on quicker shipping alternatives, Temu is positioning itself as a formidable competitor against established U.S. e-commerce giants like Amazon. Despite its rapid growth, Temu aims to narrow the gap with its American counterparts.