🚚 Local warehouses power growth
Temu launched in Europe in 2023 and began inviting European sellers by August 2024. By December 2024, Temu established local warehouses across Europe. These facilities in Germany, France, Spain, Italy, and more now handle most deliveries, cutting delivery times to days instead of weeks. Temu aims to process 80% of European sales via these centers, supporting faster fulfillment for customers and sellers.
📢 Retail media strategy
Temu is also testing retail media, where sellers pay for better ad placement on the platform. This strategy, common in e-commerce, is currently being piloted in the U.S., with plans to expand to Europe soon. Retail media offers sellers new ways to increase visibility, driving sales and revenue within Temu’s growing ecosystem.
❌ Compliance challenges
Despite growth, Temu faces challenges with product compliance in Europe. Authorities recently flagged many Chinese products on platforms like Temu for violating EU rules. This remains a hurdle as Temu scales in Europe. Compliance and customer trust will be key for long-term success in the region.
🌍 European market expansion
Temu continues to expand, recently adding Austria to its delivery network. Its local-first strategy and focus on logistics are reshaping how it competes with established players like Amazon. Faster deliveries, seller support, and innovations like retail media position Temu as a formidable e-commerce player in Europe.
How will local warehouses reshape e-commerce in Europe?
