Note: This post reflects experiences from mid-2023. Temu’s policies and competition have changed significantly since then. Use as a reference, not a current playbook.
OP:
Been on Temu full-managed for about six weeks. Thought I’d share what I’ve seen—good and bad.
The bad:
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The platform is still figuring things out. Sellers are basically beta testers. You’re going to hit problems.
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Price cuts hit after you’ve shipped inventory. I’ve seen sellers get halfway through a product, then get told to lower their price. Refuse, and your listing gets throttled. I had a price cut request for $2.50—not huge, but annoying.
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Can’t reach category managers. Some products get flagged for random certifications that don’t apply.
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Warehouse slots are a fight. You literally have to stay up until midnight to grab a slot. Refresh like crazy.
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Small sellers sourcing from B2B platforms get crushed. Even if you get lucky, someone will undercut you. Eventually the factories themselves come in at even lower prices. Only sellers with strong supply chains, factories, or unique products survive long-term.
The good:
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Traffic is real. A $30–40 product did 5–6 units/day right after listing. More SKUs = more volume.
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If you have supply chain advantages, inventory risk is lower than FBA. Faster restocking, less capital tied up.
Bottom line: Ecommerce is about chasing traffic. Temu bleeds sellers to get traffic, then uses that traffic to attract more sellers. It worked for Pinduoduo in China—people can complain all they want, but traffic wins.
Margins are thin, but some sellers do make money. The ones who lose just end up subsidizing the platform. Expect a hierarchy: small sellers will struggle; factories and brands will survive.
Every major platform is rolling out full-managed models. Low-price ecommerce is here. Amazon won’t collapse overnight, but the pressure is real. The ones getting squeezed hardest? Probably small freight forwarders.
If you have the supply chain, jump in. The model isn’t going away. But keep your expectations realistic.
Answers (5)
But for brand builders? It’s not great. You’re giving up your brand and margin so the platform can scale. They’re sucking value out of sellers to fuel growth.
Temu is still in rapid expansion mode. It’s all low-price right now. But eventually they’ll need brands, just like Pinduoduo did with “brand subsidies.” The sellers getting crushed now are just stepping stones.
For sellers, the only real strategy is diversification. Use different platforms for different goals. Temu is good for clearing inventory or testing products. Single-platform strategies are risky.