Selling on Temu presents a low-barrier opportunity for private-label e-commerce brands, though its current impact remains modest. Following the removal of De Minimis, which caused a 40% drop in U.S. traffic, Temu shifted its strategy toward recruiting domestic sellers to maintain competitiveness. Unlike Amazon’s fixed referral fee model, Temu functions by having sellers set a base price while the platform manages final retail pricing and promotional stacking. Logistics are streamlined through support for Amazon’s Multi-Channel Fulfillment (MCF), allowing for efficient shipping without branded packaging. While current sales volume for established brands may be low—averaging roughly 10 orders monthly—the lack of monthly fees or listing costs makes it a viable, low-risk experiment. Success on the platform hinges on competitive pricing and potential seasonal spikes, particularly during holiday periods, rather than heavy advertising investment.
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