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WELL ... THAT WAS FAST. TEMU'S FULLY MANAGED MODEL IS BACK
Last week, I posted how Temu had completely halted its fully managed model for the US, in which packages were shipped directly from Temu's Chinese warehouses to consumers.
I expected this to be temporary if the tariffs were significantly reduced. As I mentioned before, the cancellation of de minimis would never have been a complete show-stopper for Temu if the tariff increases remained below 50%. They currently are 30% and might go down even further because this still includes a 20% fentanyl penalty.
As expected, the fully managed model is coming roaring back. Temu's purchasers have informed merchants as follows:
"Based on the favourable tariff negotiations, the US fully managed model is preparing to return. Please pay attention to timely stocking the warehouse."
Merchants are asked to urgently request a replenishment order if their stock of hot-selling items is insufficient.
Recently, Temu also launched what they call the 'Y2 model', in which merchants in China ship directly from China to US consumers (comparable to drop-shipping). Temu announced: "After the tariff reduction, the cost of the Y2 model has dropped significantly. Products that did not have a price comparison advantage before now have an advantage. Please re-list the products that did not have a price comparison advantage before and submit them for review. "
So, as expected, it looks like direct shipments from China by Temu are back in the US.
Source: 出海商家
To better understand what is happening, I still urge you to read the Temu Watch #7 report on Tech Buzz China. The report is usually behind our paywall, but it is temporarily free to read. For those active in e-commerce in the EU, go read it because it will explain why the cancellation of the EU's 150 euro tax exemption also won't stop Temu.
- Ed
