Temu, a Chinese discount online retailer, is reportedly offering $1,000 to intermediaries for facilitating U.S. retailers to sell their products on its platform. This move comes as the company faces challenges due to tariffs initiated during the Trump administration.
This shift follows a recent change in U.S. regulations, which ended the “de minimis” exemption. Previously, this loophole allowed companies like Temu to import goods under $800 without incurring tariffs.
In light of this, Temu is working to broaden its network of U.S. sellers to minimize tariffs and shipping expenses on its offerings, which include clothing, jewelry, and home goods.
Amazon consultant John Elder remarked on this situation, stating, “Their beloved loophole is gone,” indicating a more aggressive approach by Temu as it seeks to become a budget alternative to Amazon.
A representative from Temu recently reached out to Elder, advising him to refer sellers and earn a $1,000 incentive, which he shared on LinkedIn.
Another consultant, Abeer Jawaid, confirmed that she received a similar offer from Temu.
A Temu spokesperson did not provide comments regarding the specific promotion or its ties to the recent elimination of the tariff exemption but did highlight the company’s accelerated efforts to connect with local sellers since the U.S. market opened to them in November 2024.
“Temu provides additional channels for local sellers to reach new audiences,” the spokesperson said. “We aim to support the growth of local businesses while providing more choices for consumers.”
Temu is part of PDD Holdings, a multinational company based in Shanghai and Dublin. PDD’s stock has surged about 40% since the year’s start, while their last quarter sales increased by 7% to $14.5 billion, though that was the slowest growth in some time, likely attributed to tariff implications.
Jessica De Gennaro, who runs Shop Succulents and started selling plants on Temu in February, received an email offering her a free trial “as if I wasn’t already on the platform.” She mentioned that her company was previously a seller and sought clarification on her eligibility.
Chris McCabe, a former Amazon account investigator turned e-commerce consultant, commented that some view the promotion as “reeking of desperation.”
In the past, Temu and its Chinese competitor Shein enjoyed significant growth before these tariffs were enacted.
The “de minimis” rule, which dates back to the 1930s, was originally designed to facilitate hassle-free souvenir imports for American tourists, but it also fueled the rapid expansion of fast fashion brands. A report earlier this year from the Congressional Research Service revealed Shein and Temu’s export value skyrocketed from $5.3 billion in 2018 to an astonishing $66 billion in 2023.
Currently, tariffs on products from China are set between 47% and 57%.
