The first profit in the category depends entirely on tax refunds? Temu sellers say it is too difficult

On Amazon, sellers who rank first in a category may not make a fortune, but at least they can guarantee a certain level of profit margin. However, a Temu seller said that even if they rank first in a category, the profit is still not optimistic.

Temu’s full hosting service ranks first in its category but still has no profit?

Recently, a Temu fully managed seller reported that one of his products has inexplicably become the first in a small category. However, despite this, the seller is not excited, but worried about the future.

According to the seller, his product was originally ranked around the top 5 in the category, but for some reason it suddenly jumped to the first place. He suspected that the previous sellers had already withdrawn from the store and ran away.

The reason for such doubts is that the sellers themselves are not having an easy time. Although they are now number one in the category, their actual profits are not stable.

The seller said, "Half of the profit was confiscated, and I can only make a little money from tax refunds. It's really unfair for me to do charity."

Regarding the issue of tax refund, many sellers have raised questions, because fully managed sellers are actually equivalent to suppliers of the Temu platform and do not involve issues of cross-border export declarations, so how can there be any tax refund?

However, from the seller's statement, he also mentioned that he not only provides full hosting in Temu, but also has semi-hosting business, among which several semi-hosting products have also achieved the highest level in the industry.

After consulting relevant information, Yien.com found that semi-hosted sellers can indeed get tax refunds through proper operations. If the seller's export company and the store company settled in TEMU are the same company, they can go through 9810 export customs declaration and prepare goods to overseas warehouses.

However, industry insiders have analyzed that under the 9810 model, the transaction of goods does not actually take place when they leave the country. The goods are only delivered to overseas warehouses and stored in overseas warehouses without being actually sold. Therefore, in actual operations, many tax bureau officials will require companies to wait until the goods are actually sold before applying for tax refunds, which means that the tax refund period will be longer.

But from the seller's point of view, it is indeed a bit hard to accept that after finally making the product number one in the category, they still have to find ways to deduct profits from various places.

The seller also added that the number of new products he launched last month was zero, and the buyers kept urging him to launch new products. When the seller saw this, he directly retorted: You are fined hundreds or thousands of dollars for each order, but you only make a few dozen dollars for each sale. At this time, the buyers dared not say anything.

It has to be said that fines have always been the most troublesome issue for Temu sellers, but there has been no effective solution so far.

Sellers collectively defend their rights, Temu fine angers the public

Some time ago, sellers who were driven crazy by the fines gathered at Temu's Aoyuan headquarters in Panyu District, Guangzhou, trying to get back part of the fines in this somewhat extreme way to reduce their losses.

On social media platforms, many sellers expressed their dissatisfaction with Temu’s high fines. Some sellers said that even if they found Temu’s office, the employees inside did not dare to admit their identities, claiming that it was just a logistics company.

In fact, as early as May this year, a small number of sellers started small-scale rights protection activities. By the beginning of July, only a small number of sellers participated in direct negotiations with Temu. However, as related videos continued to spread on social media, more and more sellers joined the rights protection team.

It is understood that on July 29, hundreds of sellers gathered in the office area of ​​Temu’s headquarters to collectively denounce the platform’s harsh penalty policy.

What is different about this rights protection is that these sellers are ready for a protracted war. They said they have prepared toiletries and are ready to live in the office area of ​​Temu’s headquarters. They will leave when Temu releases the funds.

According to the data provided by the sellers on site, the amount of post-sale fines and post-sale reserves calculated was about 138 million yuan, involving 407 merchants. Since most of these merchants are relatively small, it is really difficult for them to bear the huge fines imposed by Temu.

On the evening of July 30, Pinduoduo exclusively responded to a domestic media outlet, saying: "The platform will not earn money from fines for merchants violating regulations. If fines are imposed, they will be compensated to consumers."

An insider of Pinduoduo revealed in an interview with the media that there were actually only a dozen "troublemakers" in this so-called "rights protection" incident, and they were mainly concentrated in the clothing category. Many other people at the scene were "invited" by these merchants. These merchants hope to digest inventory problems through cross-border e-commerce. When there are problems such as false shipments, size discrepancies, and forged quality inspection labels, the platform protects the rights of consumers by deducting consumption security deposits.

A number of Temu sellers have withdrawn from the store

Some time ago, Temu launched a new function. Currently, both full and semi-hosting support merchants to close their stores on their own.

Since the new function was launched, it has aroused heated discussions among many sellers. Many sellers have expressed that this function is well updated. Before this, some sellers had encountered the situation of "no way to withdraw from the store".

There were also a lot of news about Temu sellers claiming to withdraw from the store on social media , and many sellers said that they had successfully withdrawn from the store and successfully received the deposit.

According to one of the sellers interviewed, he believed that the rights protection incident some time ago may have indirectly promoted the withdrawal process. His previous application for withdrawal had been stuck for a long time, but it was quickly approved after that incident, and he is currently waiting for withdrawal.

Another seller said that he chose to quit the store because of profit issues. It is understood that this seller entered Temu around October last year and did full hosting. At that time, after making several products, he finally came up with a hit product. Unexpectedly, Temu asked him to reduce the price at this time, resulting in no profit margin at all.

Judging from the feedback from these sellers, their final decision to close the store was actually a helpless choice. If they could make money, who would want to give up such an opportunity?

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