Many countries are eyeing small packages, giving Temu a headache!

As a rising star in the cross-border e-commerce industry, Temu has been developing rapidly in the international market. It is this rapid development that has put pressure on many countries, causing them to start the "defense" mode.

According to foreign media reports, according to Gemius Turkey's analysis of Temu from July 12 to August 6, Temu's monthly active users in the Turkish market have reached 9.3 million, and its daily active users have reached 1.4 million. Coincidentally, Turkey's tariff amendment for small-value goods was also announced on the official website of the Government Gazette on August 6: the customs clearance limit for goods purchased by individuals from overseas e-commerce platforms was reduced from 150 euros to 30 euros .

Soon after, the South African Revenue Service ( Sars) also officially announced that it would make temporary tax adjustments to e-commerce platforms such as Temu and SHEIN from September 1, 2024. The new policy will impose an additional value-added tax on the current 20% unified tariff. Sars also plans to launch permanent tax adjustments for the cross-border e-commerce sector in November.

In addition, Brazil also announced at the beginning of the month that it would impose a 20% tax on all imported e-commerce packages below $50 ; for goods valued between $50.01 and $3,000, a 60% tax will be imposed, with a $20 fixed tax reduction. Although Temu was not named , it is inevitable that it will be affected as a cross-border e-commerce platform .

In Thailand, Temu has attracted the attention of the government as soon as it was launched . The Thai Prime Minister directly ordered a compliance investigation on Temu ; the government is also discussing the implementation of stricter import measures, including the imposition of value-added tax on imported goods below 1,500 baht .

In the United States, Temu's "originating station" , a congressman proposed a new draft: prohibiting the import of textiles and clothing and other goods into the United States through minimum rules . This policy directly affects the business of Temu and other platforms in the United States. At the same time, the voices in the United States demanding the reduction of the minimum tax-free threshold of $800 are also growing .

As countries continue to revise their policies on small packages, Temu's price advantage will be relatively weakened , thus affecting users' use of Temu. Taking the South African market as an example, some consumers have said on social media that if tariffs are added, Temu's prices are not much different from those of other platforms .

In addition to tariffs, Temu's site development was not smooth. Indonesia, as the largest e-commerce market in Southeast Asia, has always been Temu's goal. However, according to information disclosed by Indonesian officials, Temu's three registration applications in the country were not approved.

On the one hand, there are similar brands operating locally (namely Tokopedia, which is controlled by TikTok); on the other hand, Temu’s business model (M2C, supply chain directly facing customers) also conflicts with Indonesia’s Government Regulation No. 29 at the end of 2021. Indonesian officials are worried that if Temu is allowed to enter the country’s market, it will have a significant impact on the country.

In fact, whether it is Indonesia's "fear of Temu" or various countries adjusting their policies on small packages, it shows that the cross-border e-commerce industry is facing new opportunities and challenges. In this regard, relevant people suggest that sellers need to respond in a flexible way and actively seek new market opportunities to maintain their competitiveness and sustainable development.

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