Temu: Getting Started as a Seller – and Why High-Quality Products Have Little Chance
Temu is considered the new shopping sensation – low prices, huge selection, growing customer base. For many retailers, this seems like an opportunity. We also decided to try our luck on Temu – with the goal of selling our products there. However, the reality looks different than we expected.
User-Friendliness and Simple Product Management
Temu's user interface is extremely simple and clear, making it easy for sellers to get started. Adding products is quick and straightforward, allowing sellers to list their items on the platform without much effort. Temu offers a clear and structured interface that makes the sales process efficient and stress-free. It's important to note that sellers must ensure all compliance data is correctly stored to guarantee a smooth publication of their products. This step ensures that products comply with the platform's guidelines and can be sold without delays.
Important: To successfully sell on Temu, all compliance data must be confirmed and correctly stored. This is an important step to ensure that products comply with the platform's guidelines.
Order Process on Temu – Step by Step
- Product Listing
- Sellers log in to Temu's seller interface
- Products are uploaded, including: Product description, title, images; Category and attributes; All compliance data (e.g., safety certificates, warnings, material specifications)
Important: Without complete compliance data, the product cannot be published.
Price Approval
- Temu automatically analyzes market, competition, and category
- An "optimal" selling price is suggested. Important: Only if this price is accepted will the product be visible to buyers
- Higher prices are generally not accepted, and the product will not be listed
Orders
- As soon as a customer purchases the product, the order appears in the seller interface
- Sellers receive all details: item, quantity, delivery address, preferred shipping option
- Sellers must confirm the order within the specified processing time
Shipping
- The seller is responsible for shipping
- Shipping costs are borne by the seller – both for initial shipping and returns
- Products must be correctly packaged and shipped on time, otherwise negative reviews and visibility losses are likely
Returns
- Customers can return products
- Here too, the seller bears the costs if the product comes back
- Temu only credits the money once shipping has been correctly completed
Billing / Payout
- After completed delivery and return period, the revenue is posted to the seller account
- Temu deducts its fees (comparable to sales commissions)
- Payout is made to the seller's registered bank account
Pricing by Temu
Once a product is uploaded, Temu automatically analyzes the market, competition, and the respective category. The platform then suggests an "optimal" selling price – usually significantly lower than what would be realistic or economically sensible.
The reason is clear: Temu wants maximum competitiveness and visibility. This only works through price. Anyone who wants to appear in the main search or participate in promotions must accept this suggested price. In some cases, it's possible to negotiate with Temu – but that remains the exception.
Practical Example: Fire Bowls
Our selling price for high-quality fire bowls is €19.98. Temu suggests offering them for €11.76 – about 41% cheaper, without regard for production costs, quality, or shipping costs. Anyone who tries to set a higher price often cannot list the product on the platform, and it won't be displayed to customers.
After attempting to set an alternative price, this was not accepted by the platform. The product can only be offered at this suggested price if it is to be sold on the platform at all.
Calculation
Sellers on Temu must bear shipping costs as well as return costs. For the calculation, this means: The margin must be carefully reconsidered. Temu is particularly suitable for products where a high discount margin (typically 40% or more) can be factored in. High-quality "Made-in-Germany" products have little chance of being economically successful here.
Marketing on Temu
Temu offers marketing campaigns such as deals or special placements in the app. Inclusion in these campaigns is subject to review:
- Price: Only heavily discounted products are considered for marketing campaigns
- Compliance: All products must be fully and correctly stored with the required data
- Availability: Products must be in stock and ready to ship.
If these requirements are met, Temu checks whether the product is suitable for campaigns such as temporary offers or highlighted listings in the app. Participation can significantly increase sales but is not guaranteed.
Requirements for Selling on Temu
Complete and correct compliance data
- All products must meet legal requirements
- This includes: Safety certificates, material specifications, warnings, age restrictions, or other legally required information
- Only if this data is completely stored can the product be published on the platform
Acceptance of the suggested price
- Temu automatically determines the selling price based on market, category, and competition
- Sellers must accept this price to be visible
- Products whose price is higher than the suggested one are often not listed and don't appear in search results
Coverage of shipping and return costs
- Sellers are obligated to cover shipping costs for the customer
- Returns must also be paid for by the seller if customers send items back
- These costs must already be considered in the calculation, as they strongly affect the profit margin
Inventory and shipping readiness
- Products must be in stock and immediately ready to ship
- Delays in shipping lead to poor visibility, negative reviews, and possibly restrictions in the seller account
Products with high discount margin (ideally ≥40%)
- Temu prefers heavily discounted products to attract customers with low prices
- Items without sufficient margin or with premium prices have little chance of visibility or marketing campaigns
- For sellers, this means: Calculations must be adjusted so that a minimal profit remains despite the discounts
Additional Challenges: Shipping and Return Costs
In addition to pricing, there are other important points that sellers on Temu must consider. For example, the seller bears the shipping costs for the product. Furthermore, return costs must also be covered, or the product remains in the customer's possession even if it is returned.
Comparison with Other Platforms
Compared to established platforms like Amazon or eBay, there are clear differences in pricing and quality strategies:
- Amazon: Here, sellers often have more control over their pricing. Premium products can be positioned through targeted branding, A+ Content, and reviews. Competition is strong, but there are enough buyers who consciously accept higher prices for quality.
- eBay: This platform offers flexibility with both fixed prices and auctions. High-quality products can be successful if they are specifically presented, especially with collectibles or niche products.
- Temu: In contrast, Temu is strongly price-driven. Visibility and ranking depend almost exclusively on the lowest price, making premium positioning significantly more difficult.
Anyone who wants to sell high-quality products will find significantly more room for pricing and brand building on platforms like Amazon or eBay. Temu, on the other hand, is better suited for cheap mass-market items or promotional goods.
Conclusion: Temu as a Platform for Low-Cost Products
Temu is particularly suitable for heavily discounted mass-market items or promotional goods. High-quality, brand-oriented products have little chance on Temu. The platform prefers products with high discount margins, which puts "Made-in-Germany" products at an economic disadvantage. Anyone who wants to sell on Temu must understand the pricing structure and conditions precisely and be prepared to adjust margins accordingly.
The decision to sell on Temu should be carefully considered – especially if the product follows a specific pricing structure or quality positioning. Temu offers an interesting opportunity, but it's important to understand the platform's peculiarities and adapt to them.
