Does temu ship from china

Does temu ship from china? Shop confidently with Temu, your reliable source for products shipped from China, offering competitive prices and fast delivery.

This article will explain temu’s shipping process in detail, and you will understand the entire process of your order from start to finish.

In just over a year, Pinduoduo’s cross-border e-commerce platform Temu has deployed in 47 countries and regions around the world, with an annual order volume of 61 billion.

In September 2022, Pinduoduo officially launched Temu, with the first stop being the United States. The current consumer market environment provides Temu with the soil for rapid development. After going online, Temu hit a super combo: on the one hand, Temu copied Pinduoduo’s mature experience in the past – ultra-low price subsidies; on the other hand, it carried out all-round advertising.

Within two or three months, Temu directly surpassed Amazon, SHEIN, and Walmart to take the top spot in the download list of all apps in the U.S. AppStore, and has been in the top three in the download list ever since.

After establishing a good presence in the United States and Canada in the North American market, Temu has begun to expand into other overseas markets, such as Australia and New Zealand; the United Kingdom, France, Germany, Italy, Spain, the Netherlands, Finland and other European countries; as well as South America, Africa, Many countries and regions such as the Middle East and Asia.

Temu has been able to succeed quickly, and its unique fully managed model is one of the key factors for success. At present, the fully managed model has become a craze in the field of global e-commerce platforms. However, if Temu wants to continue to grow, it must be inseparable from the underlying support of complex logistics supply chain management capabilities.

Does temu ship from china

What is Temu’s logistics supply chain model?

Temu adopts a fully managed model, that is, sellers supply goods and the platform sells goods.

Sellers only need to produce the goods, upload product photos and size information in the background, and deliver the goods to the domestic warehouse in China designated by Temu. Temu is responsible for subsequent store operations, product sales, pricing, traffic diversion, warehousing, cross-border logistics, after-sales and other operational solutions.

It is worth noting that among all logistics costs, only the domestic freight in China is shared between the merchant and Temu, and other logistics costs are borne by Temu.

Under the traditional e-commerce model, the operating logic of sellers’ products going overseas through the platform is factory-retail seller-platform-buyer.

The operating logic of Temu’s fully managed model is factory-platform-buyer.

Temu merchant cooperation model

Merchants on the Temu platform mainly have two modes: VMI mode (Vendor Managed Inventory) and JIT mode (Just In Time).

The VMI model represents the stocking model of “prepare goods first, then put them on the shelves for sale”. The seller needs to apply to Temu for stocking first. After obtaining the warehouse, the seller will send the goods to Temu’s warehouse, and Temu will be responsible for the warehousing; then Temu will process the delivery according to the order, and the platform merchants only need to bear half of the delivery freight.

The advantage of the VMI model is that sellers have less risk and will not be fined due to logistics timeliness issues.

At the same time, the disadvantages of VMI mode are also obvious. Since the goods are stored in the warehouse, the seller will have a certain risk of overstocking. Although there are no storage fees in the warehouse, if the warehouse does not prepare the goods in time, the sales link may face the risk of being removed from the shelves.

The JIT model represents the pre-sale model of “order first, ship later”. Sellers do not need to prepare goods in Temu’s warehouse. As long as they pass the review, they can pre-sell goods on the platform. Under this model, sellers need to deliver the goods to Temu’s domestic warehouse in China. Temu’s warehouses in China are currently in Guangdong Province.

The advantage of the JIT model is that there is no need to prepare ready goods and there is no inventory pressure. However, the JIT model has higher timeliness requirements.

The merchant can choose to send it to the warehouse in Guangdong. If it is a supplier in Guangdong, it needs to be sent by express; but the seller must ship the product within 24 hours after the product is sold, and the goods must arrive within 48 hours. warehouse. This means that merchants using the JIT model will be subject to certain fines if their shipments do not meet the platform’s delivery time requirements.

In particular, Temu is currently expanding into new regional sites, with strong website traffic growth and strong demand. Merchants on the Temu platform need to maintain a high frequency of new products. Therefore, the small order and quick response method can quickly screen the products needed in the market and then carry out mass production.

However, for merchants, VMI mode and JIT mode are not an alternative, they can be chosen in a targeted manner. For example, a store can choose the VMI mode if a portion of the goods are in stock, and the JIT mode can be used if the goods can be shipped in a timely manner.

For many sellers, Temu’s fully managed model has greatly lowered the threshold for exporting products overseas. Since the fully managed model provides a one-stop solution, merchants do not need to maintain and manage multiple platforms themselves, which greatly reduces operating costs and time costs; at the same time, merchants can also better expand order channels.

But on the other hand, the fully managed model also raises the threshold for e-commerce sellers. Sellers must have a relatively long-term plan for the production and sales of products.

In fact, the fully managed model is more beneficial to sellers with sufficient supply and production capabilities. It is not friendly to small and medium-sized sellers who do not have their own supply chain.Because as the fully managed model becomes more and more mature, such small and medium-sized sellers not only face the risk of being lowered by their peers, but also the factories that directly enter the platform through the fully managed model have a lower price advantage. In this case, small and medium-sized sellers may even be eliminated from the market.

In general, under the fully managed model, the competition between platform sellers is essentially a supply chain battle; therefore, there is no significance for the existence of small sellers in the entire value chain.

Temu’s warehousing business in China

Logistics is an important part of cross-border e-commerce business and an important foundation for completing business operations.

Currently, Temu adopts three-stage logistics, namely first-leg (domestic sellers arrive at the warehouse), international trunk routes, and overseas final-leg distribution. The logistics transportation process mainly includes front-end collection, transportation sorting, domestic customs affairs, trunk transportation, foreign customs declaration, foreign customs clearance, overseas warehousing, last-mile distribution and other links.

Among them, Temu’s domestic first-leg transportation adopts a unified warehousing and distribution model: merchants deliver goods in advance to Temu’s warehouses across Guangdong, and then the platform uniformly airlifts them overseas.

Currently, 90% of the domestic incoming goods of the three cross-border e-commerce platforms Temu, SHEIN, and TikTok Shop are transported by domestic express delivery.

As for the international trunk line and overseas last-mile delivery segments, logistics service providers integrate goods receipt, air trunk lines, customs clearance, and last-mile distribution to provide door-to-door services.

The main logistics service providers currently used by Temu are Jitu Express and Yuntu.

Although Jitu and Yuntu’s services include last-mile delivery, they do not build networks in the United States. Instead, they purchase services from local logistics service providers such as UPS, FedEx, and USPS. Among them, the last-mile delivery service provider that Jitu cooperates with is mainly USPS, and Yuntu mainly cooperates with UPS.

In just over a year, Temu has grown from scratch to an international e-commerce giant. While the number of users and orders continues to rise, Temu’s fulfillment logistics has also begun to catch up. Building a complete logistics supply chain network requires more than just one step. The merit of the day. For Temu, logistics is currently an obvious shortcoming. However, whether it is to further develop global sites, reduce costs, and gradually improve profitability, fulfillment logistics is a link that cannot be bypassed. Temu has clearly recognized this. , and has acted quickly, but it still needs more time to plan and layout its global logistics network.

If you are an international seller, you can contact XCJD Freight Forwarder for consultation on how to settle in temu or need to purchase goods in China and require international logistics and transportation.