Temu expands European push with local sellers and warehouses

Temu is expanding its European operations by recruiting local sellers and setting up warehouses across Europe, SRF consumer programme Kassensturz reported. The Chinese online retailer says the strategy will bring it closer to customers, but products marked “Local” do not necessarily come from a Swiss seller.

Since its launch in 2022, Temu has grown rapidly. In Switzerland, it is already the country’s fourth-largest online retailer by sales, overtaking Amazon. Most orders are still shipped directly from China, with delivery times of between six and 20 days.

Temu began its “Local to Local” programme last September, allowing Swiss retailers to sell their products directly through the platform. The Swiss SME association SKV has announced a partnership with Temu intended to make it easier for Swiss small and medium-sized businesses to access the platform.

Swiss retailer Daniel Lauper is among those already selling household and leisure products on Temu. He said the platform regularly sends local sellers proposed price cuts of up to 40 percent. If he rejects the proposals, Temu reduces the visibility of his products, he told Kassensturz.

Temu also imposes stricter delivery requirements than Swiss platforms, Lauper said. Sellers must dispatch orders within one or two days or face a penalty of five Swiss francs per parcel. “It is quite rigorous. We do not know anything like this from other platforms,” he said.

Temu labels products held in its European warehouses with a “Local” symbol. However, customers cannot immediately tell whether an item comes from a Swiss retailer or from a warehouse operated by a Chinese seller.

Bernhard Egger, managing director of Handelsverband.swiss, warned that this distinction can be important in a dispute. Customers do not conclude a contract with Temu when they place an order, but with the producer behind the product.

If the seller is Swiss, product safety and liability are governed by Swiss law. If the seller is Chinese, Chinese law applies and the products may not meet Swiss safety standards, Egger said. Temu’s terms and conditions largely exclude the company from liability, he added, arguing that the system can circumvent Swiss legislation.

Temu did not answer Kassensturz’s specific critical questions and instead provided only a general explanation of its business model.