Temu’s latest global playbook is “localization under tighter compliance + forward-deployed logistics.” As U.S./EU customs and low-value parcel rules tighten, Temu is scaling local warehouses and in-region fulfillment (especially in Europe) to reduce the risk of China-direct shipping.

Impact on China-based merchants: fulfillment shifts toward overseas stock/local-ship or hybrid, raising inventory & cash-flow pressure; compliance costs (tariffs, declarations, product/IP controls) climb and squeeze low-price margins; localization expectations (standards, after-sales, returns) increase—making supply-chain stability and consistent quality the key to sustained volume.