More than a third of European small and medium-sized enterprises selling on Temu have entered new international markets since joining the platform, according to a survey conducted by the company. The finding, based on responses from 152 small businesses across six European countries, offers a rare glimpse into how the Chinese-founded marketplace is reshaping cross-border commerce for smaller merchants. Fifty percent of those surveyed said they have added production capacity, hired additional staff, or both as a direct result of their participation on the platform.
The survey, fielded in June and July of this year, sampled sellers from Germany, France, Spain, Italy, Poland, and the United Kingdom. All respondents were active merchants on Temu. The data suggests that for many European SMEs, Temu is functioning not merely as an additional sales channel but as a genuine engine for international expansion and operational growth.
Temu’s European Trajectory: From Launch to Local Seller Onboarding
Temu, the fast-growing online marketplace owned by PDD Holdings, first launched in Europe in 2023. The company established its European headquarters in Dublin, Ireland, positioning itself for regulatory compliance and operational stability within the region. A year after its consumer launch, Temu opened its platform to European sellers, enabling local businesses to list products alongside the vast inventory of Chinese manufacturers that had initially defined the marketplace.
Today, Temu operates in more than 90 markets globally, including all member states of the European Union. Businesses from more than 35 countries can join the platform as sellers. This rapid expansion has made Temu one of the most visible — and debated — ecommerce platforms in Europe, drawing attention from regulators, competitors, and trade associations alike.
The decision to onboard European sellers marked a strategic pivot for the company. Initially, Temu’s model relied heavily on Chinese suppliers shipping directly to consumers worldwide, a structure that kept prices ultra-low but also drew scrutiny over shipping times, customs compliance, and product safety standards. By integrating local European sellers, Temu gains a more diversified supply chain, faster delivery capabilities for certain product categories, and a stronger narrative of local economic contribution.
One in Three European SMEs Expands Internationally on Temu: The Data in Context
The headline figure — 34 percent of European SMEs on Temu expand internationally — requires careful interpretation. For a small business based in, say, Poland or Italy, reaching customers in other European markets has historically involved significant logistical and financial hurdles: cross-border shipping contracts, VAT registration in multiple countries, language barriers, and the cost of marketing in unfamiliar territories. Temu, by centralizing many of these functions, effectively lowers the barrier to entry for cross-border selling.
The survey also found that 75 percent of respondents consider Temu an important additional sales channel or their primary sales channel. This suggests that for the majority of these merchants, the platform is not an experimental sideline but a core component of their commercial strategy. Notably, 43 percent of respondents had been operating their businesses for more than a decade before joining Temu, indicating that the platform is attracting not only digital-native startups but also established companies with existing infrastructure and customer bases.
This latter point is significant. It challenges the assumption that Temu appeals primarily to novice entrepreneurs or businesses with limited alternatives. Instead, the data points to a more complex picture: experienced merchants are choosing Temu alongside — or in some cases over — more established channels like Amazon, eBay, or their own direct-to-consumer websites.
Operational Impact: Half of Sellers Scale Production and Hiring
Fifty percent of surveyed sellers reported that they have added production capacity, hired additional staff, or both since joining Temu. This figure is a strong indicator of real economic impact, not merely channel shifting. When a small business increases production capacity, it typically signals sustained demand that justifies capital investment. Hiring additional staff suggests that the business is generating enough revenue to support a larger payroll, which in turn contributes to local employment.
For European policymakers concerned about the health of the SME sector — which accounts for the vast majority of businesses and employment across the EU — these numbers are noteworthy. They suggest that platform-based commerce, when structured effectively, can serve as a catalyst for tangible business growth. However, the survey was conducted by Temu itself, and the sample size of 152 businesses is relatively small. Independent verification of these claims would strengthen the case, but the directional signal is clear: at least a subset of European SMEs is experiencing meaningful expansion through the platform.
What Sellers Value: Platform Usability, Cost Structure, and Support
The survey also examined what aspects of the Temu platform sellers find most valuable. Thirty-eight percent of respondents cited the ease of use of the seller platform as a key benefit. This aligns with broader industry trends: as ecommerce becomes more complex, merchants increasingly gravitate toward platforms that simplify listing, inventory management, order fulfillment, and customer service.
Thirty-five percent of sellers said they find Temu’s cost structure fair. This is a particularly sensitive metric, given that marketplace fees and commission structures are a frequent source of tension between platforms and merchants. Temu’s model, which historically involved low upfront costs for sellers in exchange for a more hands-on role in pricing and logistics, appears to resonate with a meaningful portion of its European merchant base.
Perhaps most striking is the finding that 65 percent of sellers consider Temu’s dedicated support valuable. In the world of online marketplaces, seller support is often a pain point. Automated responses, slow resolution times, and language barriers can frustrate merchants. Temu’s relatively high satisfaction score on this front suggests that the company has invested in responsive support infrastructure, at least for its European sellers.
Challenges Remain: Complexity, Cost, and Support as Recurring Themes
Despite the positive survey results, Temu acknowledges that sellers face real challenges. The company has been in contact with ecommerce associations, industry bodies, and other stakeholders across Europe to better understand these pain points. According to Temu, sellers frequently name three recurring issues: complexity, cost, and support.
Complexity refers to the administrative and operational burden of selling across multiple markets. Even with a platform that simplifies cross-border commerce, sellers must still navigate product compliance regulations, labeling requirements, tax obligations, and returns management in different countries. Temu’s efforts to streamline these processes are ongoing, but the underlying regulatory diversity of the EU remains a structural challenge for any marketplace.
Cost encompasses not only platform fees but also shipping, warehousing, marketing, and customer acquisition expenses. While Temu’s cost structure is perceived as fair by a third of respondents, the remaining two-thirds either have neutral or negative views, indicating room for improvement. The company’s ability to balance affordability for sellers with sustainable platform economics will be crucial to its long-term appeal.
Support, while rated highly by the majority, is still a concern for a significant minority. As Temu scales its European seller base, maintaining high-quality, multilingual support will become increasingly challenging. The company’s outreach to ecommerce associations suggests a proactive approach, but execution will determine whether seller satisfaction remains high.
How Does Temu’s Model Differ from Other Marketplaces for European SMEs?
For English-speaking readers familiar with Amazon, eBay, or Etsy, Temu’s value proposition for sellers may require some explanation. Unlike Amazon, which charges referral fees, monthly subscription fees, and often requires sellers to use Fulfillment by Amazon (FBA) for Prime eligibility, Temu has historically operated with a lower fee structure and a more centralized approach to pricing and logistics. Sellers on Temu typically list their products, and the platform handles much of the pricing, marketing, and customer-facing logistics.
This model reduces the operational burden on sellers but also limits their control over pricing and customer relationships. For some merchants, this trade-off is acceptable, especially if it unlocks access to new markets without the upfront investment in cross-border infrastructure. For others, the loss of direct customer contact and brand control is a significant drawback.
Temu’s rapid growth in Europe has also been fueled by aggressive marketing, including discounts, promotions, and referral programs that drive traffic to the platform. For sellers, this means potential exposure to a large customer base — but also competition from similarly positioned merchants, including the Chinese suppliers that remain a core part of Temu’s inventory.
Implications for European Cross-Border Ecommerce
The survey results arrive at a time when cross-border ecommerce in Europe is both growing and evolving. According to industry data, cross-border online sales in the EU have been expanding steadily, driven by consumer demand for variety and competitive pricing, as well as by platforms that lower the barriers to international selling. Temu’s entry into this space has accelerated the trend, but it has also raised questions about market concentration, data privacy, and the treatment of workers in global supply chains.
For European SMEs, the ability to sell across borders without establishing a physical presence in each market is a significant opportunity. Platforms like Temu, Amazon, and others provide the infrastructure, but each comes with its own set of rules, costs, and strategic trade-offs. The fact that 34 percent of surveyed sellers have expanded internationally on Temu suggests that the platform is fulfilling its promise of market access, at least for this cohort.
However, the long-term sustainability of this model depends on several factors: the evolution of EU regulations on platform accountability and digital services, the competitive response from other marketplaces, and the ability of Temu to maintain seller trust and satisfaction as it scales. The Digital Services Act (DSA) and other regulatory frameworks in Europe impose obligations on large platforms regarding transparency, risk management, and consumer protection. Temu, as a designated very large online platform, must comply with these rules, which could affect its operational model and cost structure over time.
What the Temu Spokesperson Said: Growth, Jobs, and Community
A spokesperson for Temu framed the survey findings in terms of untapped potential. “The survey findings underscore the immense potential of Europe’s small businesses and aspiring entrepreneurs to grow if there were simpler, more affordable ways to reach new customers,” the spokesperson said. “We look forward to continuing our work in helping sellers grow at home and abroad and create jobs within their communities.”
The language is aspirational, but it also reflects a strategic imperative. For Temu, demonstrating tangible benefits to local sellers is important for public perception, regulatory relationships, and long-term platform viability. The company’s willingness to commission and publish a survey of its own sellers — and to share results that include both positive metrics and acknowledged challenges — suggests a degree of confidence in its narrative.
Whether that narrative holds up under independent scrutiny remains to be seen. The survey sample of 152 businesses is small, and the self-selected nature of respondents (all were active sellers on Temu) introduces potential bias. Sellers who have had negative experiences may have left the platform, making the survey pool more favorable than the broader population of merchants who have tried Temu. Nevertheless, the data provides a useful snapshot of a segment of European SMEs that are actively using the platform and reporting measurable outcomes.
Practical Considerations for European SMEs Evaluating Temu
For small business owners considering whether to join Temu, the survey offers several actionable insights. First, the platform appears to be particularly effective for businesses that are already established and looking to expand into new geographic markets. The finding that 43 percent of sellers had been in business for over a decade before joining Temu suggests that the platform is not exclusively for startups or digital newcomers.
Second, the operational impact — 50 percent of sellers adding capacity or hiring — indicates that Temu can drive real growth, not just incremental sales. However, this likely depends on the product category, pricing strategy, and the seller’s ability to manage increased demand. Businesses should have a clear plan for scaling production or fulfillment before committing significant inventory to the platform.
Third, the value that sellers place on ease of use, fair cost structure, and support suggests that Temu has invested in these areas. Businesses that prioritize simplicity and low overhead may find the platform attractive. Those that require full control over pricing, branding, and customer relationships may prefer alternative channels.
Fourth, the challenges of complexity, cost, and support are real and ongoing. Sellers should enter with realistic expectations and a willingness to navigate the evolving regulatory and operational landscape. Engaging with ecommerce associations and industry groups, as Temu itself is doing, can help sellers stay informed and advocate for their interests.
Finally, the cross-border dimension is central to Temu’s value proposition. For businesses that have not previously sold internationally, the platform offers a relatively low-risk entry point. For those already active in cross-border trade, Temu may represent an additional channel with distinct advantages and limitations.
The European ecommerce landscape is becoming more competitive and more integrated. Platforms like Temu are reshaping the rules of the game, offering both opportunities and challenges for small and medium-sized enterprises. The businesses that succeed will be those that understand the platform’s mechanics, align their capabilities with its requirements, and maintain the flexibility to adapt as the market evolves. The survey data from Temu provides a valuable, if partial, window into how that process is unfolding for a small but significant group of European sellers.
