Only three years ago, Temu, the E-Commerce Marketplace owned by China-based PDD Holdings, represented only 1% of the cross-border e-commerce market. Speed up to the final numbers for 2025, and Temu is sharing the first position with Amazon when it comes to the volume of cross-border e-commerce sales.
These numbers are supported by a detailed survey conducted by International Post Corp, a worldwide postal services provider. Will Temu’s skyrocketing growth remain on the same level for 2026?
It remains to be seen, primarily because of the abolition of the de-minimis threshold in the US, the imposition of handling fees in different EU countries, and the soon-to-be-introduced fixed-parcel fee – a customs levy to be introduced by the EU customs authorities for all low-value imports outside the EU.
Temu, like Shein and other Asian-based e-commerce marketplaces, has experienced remarkable growth over the past few years, despite limited regulatory oversight in many markets.
The business models of these e-marketplaces leveraged the de minimis threshold profoundly; customs relief procedures, fast clearance, low prices, and fast availability made these online vendors a top choice for millions of shoppers.
The climate is changing as more major e-commerce markets transition and are directly impacted by regulatory changes. Marketplaces and third-party vendors will need to adjust their VAT compliance frameworks, possibly changing the logistics framework, pricing strategy, and, without hesitation, look for tax advisors, as tax authorities are becoming increasingly digital.
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