This video gives an interesting background.
This adds context to our prior discussion of the impact of the Universal Postal Union on direct shipments from China:
Additionally, the new video noted that small shipments such as individual Temu/Shein orders of widgets or clothing pass duty/tariff-free whereas a US reseller who buys a pallet of widgets or clothes to resell on Amazon or eBay has to pay to import.
I donât know about Shein, but I would not trust them or Temu with a credit card.
Now as for Amazon, I have their credit card, but still there are problems with âdirect from Chinaâ via Amazon.
One instance the item of clothing would fit a doll. The seller said ship it back, but it would cost about half a C note to do that.
Amazon gave in and said throw it away and erased it from my card.
The seller is no longer on Amazon or at least not under that name.
Now as to the post, the bottom line is money. If there was a secure way to purchase things from or via Temu, I might try it. But some âseller / resellerâ in the US that buys bulk is gonna get hurt in their pocket as well as Amazonâs overhead.
Does this mean I have to use DHL? Iâm asking for my âfriendsâ, i.e. Amazon and eBay resellers
update:
It is impressive to me that TEMU can ship small orders across the pacific and maintain pricing power. I have never used TEMU nor been on their website so I just looked to get an example. You can buy two leather belts for 13 bucks ($7.50 each). Last weekend I just bought three belts at the outlet store at $50 per. An Origin belt mad in the USA costs $64. I bought one of these and it was an additional $9 shipping within the US.
I asked Grok.
Number two reminds me of my working days when we had products that a company in China was selling for lower than the materials cost.
Here is Grokâs answer:
When Temu ships from China, they leverage heavily subsidized international shipping rates. China Post, one of their common carriers, benefits from agreements under the Universal Postal Union (UPU), where terminal duesâthe fees countries charge each other for delivering international mailâare kept artificially low for developing nations like China. This means the cost to ship a small package from China to the U.S. can be as low as $2-$5, far less than the $9 for domestic U.S. shipping. Temu absorbs or negotiates even lower rates with logistics partners like J&T Express, sometimes losing money per shipment to gain market share.
Second, Temu exploits the U.S. de minimis exception, which allows packages valued under $800 to enter the country duty-free and with minimal customs processing. A $12 item (including shipping) easily falls under this threshold, avoiding tariffs or taxes that would otherwise increase costs. Domestic U.S. shippers donât get this breakâthey pay full freight costs plus any applicable taxesâso their baseline is higher.
Third, Temuâs pricing isnât always about profit per item. Theyâre willing to take a loss on individual sales to hook customers. Analysts estimate Temu loses $9-$30 per order, including shipping, discounts, and operational costs. This is subsidized by their parent company, PDD Holdings, which has deep pockets and a long-term strategy to dominate e-commerce. That $12 total might include a $3 item and $9 shipping, but Temu could be paying $10-$14 to ship it, eating the difference. The goal? Build a massive user base, then raise prices or shift to local warehouses later.
Finally, when Temu does ship from U.S. warehouses (increasingly common since 2024), they optimize for bulk and scale. They pre-stock high-demand items in places like California or Texas using third-party logistics (3PL) providers. Shipping a $12 item domestically for $9 is still tight, but Temu might bundle it into larger orders or negotiate rock-bottom rates with carriers like USPS, which offers discounted commercial pricing for high-volume shippers. They also push free shipping thresholds (e.g., $30 locally) to encourage bigger carts, spreading shipping costs across multiple items.
I am allergic to Grok â but that statement might be right. Of course, that is the classic monopolist approach â sell below cost today to drive competitors out of business, and then reap the benefits of high monopoly pricing tomorrow. This is part of what Standard Oil was accused of, all those years ago.
Temu has been fantastic. As you say, belts, shoes, clothingâŚyou can find almost anything you want, exactly what you want, for under $8. Delivery is very prompt or they give you a credit, and so far the quality of everything I ordered has been good.
Iâll miss Temu.
I used to think about this a lot. The winter coats I had back in the 70s werenât very warm. They were expensive, tailored ânâ padded wool garments, but you shivered. Then suddenly : Polartec! And cheap downfilled puffy jackets! K-mart, Walmart! I thought it was so great, everybody could afford to be warm! I remember thinking so what if this stuff is made in China?
