Industry News

This year, Temu—once a rapidly rising star—has entered a phase of "staff reshuffling + structural adjustments", likely in response to U.S. tariff changes as a self-preservation move.

Recently, many sellers have reported losing contact with their Temu buyers or encountering frequent buyer changes. Investigations reveal that Temu is undergoing a major internal 

restructuring, with staff being reassigned or leaving. This "reshuffling + adjustment" phase has led to buyer instability or even disappearance, marking a critical transition period.

Some sellers noted that many Temu buyers have resigned recently due to the intense workload, resulting in high turnover rates.

Reports indicate that Temu is currently focusing on two key tasks: reassigning internal personnel and pushing for full-trust (fully managed) models to boost performance.

None of these changes are accidental.

User Decline & Ad Strategy Shift

According to Sensor Tower, Temu’s monthly active users (MAU) in the U.S. plummeted 54% from March to mid-July, dropping from a peak of 80 million to just 37 million. The

 primary reason? Temu paused its U.S. ad campaigns during this period.

Due to the impact of U.S. tariffs, Temu slashed its ad spending starting in April, causing its ranking on the U.S. Apple App Store’s shopping category to plunge to 69th place.

 However, after resuming ad investments, its active ad presence on Meta and Google surged. SimilarWeb data shows that in July, Temu’s website traffic jumped 97.3%

 month-over-month, while app downloads soared 75%, propelling it back into the Top 3 in shopping app downloads.

Yet, whether Temu can sustain growth in the U.S. remains uncertain.

Price Restrictions & Business Model Challenges

Reports suggest that U.S. companies have warned Temu not to undercut Amazon’s branded product prices. This development has hurt Temu, which is already struggling to 

reform its business model following the end of the de minimis tariff exemption on Chinese goods.

If true, Temu’s low-price strategy in the U.S. could be blocked, giving Amazon sellers—previously undercut by Temu—some breathing room. What one loses, another

 gains—this is an eternal truth.

Global Expansion Continues

Despite U.S. setbacks, Temu’s global expansion hasn’t slowed.

The company is doubling down on Europe’s mature markets, Southeast Asia’s blue oceans, and Latin America’s emerging economies. In Q2 2024, Temu’s ad spending

 in Australia surged 110% quarter-over-quarter, peaking at 4 million AUD per month.

The results are striking:

    EU MAUs nearly doubled year-over-year, with French consumer spending up 100%.

    In Latin America, Temu’s traffic in Colombia has already surpassed Amazon’s.

Short-Term Outlook

While the U.S. market remains risky and competitive, other regions offer opportunities—such as Canada, which could serve as a viable alternative for U.S.-based sellers.