E-commerce platform Temu has introduced a Just-In-Time (JIT) pre-sale model, promising to alleviate sellers' inventory pressures while imposing strict penalties for non-compliance. The move has sparked debate about whether this represents progress or added challenges for merchants.
Under the new system, sellers no longer need to pre-stock goods in Temu's Guangdong warehouses before listing products. Instead, after receiving orders, merchants must ship items within 24 hours using SF Express's expedited service to Temu's Zhaoqing warehouse, covering shipping costs themselves to ensure next-day delivery. Participating stores are required to deposit 5,000 yuan as collateral.
While Temu positions JIT as inventory relief, its penalty framework creates significant pressure. Late shipments incur heavy fines: exceeding 24 hours triggers a penalty equal to the product's value, while delays beyond 48 hours warrant five times the product value. Similar fivefold penalties apply for quality issues leading to buyer rejection or stock shortages causing fulfillment failures.
The model is currently being piloted in Guangdong and neighboring provinces. Previously, Temu required rigorous product vetting and warehouse stocking before listings went live. Insufficient inventory automatically deactivated listings, with platform-controlled pricing approvals creating lengthy lead times between listing and display. New products face initial stocking caps of 30 units, with unrestricted subsequent batches contingent on quality performance.
The September-October COVID outbreaks in Shenzhen and Guangzhou disrupted factories, causing widespread seller stockouts that affected both merchants and Temu. While positioned as inventory relief, sellers report the JIT model merely shifts rather than reduces burdens, requiring constant monitoring of active listings and logistics efficiency due to "stockout fines" and "overstock return" clauses.
From Temu's perspective, JIT addresses peak season warehouse congestion, reducing product queuing times and operational pressures. The timing—ahead of Black Friday/Cyber Monday promotions—suggests preparation for seasonal demand spikes. Industry observers note this forms part of Temu's broader strategy to elevate seller quality thresholds, with packaging standards and pricing benchmarks mirroring (and sometimes exceeding) Alibaba's 1688 platform requirements.
The JIT model will likely accelerate listing speeds and platform efficiency while forcing sellers to refine inventory and logistics management. For established merchants with robust operations, this may present opportunities, but smaller sellers could face heightened challenges meeting the stringent requirements.
Temu's JIT pre-sale system ultimately serves as both operational optimization tool and capability benchmark. Sellers must carefully evaluate their capacity to navigate this dual-purpose mechanism for sustainable platform success.