Temu, the cross-border e-commerce platform owned by Pinduoduo, has made remarkable strides since entering the U.S. market. Its "low-price storm" strategy quickly captivated American consumers, propelling it to the top of Google Play's shopping app downloads and briefly surpassing Amazon on Apple's App Store free shopping apps chart. The platform has also achieved notable success in African markets. Now, Temu is accelerating its global expansion with sights set on Canada and Spain.
Canada and Spain: Temu's Next Battlegrounds?
According to informed sources, Temu is actively preparing to launch operations in Canada and Spain. The Canadian site is in advanced preparation stages, with the Spanish platform to follow shortly. These strategic market selections appear carefully considered.
Canada: Significant E-Commerce Potential Amid Fierce Competition
Canada's e-commerce market shows robust growth potential. eMarketer data projects 2022 Canadian e-commerce sales at 109.28 billion CAD (approximately $80 billion), representing 15% year-over-year growth. This expansion trajectory is expected to continue in coming years.
However, this promising market comes with intense competition. Amazon currently dominates Canadian e-commerce, with Walmart and eBay aggressively competing for market share. Temu's entry will undoubtedly intensify this rivalry.
For Temu, product selection in Canada presents relatively low barriers. Top-selling U.S. items typically perform well in the Canadian market, enabling Temu to extend its existing operations northward with minimal adaptation. This operational efficiency likely influenced Temu's Canadian market selection.
Current Canadian market trends show consumer electronics as the largest category, followed by apparel and accessories. Pandemic-driven demand has accelerated growth in home furnishings, personal care, and beauty products. Notably, 83% of Canadian consumers purchase internationally, with U.S. and Chinese goods being most popular—positioning Temu advantageously with its Chinese supply chain.
Spain: Europe's Rising E-Commerce Star Presents Dual Challenges
Spain's rapidly growing digital marketplace ranks as Europe's fourth-largest B2C e-commerce sector, trailing only Germany, the UK, and France. With 93% internet penetration and 68% of users being online shoppers, Spain offers substantial opportunity.
The Spanish e-commerce landscape features multiple established players including Amazon, eBay, AliExpress, and local platforms Milanuncios and Segundamano. For cross-border purchases, Spanish consumers predominantly choose Amazon, with the UK, China, the U.S., and Germany being primary sourcing countries.
Spain's core online shoppers are middle-aged and younger consumers with strong purchasing power, typically spending €100-€500 per transaction. Popular categories include electronics, apparel, outdoor gear, and home goods. While Temu's comprehensive catalog and discount pricing may appeal to Spanish consumers, the market's quality expectations and established competition present significant hurdles.
Temu U.S.: Introducing JIT Presale to Enhance Efficiency
While expanding globally, Temu continues refining its U.S. operations. Recently, it introduced a Just-In-Time (JIT) presale model to American sellers, aiming to streamline fulfillment processes.
Previously, Temu's inventory-heavy approach required merchandise to reach warehouses before listing, with products automatically delisted during stockouts. This system, while ensuring delivery speed, created bottlenecks during peak periods or supply chain disruptions.
The new JIT model allows sellers to ship products within 24 hours after receiving purchase orders, eliminating pre-stocking requirements. However, participants must use expedited shipping (currently limited to select Chinese regions) and maintain a 50,000 RMB deposit. Strict penalties apply for delayed shipments, including product delisting and financial penalties up to five times the item's value.
Temu's Future: Beyond Price Wars
Currently averaging $20-$25 per U.S. order—significantly below SHEIN's $75—Temu maintains rigorous seller and product standards despite its discount positioning. The platform's operational enhancements, including JIT implementation, demonstrate its focus on service quality improvement.
As Temu prepares for its first Black Friday promotion with aggressive discount campaigns, the e-commerce landscape grows increasingly competitive. While Temu's low-price strategy has driven initial success, long-term viability will depend on balancing affordability with product quality and customer experience—a challenge facing all discount-oriented marketplaces.
Temu's global ambitions face complex tests in developed markets. Its Canadian and Spanish expansions will reveal whether the platform can translate early momentum into sustainable international growth, or if established competitors will adapt to blunt its discount-driven advance.