The cross-border e-commerce platform TEMU has recently updated its "Deposit Rules," significantly increasing security deposits for certain product categories, with the highest standard now reaching 100,000 RMB. This change applies to both fully managed and semi-managed business models. The move has undoubtedly created substantial challenges for sellers, particularly small and medium-sized businesses, who now face intensified cash flow pressures and compliance requirements.
TEMU's New Deposit Policy: Comprehensive Tightening with Differentiated Management
The core of TEMU's new deposit policy involves a comprehensive tightening of both basic store deposits and special store deposits. Sellers are now required to pay corresponding amounts based on their operating regions, product categories, and risk levels.
Basic Deposits: From Ambiguous Standards to Differentiated Pricing
The platform has abandoned its previous vague deposit standards in favor of a rigid enforcement policy where "the amount displayed in the seller center shall prevail." This affects all sellers, new and existing, with deposit amounts now varying by geographic region and product risk categories.
- Operating Regions: Different deposit amounts are set for markets like Europe, North America, Southeast Asia, and Latin America, reflecting varying regulatory requirements.
- Product Categories: Products are classified into tiers such as standard category and general risk category, with higher-risk items facing higher deposit thresholds.
Special Store Deposits: Significant Increases for Key Categories
Sellers offering specific product types must pay additional special store deposits, with amounts varying by category and market. Three categories have seen particularly notable adjustments:
- Children's Toys: In 39 countries including European and North American markets, deposits have been standardized at 10,000 RMB, reflecting stricter toy safety regulations.
- Power Banks/Batteries: Deposits have surged to 30,000 RMB, demonstrating the platform's heightened focus on battery safety.
- Memory Cards: Now classified as a priority category with deposits set at 10,000 RMB, likely due to counterfeit product proliferation.
Dynamic Penalty Mechanism: Immediate Consequences for Violations
The platform has implemented a "violation equals penalty" system where deposits are directly tied to risk incidents. If products or stores receive regulatory warnings or recall notices, sellers must pay additional special deposits of 10,000 RMB or $15,000 USD.
Violations of platform rules or relevant regulations will increase deposit requirements from 10,000 RMB to 100,000 RMB depending on severity, with account freezes for serious cases. When both basic and special deposits apply, the higher standard will be enforced.
Eliminating "Exemption Advantages": Existing Sellers Must Comply
The new rules eliminate previous exemptions for early platform adopters who benefited from lower or zero deposit requirements during TEMU's expansion phase. These sellers must now pay full deposits within specified timeframes or face store functionality restrictions.
Mandatory Implementation: No Room for Negotiation
The policy is being enforced strictly, with sellers reporting that they must accept the new terms to access their store dashboards, leaving little room for negotiation or transition periods.
Underlying Reasons: Compliance Pressures and Ecosystem Optimization
While the deposit increases may seem sudden to sellers, they represent a strategic shift for TEMU driven by two key factors:
- Addressing International Regulatory Pressure: With stricter regulations like the EU's revised Toy Safety Directive and EPR systems, TEMU is using financial requirements to improve product quality control and consumer trust.
- Improving Platform Quality: The changes aim to filter out non-compliant sellers and transition from low-price competition to quality-focused operations, aligning with broader industry trends.
Seller Strategies: Compliance First, Precision Operations
For serious sellers, this presents an opportunity to operate in a more regulated environment. Recommended strategies include:
- Completing all required international compliance certifications
- Developing financial and compliance contingency plans
- Streamlining product offerings to focus on competitive strengths
- Maintaining open communication with the platform
Industry Transformation: Compliance and Quality as Core Competencies
TEMU's deposit changes mark a turning point where "compliance first and precision operations" become essential for survival. Sellers must adapt through compliance checks, cost control, and operational optimization to build new competitive advantages.
This represents both a test of seller capabilities and a milestone in the cross-border e-commerce industry's transition from price wars to quality-driven growth. Only sellers who align with compliance requirements and focus on product value will thrive in this new environment.
Analyst Perspective: Risk Management Through Data
From a data analysis standpoint, TEMU's new deposit system represents enhanced risk control through differentiated standards by region and category. The dynamic penalty mechanism encourages compliance while potentially filtering out higher-risk sellers.
However, the policy may reduce platform diversity by pressuring smaller sellers. TEMU will need to balance strict standards with support mechanisms to maintain a healthy ecosystem during this transition toward more regulated, quality-focused operations.