As profit margins continue to shrink, cross-border e-commerce sellers operating on Temu's U.S. platform face a significant and often overlooked expense: Transaction and Return Obligation (TRO) fees. This cost component has emerged as a critical factor affecting seller profitability since its implementation in 2024.
What Are TRO Fees?
TRO, an acronym for Transaction and Return Obligation, represents fees charged by Temu to cover operational costs associated with order processing, returns, exchanges, and post-sale dispute resolution. These fees directly impact sellers' bottom lines and compliance requirements.
Strategies for Cost Optimization
To maintain profitability, sellers must thoroughly understand TRO fee structures and implement targeted mitigation strategies:
- Product Quality Enhancement: Investing in superior product quality reduces return rates and subsequent TRO charges.
- Logistics Optimization: Streamlining shipping processes minimizes delivery-related disputes that trigger TRO fees.
- Customer Service Improvements: Comprehensive after-sales support prevents escalations to platform-mediated resolutions.
Additionally, proactive monitoring of platform policy changes enables timely operational adjustments that can further reduce TRO-related expenses.
The Path to Sustainable Operations
For cross-border sellers on Temu's U.S. marketplace, mastering TRO fee management represents more than cost control—it's a strategic imperative for long-term viability. By combining operational excellence with policy awareness, sellers can navigate this financial challenge while maintaining competitive positioning in an increasingly demanding market.