SYDNEY: E-commerce giant Temu has announced it will allow Australian businesses to sell directly to local consumers on its platform, marking a significant expansion of its marketplace model.
Temu, known for its ultra-low prices and vast product selection, has quickly gained traction in Australia amid rising cost-of-living concerns. A recent survey by National Australia Bank (NAB) found that more than 70% of Australians are now more price-conscious compared to last year.
The company’s decision to onboard Australian sellers follows similar local-to-local marketplace rollouts in more than a dozen markets, including the United States, the United Kingdom, Germany, France, Japan, and South Korea. Previously perceived as a hub for inexpensive overseas goods—primarily from China—Temu’s move will integrate local delivery speed and familiarity with its hallmark competitive pricing.
Australian consumers are actively seeking cheaper alternatives across shopping categories, with research from Roy Morgan showing 62% of shoppers prioritizing cost savings. Temu’s mobile shopping experience, coupled with prices often 30–70% lower than traditional retailers, has positioned it as an attractive option for budget-conscious buyers.
For small and medium-sized businesses, Temu’s expansion represents a strategic opportunity. With rising customer acquisition costs on major platforms like Meta, TikTok, and Google, sellers could leverage Temu’s marketplace to reach a sizable, price-sensitive audience with minimal barriers to entry.
Consumer expectations around delivery speed remain high, with most online shoppers anticipating parcels within two to five days. Slow fulfillment is often cited as a deterrent to repeat purchases, making Temu’s ability to balance affordability with logistical efficiency a key factor in its Australian expansion.