(VitalNews.org) – Many different Chinese merchants are protesting hefty fines from Temu’s newest policy. Many of the frustrated suppliers claimed that Temu is giving them hefty fines more often, and as a result, they’ve been swarming the parent company’s offices in Guangzhou.
Almost eighty merchants entered the office before they were escorted away by police. Temu is currently owned by Chinese retailer PDD Holdings, which is worth one hundred and seventy billion dollars. As a result of the pushback, PDD Holdings shares have dropped three percent.
Temu is looking to recruit Amazon merchants who have goods in the United States and European warehouses. This move toward merchants is most likely a plan to get rid of import duties on cheap goods, especially after the European Union stated that it was coming up with new import plans to go against SHEIN and Temu.
If it moved to an Amazon merchant supply, this would cut down delivery times and would allow Temu to sell larger, higher priced, and bulkier items; it’s also looking to reduce costs by switching to amazon Merchants.
Hong, a leggings manufacturer in Guangzhou, said, “The way Temu is treating its suppliers feels unsustainable. I feel like it cannot last that long.”
A Temu spokesperson said it is “actively working with the merchants to find a solution.”
Temu has been piggybacking off of Shein’s business model by having suppliers ship cheap, lightweight items to those in the West. However, there have been many issues with suppliers such as Temu punishing businesses with fines for faulty packaging, mismatched products, or odd descriptions that don’t reflect the product.
Suppliers have continued to complain to Temu and show up at its offices due to an increase in these fines.
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