Discount online retailer Temu is reportedly recruiting employees from its rivals, namely Walmart and Amazon. With tariffs on imported goods from China, the online marketplace is potentially looking to build out its presence in the U.S.
According to Business Insider, several new Temu hires had similar roles at previous e-commerce companies. Reportedly, some were from Amazon and Walmart as well as a few formerly employed by TikTok.
“We have been expanding our team to help bring more U.S. sellers onto the platform, giving them more choice and a low-cost way to grow their businesses,” a spokesperson told Business Insider. “To support this, we have hired experienced people to help expand opportunities for local sellers and strengthen local sales.”
Apparently, the new employees specialize in approaching brands and manufacturers with the intention of adding more products to Temu’s product offerings. Other duties include onboarding the new sellers and creating marketing strategies.
Temu’s Strategy To Dodge Tariffs
To help avoid tariffs, Temu has shifted some inventory from Chinese warehouses to U.S.-based facilities. Shipping from warehouses closer to shoppers also helps reduce delivery times, which has been a major drawback of buying on the platform despite the low prices.
For years, both Temu and SHEIN took advantage of U.S. customs law by using the de minimis exemption, which allows goods worth less than $800 entry into the country without a duty fee. However, earlier this year, the Trump administration eliminated the exemption.
Temu responded by promoting “local” products on the app. Items listed for sale with a green badge can be shipped free of any associated customs fees.
Ultimately, the president reversed the decision and reinstated the de minimis provision. Nonetheless, parent company PDD Holdings refuses to take a “wait and see” approach when it comes to customs policy. In a recent earnings call, co-CEO Chen Lei said the company anticipates continued “challenges to [its] global business” and will further “experiment with innovative localized supply chain solutions.”
The U.S. is the biggest marketplace for Temu, so it makes sense it would want to expand in the states. It appears the company is also actively recruiting business development managers in Europe and Canada.
