Temu expands European delivery network
Temu, the rapidly growing ecommerce player from China, has expanded its European delivery network through partnerships in Germany, Italy, Spain, and Portugal and more logistic collaborations seem to be on the horizon.
Temu was launched in Europe about seven months ago, after its U.S. launch in September last year. Its business model involves dropshipping: shipping products directly from manufacturers, reducing costs and inefficiencies associated with traditional retail supply chains. Temu is backed by the Chinese tech giant and Pinduoduo owner PDD Holdings, which opened an office in Dublin this spring.
After its introduction, Temu quickly became one of the most frequently downloaded apps in various countries, captivating mobile users longer than other shopping apps with its substantial discounts, refer-a-friend promotions, and gamification elements. Ecommerce giants like Amazon and eBay saw their daily mobile shoppers decline with the entry of the Chinese newcomer.
Meanwhile, Temu has been working to improve its logistic proposition for shoppers in Europe. It has partnered with Mail Alliance in Germany, Poste Italiane in Italy, and CTT in the Iberian Peninsula.
German Mail Alliance will contribute its network of 55,000 delivery personnel to the collaboration, according to Temu. The company is Germany’s largest network of private postal service providers, known for its capacity to handle large volumes and swift delivery times.
Italian Poste Italiane will collaborate with Temu on initiatives such as PIN code-enabled lockers and local stores serving as pick-up and drop-off points. The partnership also includes environmental strategies, such as reducing carbon emissions and employing eco-friendly packaging.
CTT, the national postal service of Portugal operating in Spain through CTT Express, is expected to play a key role in supporting Temu’s growth in the Iberian market.
In 2024, the company plans to enhance its logistics partnerships to further streamline ecommerce delivery and returns processes.