Temu, the Chinese e-commerce platform known for its steeply discounted goods, has taken a bold step into the South African market by launching a local warehouse—its first major domestic expansion since entering the country in January 2024.
Temu now has a warehouse in South Africa
Although no formal announcement has been made by the company, shoppers browsing Temu’s app or website may now notice products tagged as “local.” This label, according to reports, signals that the item is stocked in South Africa and can be delivered within two days, often as quickly as the next day.
In contrast, items still shipped from China rely on import partners such as Buffalo Logistics, with Fastway handling domestic deliveries.
Temu operates by connecting overseas suppliers, primarily based in China, with customers around the world.
This direct-from-source model, which removes traditional retail middlemen, allows the platform to offer items at much lower prices.
Since launching globally in 2022 and debuting in South Africa 18 months ago, Temu has rapidly scaled up, including a reported 1,000% increase in advertising spend in 2023, much of it channelled into social media.
The launch of a warehouse in South Africa is expected to change the game for local logistics. For one, it means customers will no longer wait weeks for goods to arrive.
More importantly, however, it suggests a shift in how Temu navigates customs and tax obligations.
Temu’s entrance has not been without controversy. Industry critics have raised alarms about its use of a longstanding import concession.
Since 2007, the South African Revenue Service (SARS) has allowed low-value imports—those under R500—to enter the country under a flat 20% duty, excluding VAT.
Initially intended to simplify customs for courier companies, this rule is now seen as a loophole.
Retailers, particularly in the clothing and textile sector, say Temu’s pricing gives it an unfair advantage.
Instead of paying the standard 45% duty on imported clothing, they allege Temu benefits from the R500 threshold rule, enabling it to flood the market with cheaper alternatives.
Concerns have also emerged in the tech space. Local businesses claim that some electronic products sold via Temu’s platform bypass important regulatory checks.
These include required certifications for devices that emit radio waves or operate on electricity—essential for ensuring safety and quality.
Temu, a subsidiary of PDD Holdings and a sister company to Chinese retail giant Pinduoduo, has maintained that it addresses product complaints and removes sellers who violate its standards.
But its aggressive growth continues to raise questions around regulation, tax fairness, and market impact.
While the launch of a warehouse might improve customer experience and reduce delivery times, local industry players are watching closely to see how Temu adapts to South Africa’s trade laws and regulatory environment—especially in sectors where compliance is already under strain.