---
title: "Temu's front-end prices skyrocketed overnight, while fully managed sellers' sales plummeted?"
description: "Temu is responding to changes in U.S. tax policies by advancing its semi-managed business to adapt to the market. The platform has adjusted its pricing strategy, relaxed the compression standards for "
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/227994099.md"
published_at: "2025-02-12T07:00:13.000Z"
---

# Temu's front-end prices skyrocketed overnight, while fully managed sellers' sales plummeted?

> Temu is responding to changes in U.S. tax policies by advancing its semi-managed business to adapt to the market. The platform has adjusted its pricing strategy, relaxed the compression standards for white-label products, and is considering opening third-party self-operated stores. This move aims to help sellers cope with tariff fluctuations, enhance operational flexibility and efficiency, while marking Temu's shift from high control to moderate delegation

Author: A Fei @AMZ123

Image source | pexels

At the beginning of 2025, the repeated fluctuations in U.S. tariff policies have caused the cross-border e-commerce industry to experience a rollercoaster-like shock. Although the exemption policy has temporarily resumed, industry insiders generally believe that this is merely a stopgap measure, and in the long run, the abolition of the "small tax exemption" policy has become a foregone conclusion.

In this context, the operational model of cross-border e-commerce is being pushed to accelerate its transformation by the tides of the times. In the face of the constantly changing policy environment, the resource allocation of platforms is also quietly adjusting, with the semi-managed model gradually becoming the key to future development.

**Temu Releases Transformation Signals Again**

AMZ123 has learned that in response to adjustments in U.S. tax policies, Temu is rapidly advancing its semi-managed business.

According to Lei Feng Network, Temu has loosened its pricing strategy for the semi-managed model, no longer solely pursuing the compression strategy of 60-70% off Amazon's pricing standards for white-label products. Meanwhile, its internal team is discussing whether to open up third-party self-operated store access earlier, allowing merchants more autonomy while Temu provides operational assistance.

Insiders have revealed that there is a possibility this adjustment could be implemented as early as March this year. However, as of the time of publication, Temu has not released any related notifications or news.

Industry insiders analyze that Temu's adjustment is not only a proactive response to external policies but also an opportunity to accelerate the formation of a new business model.

On one hand, Temu's traffic allocation mechanism is automatically switched, and the semi-managed model can effectively accommodate some of the inventory from fully managed merchants, helping sellers navigate the "darkest moments" brought about by tariff fluctuations.

The "one-item transfer" feature previously launched by Temu is also seen as an important preparation for transitioning to the semi-managed model: lowering the threshold for model switching while enhancing operational flexibility and efficiency. Additionally, recently, Temu launched a pre-sale feature aimed at helping sellers better adapt to market changes and improve inventory management efficiency.

On the other hand, this also marks Temu's shift from "highly controlled" to "moderately decentralized." This may break the original competitive landscape, providing merchants with more flexible operational space, while also signaling that the relationship between the platform and sellers will enter a new round of game and rebalancing. However, finding the best combination between efficiency and freedom will become a key proposition for Temu's next stage of development.

In fact, since Temu officially launched its semi-managed business in 2024, despite actively seeking merchants in the early stages, actual progress has been quite difficult. Citigroup analysts previously estimated that by the end of 2024, the total transaction volume of goods in local warehouses would only contribute over 20% of the transaction volume in the U.S. market The reason is that the semi-managed model is more suitable for merchants who have already developed mature businesses in the cross-border e-commerce field and have their own warehousing and logistics partners. These merchants typically possess strong operational capabilities and experience in resource allocation.

For sellers who are just starting out or rely on fully managed platforms, the challenges of transitioning to a semi-managed model, such as logistics, customs clearance, and cost control, often make it difficult for them to adapt in the short term, and they may even lack the motivation to transform.

Therefore, despite Temu investing a large amount of resources in attracting merchants, it still faces bottlenecks due to insufficient willingness to transform and high operational difficulties.

However, with the sudden changes in policy, many merchants have had to choose to embrace the semi-managed model to adapt to the constantly changing market environment.

Industry insiders believe that semi-managed operations can not only effectively respond to short-term tariff adjustments but also help platforms, including Temu, gain a competitive advantage in the long term. Localizing cargo can not only avoid the impacts of sudden changes in tariff policies but also resolve issues such as unstable customs clearance times and delayed deliveries, thus providing more stable operational guarantees for merchants and platforms.

**Front-end prices soar, Temu sellers' sales plummet**

AMZ123 has learned that many sellers have recently reported that the front-end prices on Temu have skyrocketed, leading to a significant drop in sales.

"I used to sell 1,000 orders a day, now it's down to 300 orders. The drop in sales makes me question life, and the profits have been squeezed dry by the platform!"

"Overnight, the front-end prices of all products in the store increased across the board, with some rising by half of the previous price and others doubling. Now the same product on Temu is priced tens of dollars higher than on Amazon, and I really don't know how to sell it."

"I finally found out why sales have been cut in half; the front-end price was directly raised by $30! And I still have hundreds in stock, but it shows only 5 left. Temu really knows how to play."

"The front-end prices suddenly increased by $3-8 overnight, what a joke."

This sudden price increase has left many sellers astonished, and they have expressed difficulty in understanding and accepting it: "I don't even know the reason for the price adjustment; the front-end prices on Temu have always been a mystery."

Industry analysis suggests that Temu's recent price increase, while appearing to be a "market behavior," actually hides "the platform's little calculations."

Firstly, the recent price increase on Temu may be a direct response to the sudden tariff adjustments. The platform has shifted the tariff costs onto sellers and consumers to alleviate the supply chain pressure and cost fluctuations caused by market changes. However, this transfer strategy does not take into account the actual bearing capacity of merchants, which has instead put some sellers in a difficult position.

In reality, the price increase implies an overall strategic adjustment by Temu. Insiders have revealed that Temu officials have clearly stated that they will vigorously promote semi-managed operations in the future and gradually shift traffic towards this model.

AMZ123 has learned that many sellers in Temu's groups have reported a noticeable decline in traffic for the fully managed model, significantly impacting their sales Some sellers have indicated that through sampling and price comparison of the same products on Temu's U.S. site on February 5 and February 7, they found that the prices of fully managed products on Temu's U.S. site increased by 32%, while the prices of semi-managed products remained almost unchanged. Meanwhile, the proportion of fully managed product prices on Temu's U.S. site compared to similar products on Amazon also rose from about 70% to 90%.

More critically, with the adjustment of tariff policies, Temu has notified airlines to suspend pickups, with the suspension period lasting from 8 to 15 days. There are reports that the grounding of some cargo planes is indeed due to requests from Temu.

It is evident that Temu is very determined to promote the semi-managed model. As mentioned earlier, the transaction volume of the semi-managed model accounted for 20% of Temu's GMV in 2024, and the market expects this proportion to further increase in 2025.

Therefore, when the "shoe drops" on tariff policies, only those companies that have made early arrangements will be able to firmly grasp the opportunities in this transformation.

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
