Temu, the fast-growing Chinese e-commerce platform, has launched its first local warehouse in South Africa, marking a significant step toward domestic expansion. This move promises faster delivery times, with next-day shipping now possible for selected products marked “local.”
Since its January 2024 debut in the country, Temu has relied heavily on cross-border logistics and aggressive marketing to gain market share. Now, with a local distribution center in place, the platform is signaling long-term commitment to South African consumers.
The warehouse’s arrival also aims to improve logistics efficiency and customer satisfaction amid growing competition and regulatory scrutiny.
Faster Deliveries, But Courier Details Missing
Shoppers can now spot locally stored items on Temu’s site, tagged as “local,” and expect deliveries within two days. However, the platform does not disclose the couriers handling these expedited shipments.
Previously, imported products listed Buffalo Logistics and Fastway as handling delivery. Whether these logistics partners are involved in local deliveries remains unclear.
The warehouse move could enhance Temu’s competitiveness against rivals like Shein, especially as local consumers increasingly demand faster, more reliable service.
Temu’s Strategy Backed by Heavy Marketing and Discounts
Temu’s global rise was powered by massive advertising campaigns. Reports revealed the platform boosted its marketing spend by 1,000% in 2023, with a heavy focus on social media ads.
Gamified promotions, like spin-the-wheel discounts, enticed new users. But these tactics came at a cost—Goldman Sachs estimated a $7 loss per order due to steep discounts and ad expenses.
Temu’s formula of low prices, novelty, and fast growth has drawn both attention and controversy.
Facing Regulatory Pressure and Local Industry Backlash
Temu’s popularity didn’t come without friction. Local South African retailers and manufacturers criticized the platform for exploiting customs duty loopholes, allowing it to undercut local businesses.
The issue centered around a 2007 South African Revenue Service (Sars) concession that let importers pay a flat 20% duty on orders under R500, exempt from VAT. Critics argued this allowed unfair pricing in the clothing and tech sectors.
In response, Sars initially planned to impose a full 45% duty on all relevant imports but later shifted to a compromise approach.
Sars Adjusts Policy Amid Stakeholder Concerns
From 1 September 2024, Sars started adding 15% VAT to the existing 20% duty on low-value imports. Then in February 2025, it implemented new guidelines to better align with international standards.
Garry Marshall of the South African Express Parcel Association explained that while the previous system wasn’t illegal, it had unintended consequences for local industries. Removing it entirely could’ve caused delays in customs clearance.
“Speed was always the main goal of the duty concession,” Marshall said, emphasizing that changing the system too drastically would risk slowing down the entire courier pipeline.
No Comment Yet from Temu
Despite the major announcement of its local warehouse, Temu has not responded to media requests for comment. The silence leaves questions around logistics partnerships and future expansion plans unanswered.
Still, the move signals that Temu is here to stay—and it’s gearing up to become an even more dominant force in South Africa’s evolving e-commerce space.
