Temu catches up with Amazon: Chinese platform captures 24 percent market share
What seemed unthinkable three years ago has become reality in 2025: According to t3n, Temu has reached nearly Amazon’s level with 24 percent global market share. The US corporation reports 25 percent and is thus entering striking distance of the Chinese trading platform for the first time. The International Post Corporation (IPC), a consortium of 26 national postal and logistics companies, surveyed around 31,000 consumers in 37 countries for this survey. Amazon declined continuously from 26 to 25 percent over the past year. Temu scores particularly well with smaller, low-priced goods through aggressive pricing, optimized logistics costs, and clever exploitation of regulatory gaps.
Competition between platforms intensifies
Temu’s rise is no isolated case. Shein, for example, maintains its market share stably at nine percent. The shifts demonstrate: competition among international platforms is sharpening dramatically, market shares are changing faster than ever before. eBay is hit particularly hard, losing around 68 percent market share between 2018 and 2025 and falling back to fifth place with five percent. In 2018, the figure was still 17 percent. According to the IPC, global supply chains are undergoing structural change, triggered by new customs and import regulations from 2025 that are expected to have further effects through 2026.
Temu strategically exploited de minimis thresholds for customs and import sales tax for years. But the framework conditions are changing: the USA abolished the de minimis rule for commercial imports. Goods below a threshold value are no longer duty-free importable. The EU is also tightening regulations and will impose a flat fee of three euros for every package with a goods value under 150 euros from non-EU countries starting July 2026.
Temu invested high sums in marketing
Whether Temu and Shein’s business model will function under these conditions remains open. The platforms also face criticism for lack of transparency in supply chains, possible violations of labor and human rights standards, and environmental damage from ultra-fast fashion and high return rates. Consumer advocates criticize the increased use of gamification approaches and countdowns.
Temu benefits from China’s record trade surplus of 1.19 trillion US dollars in 2025 and close ties to cheap production and supply chains. Parent company PDD Holdings operates Pinduoduo, one of China’s largest e-commerce platforms. Both portals position themselves in price-driven online retail and serve the budget segment. The rise was achieved through massive marketing budgets.
High sums flowed into extensive SEA campaigns, strong presence on social media, and elaborately produced commercials during Super Bowl 2023 and 2024, the most expensive media placement in the USA. Amazon countered with Amazon Haul, a platform for products up to 20 euros that deliberately forgoes fast delivery—but fell far short of Temu’s success.
Whether Temu can continue its rapid rise under tightened regulations remains uncertain. What is certain: global online retail is increasingly shaped by Chinese platforms, market leadership in cross-border e-commerce is no longer assured. For Amazon, this means a new phase of intense competition. This affects not only price, but also logistics, regulation, and customer loyalty. The coming years will determine whether Temu can maintain its position or whether regulatory hurdles will slow growth.
