Temu takes Ecuador by storm; Sales could top $1 billion in 2025
Temu, the Chinese online shopping platform, is blowing up in Ecuador! According to Ecuadorian customs, the volume of packages from Temu has been skyrocketing so fast they’ve had to add more workers to keep up. A manager at the Guayaquil Customs Service even said Temu's shipments are "off the charts."
Temu, known as Pinduoduo in China, is giving big players like Amazon, Alibaba, and Shein a run for their money. Globally, they’re expecting sales to jump from $9 billion in 2020 to a massive $50 billion by 2024. In Ecuador alone, sales hit $236 million in 2022, are on track to reach $500 million in 2024, and could soar to $1 billion by 2025. Thanks to a new trade deal between China and Ecuador, Temu has been able to lower costs and streamline shipping, passing those savings on to customers.
Temu’s secret sauce? They cut out the middleman by working directly with manufacturers, which keeps prices super low. For example, hiking shoes selling for $87 on Amazon go for just $27 on Temu. They’re also offering deep discounts—sometimes up to 90% off—along with freebies for first-time buyers.
Despite their success, Temu has faced scrutiny in some countries, like the U.K., where they’ve been investigated for unfair pricing and labor practices. So far, no serious actions have been taken, and Temu has denied any wrongdoing, showing documents to support their claims of fair wages. Even in China, there have been protests accusing Temu of undercutting local businesses, but no illegal activity has been found.
In Ecuador, Temu's low-cost shipping is handled through the 4 x 4 plan, allowing packages under 4 kilos and $400 to enter tax-free. Most deliveries take 18 to 24 days, using local couriers like Servientregas and DHL. Although some customers have had complaints about the service, a local e-commerce blogger known as El Chivato says things are improving. He also notes that returning items is tricky but blames this on Ecuador’s small, isolated market—pointing out that it’s a challenge for Amazon too.
