Temu has grown into one of the most popular online retailers in many parts of the world, but this is especially true for Europe. Only a few years after debuting in the region, it currently sits within the top 10 most popular ecommerce retailers in most countries across Europe, even coming in at first place in some of them.

There are many reasons for this growth and success, such as its low prices, gamified app, and the existing market gaps in some parts of Europe. In response to this growth, the EU has been aiming to slow down the expansion of Temu and other low-price ecommerce importers.

Temu Has Become a Dominant Online Retailer in Europe

While Temu has had a controversial rise to success over the last few years, there’s no doubt that it’s become a major player in online retail. This is especially true in Europe. In fact, Temu ranks within the top 10 most popular online retail platforms in nearly every European nation.

It has done especially well in Hungary, Slovenia, Croatia, and Finland, where it operates as the largest ecommerce retailer. The platform also sits in second place in many other markets, including France, Norway, Portugal, Bulgaria, Greece, Czechia, Slovakia, and Austria.

Struggling to Reach the Top in Some Larger Markets

However, while Temu is fairly popular in almost all regions of Europe, it struggles to reach the top of the rankings in some of the larger markets in Europe. This includes:

• Germany
• The UK
• The Netherlands
• Switzerland
• Spain
• Italy

A big reason why Temu has failed to enter the top two platforms in these regions comes down to their ecommerce sectors. Many of these larger markets have had established ecommerce hierarchies that were already solidified well before Temu came to Europe back in 2023.

While the platform can grow and find success in these regions, it struggles to uproot many of the more established platforms that shoppers are often more comfortable with.

As a result, whether Temu dominates a region, or just participates as a fairly successful platform, often comes down to the strength of the market and the other platforms it needs to compete with.

If there’s a gap in a particular market, with no established leader, Temu has been able to swoop in and become that leader or at least compete for the spot. But in places where local and homegrown retailers have established themselves, or where Amazon has a strong presence, it hasn’t become quite as popular.

A Meteoric Rise For the Platform

Despite only being in Europe for a little over three years, the growth Temu has achieved is very impressive. There are a few reasons why it’s likely been able to grow so quickly. First, the low prices it offers are nearly impossible for other retailers to match. As a result, budget-conscious consumers flocked to Temu in droves to take advantage of the savings.

Next, the platform has also widened its product variety over time and started to work with European sales partners and sellers for better consumer familiarity. The platform has also marketed itself heavily in the region, especially in major markets.

Finally, the platform also became very popular among shoppers by gamifying the shopping experience with spin-to-win wheels, games, tasks, countdown timers, and more. All of these help boost engagement and ensure the app feels like more than just a place to shop.

In addition to being a popular choice among consumers, many sellers across Europe have also taken a liking to the platform. In fact, around one-third of European small businesses selling on the platform have expanded their reach into new international markets since joining Temu.

The EU Has Attempted to Curb This Rapid Growth

While Temu is surely enjoying its success and growth in Europe, the EU doesn’t seem to be as thrilled. In fact, it has taken steps to actively slow down the rapid growth of Temu and other similar platforms like Shein.

Beginning a few months ago, the EU removed the customs duty exemption on imported parcels valued at under €150 and began charging a small fee on low-value imports, which hit retailers like Temu especially hard. 

This has already led to platforms like Shein and Temu pulling back on European ads. In addition to customs changes, some countries have also levied fines and penalties against these retailers.

Our Take

Temu Shouldn’t Be Ignored Any Longer

While Temu was once seen as nothing but a novelty and a platform for people to buy cheap, low-quality imported products, it has developed into a major marketplace for global sellers of all shapes and sizes.

Also, even though this article has focused on Temu’s growth and success in Europe, it’s also incredibly popular in other regions like the USA, Canada, Mexico, Australia, and many others.

As a result, ecommerce brands looking to expand their reach and grow their customer base can no longer treat Temu as an afterthought, and need to consider selling on the platform. But even if it’s not right for you, you still can’t ignore it, as Temu has reshaped many consumers’ expectations when it comes to things like pricing and the shopping experience.