How Chinese Entrepreneurs Can Become Temu Sellers in Europe

How Chinese Entrepreneurs Can Become Temu Sellers in Europe

Temu has quickly become one of Europe’s most talked-about e-commerce platforms, attracting millions of buyers searching for affordable products and fast delivery. For Chinese entrepreneurs seeking new international markets, Temu is an attractive gateway to Europe. Its low barriers to entry, integrated logistics solutions, and aggressive customer acquisition strategy make it a strong alternative to Amazon, eBay, and traditional cross-border channels.

Understanding Temu’s Business Model in Europe

Temu’s rise across Europe has been explosive. Since entering the EU market, Temu has quickly become a dominant player by offering competitive prices, aggressive marketing campaigns, and a streamlined shopping experience. What makes Temu especially interesting for Chinese entrepreneurs, however, is not just its popularity-it is the unique business model behind the platform.

Unlike traditional marketplaces, such as Amazon or eBay, Temu uses a “managed marketplace” model inspired by its parent company, Pinduoduo. In a managed marketplace, Temu controls all consumer-facing aspects of the business. Sellers do not communicate directly with buyers, manage listing graphics or descriptions, or handle customer complaints. Temu centralizes all of this.

Temu handles:

  • Product listing creation and optimization
  • Pricing strategy and promotional campaigns
  • End-to-end logistics, including cross-border shipping
  • Customer service, refunds, and disputes
  • Marketing, advertising, and customer acquisition
  • Return processing within the EU

This means that sellers are integrated into Temu’s ecosystem as wholesale partners rather than independent retail sellers. The platform evaluates sellers’ product lines, requests samples, reviews quality and compliance documents, and-if approved-adds products to its catalog under Temu’s format and branding.

What Sellers Focus On

Chinese entrepreneurs who join Temu primarily focus on:

  • Manufacturing or sourcing high-quality, low-cost goods
  • Fulfilling Temu’s shipment instructions to designated consolidation centers
  • Maintaining strict quality control to keep defect and return rates low
  • Ensuring compliance with all EU regulations for their product category
  • Scaling production to match Temu’s demand

This division of responsibilities is one reason why Temu is appealing to Chinese factories, wholesalers, and trading companies. It eliminates many of the complexities associated with entering the European retail market, such as creating listings, paying for ads, dealing with European customers, and managing multi-country logistics.

Why Temu’s Model Benefits Chinese Entrepreneurs

The managed marketplace approach aligns perfectly with the strengths of Chinese suppliers.

  1. Strong manufacturing capacity: Factories can quickly supply large volumes.
  2. Flexible pricing: Chinese manufacturers can compete aggressively in price negotiations.
  3. Temu’s logistics team has existing export experience and is familiar with many Chinese exporters.
  4. There is no need to understand European consumers directly because Temu handles all consumer behavior analytics, marketing data, and pricing strategies.

Temu essentially acts as a bridge between Chinese supply chains and European consumers. This makes it possible for entrepreneurs to enter the EU market without dealing with the traditional pain points of localization, bureaucracy, or retail marketing.

The Strategic Advantage of Temu in Europe

Europe is a complex market comprising 27 countries, each with distinct tax, compliance, and consumer protection regulations. Temu’s model bypasses many of these hurdles. Its unified logistics solution and centralized compliance architecture allow Chinese sellers to access the entire EU market-from Germany and France to Italy, Spain, and the Netherlands-without needing to build a fragmented regulatory and logistical setup. For many entrepreneurs, this makes Temu one of the fastest and lowest-risk ways to enter the European market.

Requirements for Becoming a Temu Seller in Europe

Becoming a Temu seller is not difficult, but the platform enforces a clear set of requirements designed to maintain high product quality, regulatory compliance, and operational reliability. As a consumer-first platform, Temu only accepts suppliers who can demonstrate professional standards and the capacity to consistently supply large volumes.

First, sellers must operate through a legally established business entity. Most Chinese entrepreneurs apply using their Mainland China or Hong Kong company, providing a valid business license, shareholder verification, and a corporate bank account capable of receiving Temu’s international payouts. While having a European company is not mandatory, it can be advantageous for long-term tax planning, faster logistics coordination, and expansion into other EU marketplaces.

Next, Temu places particular emphasis on product compliance. Europe has some of the strictest regulations in the world, and as the retail-facing operator, Temu is directly responsible for ensuring that all products meet EU safety standards. Sellers must therefore be prepared to provide detailed compliance documentation, including CE certificates, RoHS and EMC reports for electronics, EN 71 tests for toys, textile labeling compliance for apparel, and food-contact safety certifications for kitchenware. Temu may request samples, independent laboratory tests, or full technical files before listing a product.

Operational capacity is another core requirement. Since Temu uses centralized consolidation centers in China, sellers must demonstrate that they can dispatch goods in bulk within tight timeframes, accurately follow Temu’s packaging and labeling standards, and reliably forecast inventory levels. The platform penalizes delays, poor packaging, and frequent replenishment issues, so sellers must maintain a disciplined internal workflow.

Pricing is equally important. Temu competes with ultra-aggressive price points across Europe and expects sellers to supply goods at wholesale prices, allowing Temu to sell them at attractive margins. Entrepreneurs must be able to sustain these pricing structures, even as order volumes increase. Temu may request a transparent cost breakdown and will reject products that do not fit its pricing strategy.

Finally, Temu closely monitors supplier behavior. Sellers are expected to maintain low defect and return rates, provide accurate product specifications, respond promptly to internal communications from Temu, and participate in quality or compliance audits whenever requested. Misrepresentation, inconsistent quality, or operational unreliability can result in penalties or permanent removal from the platform.

Overall, these requirements are designed to enable Temu to maintain its fast-growing European presence by relying on a trustworthy and capable network of Chinese suppliers. Entrepreneurs who meet these standards gain access to a powerful sales channel where Temu handles marketing, customer service, logistics, and compliance oversight, leaving sellers to focus entirely on producing high-quality products.

Should You Register an EU Company to Sell on Temu?

Although Temu allows Chinese sellers to operate entirely through a Mainland China or Hong Kong company, many entrepreneurs consider setting up a European company to strengthen their position. This decision is not mandatory for selling on Temu but can significantly impact long-term growth, operational efficiency, and access to the broader EU e-commerce ecosystem.

Temu’s model is designed to minimize entry barriers. Sellers ship in bulk to Temu’s consolidation centers in China. Temu then takes responsibility for customs, import VAT, last-mile delivery, customer service, and returns. This means that the traditional complexities of cross-border e-commerce, such as VAT registration, OSS/IOSS filings, storage regulations, and consumer law compliance, are largely handled by Temu itself. For many Chinese sellers, especially manufacturers, this simplicity is one of the main reasons they choose Temu over Amazon FBA or Shopify.

However, while operating without an EU company is feasible, establishing a European entity has several advantages. For example, managing VAT becomes far more straightforward once a seller has a registered business presence in the EU. If you store inventory in European warehouses at any point (either Temu’s or third-party facilities), having a local company makes it easier to comply with VAT obligations, import procedures, and domestic supply regulations. It also simplifies the process of applying for an EORI number and engaging in cross-border B2B sales within Europe.

Beyond taxation, an EU company often improves operational flexibility. European banks and fintech institutions are much more willing to open accounts for locally registered companies than for foreign entities. Access to EU banking strengthens your ability to receive payments, reduce currency exchange losses, and manage regional financial obligations. It also enhances your credibility with future partners, including logistics providers, landlords, distributors, and other marketplaces.

Another major benefit is the potential for expansion. Many sellers who start on Temu eventually diversify into other marketplaces, such as Amazon, eMAG, Allegro, TikTok Shop, Kaufland Global Marketplace, Zalando, and local European marketplaces. These platforms often impose stricter requirements on cross-border merchants and some require an EU entity or local VAT registration to accept sellers. By forming a European company early on, Chinese entrepreneurs can position themselves for rapid scaling without delays caused by regulatory or administrative bottlenecks.

From a branding perspective, a European company signals stability and a long-term commitment to the market. This is helpful when dealing with EU authorities, partners, and regulatory agencies, especially when handling product compliance, environmental obligations (such as WEEE or packaging regulations), and local representation duties. In certain product categories, such as electronics, cosmetics, and children’s products, having an EU-based responsible person is not only useful, but also legally required. A local company can help fulfill these obligations.

There is also a strategic financial angle. Some EU jurisdictions offer appealing tax structures, simple incorporation processes, and low maintenance costs. The Czech Republic, Slovakia, Cyprus, and the Netherlands are popular choices among Chinese entrepreneurs because of their predictable legal systems, accessible tax regimes, and business-friendly environments. Starting a company in one of these hubs can reduce friction and improve access to incentives, grants, and local service providers.

In summary, while a European company is not necessary to start selling on Temu, it becomes a valuable asset as your business grows. Sellers who plan to use Temu as a short-term or single-channel opportunity can comfortably operate from China. However, sellers with greater ambitions – those aiming to build a robust European presence, diversify sales channels, or engage in deeper supply chain operations – will likely benefit significantly from establishing a local entity. This foundational step creates new opportunities, reduces administrative complexity, and positions entrepreneurs for long-term success across the EU market.

How the Logistics Model Works for Temu Sellers

One reason Temu has scaled so aggressively across Europe is its highly centralized and efficient logistics structure. Temu removes almost all of the logistical burden from sellers, enabling Chinese entrepreneurs to participate in European e-commerce without dealing with the usual complexities of international shipping, customs procedures, and last-mile delivery management. Understanding this logistics system is essential because compliance with Temu’s processes directly affects approval, performance scores, and long-term cooperation.

Temu operates through a model resembling a hybrid of cross-border wholesale distribution and controlled marketplace logistics. Unlike Amazon or AliExpress, sellers do not ship individual parcels to customers. Instead, Temu instructs each supplier to deliver products to specific consolidation centers in China. These centers are operated either directly by Temu or by Temu-authorized logistics partners. Sellers must adhere to strict timelines, packaging protocols, and quantity requirements when delivering goods to these facilities because Temu uses them to streamline export operations.

Once products reach a consolidation center, Temu assumes responsibility for the entire downstream process. The company completes export declarations, organizes international shipping, handles customs clearance in the destination country, and manages all final delivery steps. Because Temu ships on a large scale-moving vast volumes of goods daily across major air and sea routes-it can negotiate favorable transportation rates and pass these cost advantages on to consumers and sellers. This is one reason Temu can offer ultra-low retail prices in Europe.

Temu’s European logistics network is designed to move products quickly and cost-effectively. After arriving at EU entry points, shipments are sorted and dispatched through local partners, including DHL, GLS, DPD, Royal Mail, and national postal services. Temu has built regional distribution centers in key European hubs, enabling faster processing and more consistent delivery times across the continent. Consequently, even though the supply chain originates in China, customers in Germany, France, Italy, and other EU countries often receive orders within a few days.

A unique aspect of Temu’s model is that, when operating under Temu’s default logistics scheme, sellers never interact with European customs or maintain their own IOSS, OSS, or import VAT registrations. Temu handles all import duties and taxes through intermediaries or its own EU-based entities. This allows Chinese entrepreneurs to focus purely on production and supply planning, eliminating the need to navigate the complex tax framework of the European Union.

However, this convenience comes with obligations. Sellers must adhere to Temu’s strict packaging and labeling guidelines to ensure smooth handling throughout the supply chain. Each product must be correctly barcoded, sealed, and packed according to Temu’s specifications. Inconsistent packaging, incorrect labels, or damaged goods can result in penalties and negatively affect your supplier score. Temu maintains a zero-tolerance approach to logistical inefficiencies because even minor deviations can disrupt its high-volume distribution system.

Inventory management is another crucial component. Temu uses an algorithm to forecast demand and provides sellers with replenishment instructions. Sellers must respond quickly-ideally within days-to maintain adequate stock levels. Failure to restock in time can result in product shortages, affect Temu’s promotional strategy, and result in penalties for the supplier. High-performing sellers typically maintain open communication with Temu’s logistics coordinators and demonstrate consistent delivery capability.

Temu may also offer select suppliers the option to store inventory in European warehouses for faster distribution. While this hybrid model accelerates delivery times, it introduces additional tax and compliance obligations, such as VAT registration in the country where goods are stored. Sellers considering this option often benefit from professional tax and legal assistance to ensure compliance.

In essence, Temu’s logistics framework is designed to make cross-border e-commerce nearly effortless for sellers. By centralizing and automating the most complex elements-customs, import VAT, international shipping, and last-mile distribution-Temu enables Chinese manufacturers and traders to access Europe at an unprecedented speed and scale. Sellers’ roles are streamlined: deliver high-quality products to designated locations in China, comply with Temu’s packaging rules, and maintain the production capacity needed to keep the system running smoothly.

Compliance and Tax Considerations

Although Temu simplifies many aspects of international e-commerce, sellers must still navigate the complex landscape of European compliance rules and tax obligations. Temu’s business model reduces the operational burden on entrepreneurs but does not eliminate legal responsibility, particularly regarding product safety, environmental regulations, and proper documentation. Understanding these rules is essential for maintaining a smooth relationship with Temu and protecting your business from penalties, product bans, and supply chain interruptions.

At the heart of European regulation is the principle of consumer protection. The EU enforces some of the strictest product safety standards in the world, and Temu is legally required to ensure that every item sold on its platform complies with these standards. Consequently, Temu conducts rigorous checks on suppliers and may request extensive documentation before approving a product category. For many Chinese entrepreneurs, the most challenging aspect of selling to Europe is not the logistics or platform rules, but rather the need for precise regulatory compliance.

Product certification is the first major pillar. Electronics must comply with CE, RoHS, EMC, and other relevant directives. Toys require EN 71 testing and mandatory warning labels. Cosmetics fall under Regulation (EC) 1223/2009 and must be registered in the EU’s CPNP database. Textile products must include accurate fiber composition labels, care instructions, and country-of-origin information. Kitchenware and food-contact items must meet LFGB or equivalent EU standards. Each product category has its own technical and documentation requirements. Temu may request full technical files, factory audits, or additional tests before listing a product.

Since Temu is the retail-facing entity in Europe, the platform shares legal liability for noncompliant goods. Therefore, sellers must provide accurate certifications and avoid submitting outdated, incomplete, or unverified documents. Submitting false or misleading compliance paperwork is one of the fastest ways to lose access to the platform, and Temu is becoming increasingly strict as European regulators increase their oversight of imported goods.

Environmental and recycling obligations form the second major area of compliance. Europe enforces Extended Producer Responsibility (EPR) frameworks for several product types, including electronics (WEEE), packaging materials, textiles, furniture, and batteries. Although Temu handles much of this centralized compliance on behalf of sellers, certain items may require direct involvement from the manufacturer to provide documentation, add proper recycling symbols, or register product types with national authorities. Depending on the arrangement, Temu may request that the supplier take responsibility for specific EPR activities in some countries.

Labeling requirements also play a critical role. All products must include clear instructions, warnings, specifications, and importer details in the languages of the countries where they are sold. Incorrect or missing labels may result in customs delays, product recalls, or immediate listing removal. Before mass production, Temu may ask sellers to provide packaging mock-ups to ensure that everything meets EU standards.

The tax landscape is equally important. Under Temu’s standard cross-border model, Temu manages import VAT, customs duties, and IOSS/OSS obligations using its own systems. This is a significant benefit for Chinese sellers because it eliminates the need for individual VAT registrations in each EU country. Sellers who ship exclusively through Temu’s consolidation network do not interact directly with European customs; Temu handles the entire process.

However, if a seller chooses-or is invited-to store inventory in Europe, tax obligations shift. In that case, the seller may be required to register for VAT in the country where the goods are located. This applies even if Temu continues to handle consumer-side logistics. For instance, storing goods in Poland requires Polish VAT registration, and storing goods in Germany requires German VAT and EPR compliance for packaging. Professional legal and tax support is strongly recommended in such scenarios, as European tax rules can be highly technical and vary between jurisdictions.

Another consideration for sellers who operate both a Chinese manufacturing entity and a European company is transfer pricing and corporate structuring. If a China-based factory sells goods to an EU company owned by the same entrepreneur, the pricing structure must comply with OECD transfer pricing guidelines to avoid future tax disputes.

Finally, sellers should understand that Temu periodically reviews suppliers for ongoing compliance. This may include sample inspections, document updates, testing renewals, and random audits. Temu uses a risk-based approach-products with higher regulatory scrutiny, such as baby items or electronics, undergo stricter and more frequent checks.

In short, compliance and tax considerations are essential for successful selling on Temu. Although the platform simplifies customer-facing and logistical aspects, it requires sellers to demonstrate full professionalism regarding regulatory matters. Meeting these obligations protects your business and strengthens your credibility with Temu. This increases your chances of being selected for promotions, being included in high-traffic campaigns, and gaining greater visibility across the European market.

Below are the steps for a Chinese entrepreneur to start selling on Temu in Europe.

Although Temu’s model simplifies many aspects of cross-border e-commerce, becoming a Temu seller still requires a structured, step-by-step approach. Each stage is designed to help Temu identify reliable suppliers, verify product quality, and ensure that all goods comply with European legal standards. For Chinese entrepreneurs, understanding these steps in advance helps streamline the application process and increases the likelihood of fast approval.

The journey typically begins with evaluating product-market fit. Temu is not a platform for every product type. Instead, it focuses on categories with stable demand, fast turnover, and competitive pricing, such as homeware, apparel, small electronics, household décor, beauty accessories, kitchen gadgets, and trending low-cost items. Before applying, sellers should review their product portfolio and ensure that their pricing, production capacity, and quality standards align with Temu’s expectations. Products requiring complex certification, posing high safety risks, or offering low profit margins are less likely to be selected.

Once you have identified suitable products, the next step is to register as a Temu supplier. This involves submitting your company documentation, business license, shareholder details, and identity verification. Temu will also ask for information about your manufacturing capabilities, production capacity, supply chain structure, and the product categories you intend to offer. Temu will then assess whether your business has the operational reliability and volume potential needed to support European demand.

If Temu finds your initial application promising, you will advance to the quality and compliance review phase. This is one of the most important steps in the entire process. Temu may request product samples, packaging photos, factory certifications, lab test reports, and any other documents required by EU law for compliance. The platform takes its compliance obligations seriously, so incomplete or inaccurate documentation may delay approval or result in the rejection of specific product lines. Sellers often benefit from organizing compliance documents in advance and ensuring that all certificates are up to date and sourced from accredited testing laboratories.

Once the compliance review is complete, successful applicants will receive a Temu Supplier Agreement. This contract outlines Temu’s pricing framework, logistics procedures, quality standards, liabilities, and penalties for noncompliance. The agreement is the legal foundation for your cooperation with Temu, and sellers should be prepared to adhere strictly to its requirements. The agreement may also specify margin expectations, replenishment timelines, and behavioral obligations for supplier conduct.

After signing the contract, sellers enter the supply onboarding phase. Temu will provide instructions on how to package, label, and deliver goods to its designated consolidation centers in China. You will also receive guidance on inventory submission, product information, barcoding standards, and shipment scheduling. It is crucial at this stage to maintain clear internal processes within your factory or warehouse because Temu closely monitors performance from the first shipment.

Once your products successfully reach Temu’s consolidation center, the platform takes full control of the logistics chain. Temu will handle export declarations, international shipping, customs clearance in Europe, and distribution to customers. You will then transition to the ongoing operations stage, during which you are expected to respond to replenishment requests, maintain product quality, and communicate promptly with the Temu operations team.

Temu evaluates seller performance during this stage based on defect rates, packaging accuracy, delivery punctuality, and overall cooperation. High-performing sellers-those who maintain consistent quality and meet Temu’s deadlines-often gain priority in promotions and may be invited to introduce additional product lines.

In summary, the process of becoming a Temu seller is clear and structured: choose suitable products, apply as a supplier, undergo compliance checks, sign the agreement, deliver initial shipments, and maintain strong operational performance. Although Temu offers a simplified entry into the European market, it requires professionalism, documentation readiness, and consistent product quality from its suppliers. Entrepreneurs who meet these expectations find that Temu is one of the most efficient platforms for building a large-scale European presence with minimal administrative burden.

Advantages of Selling on Temu for Chinese Entrepreneurs

Temu has quickly become one of the most attractive platforms for Chinese entrepreneurs looking to access the European market. Its business model, infrastructure, and aggressive growth strategy create an environment where sellers can scale rapidly without the usual complexities associated with international expansion. Understanding these advantages helps entrepreneurs determine whether Temu aligns with their long-term growth plans and operational capabilities.

Perhaps the most significant advantage is the dramatic reduction in operational burden. Traditional cross-border e-commerce requires sellers to manage listings, advertising, customer service, returns, VAT registrations, international shipping, and disputes-all of which are time-consuming and expensive. Temu removes almost all of these responsibilities. The platform manages product listings, handles all customer interactions, resolves disputes, negotiates logistics rates, and oversees final delivery across Europe. This allows sellers to focus primarily on product quality, manufacturing, and pricing rather than administrative complexities.

Another key benefit is Temu’s extensive investment in marketing and customer acquisition. Temu is known for its high-profile advertising campaigns, including social media giveaways, television ads, and influencer partnerships. Rather than spending significant budgets on pay-per-click (PPC) advertising, as is common on Amazon or TikTok Shop, Temu absorbs this cost, driving massive traffic to the platform. For suppliers, this means immediate access to millions of European consumers without needing to establish an independent brand presence or conduct costly marketing experiments.

Temu also provides a unified entry into the entire European Union, which is otherwise a highly fragmented, heavily regulated market. The 27 countries that make up Europe each have their own tax rules, consumer laws, and compliance requirements. Typically, sellers would need to navigate this patchwork country by country. However, Temu’s centrally managed compliance and logistics framework bypasses many of these barriers. When you supply goods to Temu, your products are available throughout Europe from the beginning, enabling faster and broader market penetration than traditional e-commerce channels.

Another advantage is the predictability of the logistics and cost structure. Since Temu handles export, import, shipping, and last-mile delivery, sellers encounter fewer uncertainties regarding transportation or customs delays. Temu’s size enables it to negotiate lower international shipping rates and more favorable EU distribution partnerships, which benefits sellers by lowering costs and helping maintain competitive retail pricing. Sellers are also shielded from the complexities of IOSS, OSS, and VAT management when operating through Temu’s default model.

Temu’s system offers exceptional scalability, appealing particularly to manufacturers and trading companies with strong production capacity. Once a product proves successful, Temu can rapidly increase order volumes, enabling sellers to scale up without worrying about order processing capacity or customer service overload. This can lead to significant long-term partnerships, in which high-performing sellers are invited to expand their catalogs and participate in major promotions across multiple EU markets.

Another important advantage is risk reduction. Since Temu manages the buyer-facing side of transactions, sellers are protected from many of the reputational risks that appear on other platforms, such as negative reviews, A-to-Z claims, customer refund disputes, and account suspensions. With Temu’s centralized model, customer dissatisfaction rarely falls directly on the seller. Instead, Temu handles resolutions and only escalates problems related to product quality or inaccurate descriptions.

Finally, Temu is an excellent first step for broader European expansion. Many Chinese entrepreneurs use Temu as an entry point before branching out into Amazon FBA, TikTok Shop, local marketplaces, or their own EU-based e-commerce operations. Temu generates initial cash flow, validates which products perform well with European customers, and provides a low-risk environment for understanding EU compliance requirements. Once a seller has established a solid foundation, transitioning to other sales channels becomes significantly easier.

These advantages make Temu one of the most accessible, low-risk, and scalable platforms for Chinese sellers entering Europe. Temu combines simplified cross-border operations, strong demand generation, and predictable cost structures-elements rarely found together in the e-commerce ecosystem. For entrepreneurs with reliable supply chains and competitive pricing, Temu offers a powerful gateway to one of the world’s most lucrative consumer markets.

How RUE Can Assist Chinese Entrepreneurs Selling on Temu

While entering the European market through Temu offers remarkable opportunities, it also requires a strong understanding of legal, tax, and compliance standards. This is where RUE plays a crucial role. RUE provides comprehensive, end-to-end support that covers every stage of the process-from strategic planning and company formation to compliance, accounting, and long-term operational assistance-for Chinese entrepreneurs who want to expand into Europe with minimal risk and maximum efficiency.

Many sellers start on Temu using a Chinese company but soon realize that establishing a sustainable presence in Europe requires better infrastructure. RUE helps entrepreneurs establish European companies in business-friendly jurisdictions, such as the Czech Republic, Slovakia, the Netherlands, Poland, and Cyprus. These entities support Temu operations and open doors to additional marketplaces, such as Amazon, TikTok Shop, Allegro, and Kaufland Global Marketplace. We guide clients through the entire formation process, handle documentation, and ensure compliance with local corporate laws.

Once the company is established, RUE assists with banking and payment solutions. We help entrepreneurs open EU business bank accounts or fintech accounts that support international transactions, multi-currency settlements, and smooth cash flow management. European banks can be difficult for non-resident owners to navigate, but RUE ensures clients avoid common pitfalls by preparing proper documentation and clearly explaining banking requirements.

A crucial part of selling on Temu or storing goods within the EU is tax compliance. Although Temu handles VAT for cross-border shipments, sellers may still require VAT registration if they store inventory in European warehouses or engage in B2B transactions. RUE manages VAT registration, EORI numbers, OSS/IOSS considerations, and ongoing VAT filings to ensure full compliance with EU tax regulations. Our accounting team provides continuous support, allowing entrepreneurs to focus on production instead of tax administration.

Product compliance is another area where RUE provides valuable assistance. The European Union has strict safety and labeling standards, and failing to comply can result in product bans, customs seizures, or platform penalties. We help clients understand and meet these requirements by providing guidance on CE marking, RoHS, WEEE, textile labeling, packaging regulations, cosmetic compliance, and food-contact certification, depending on the product type. We also assist with preparing technical documentation, risk assessments, and communicating with accredited testing labs when needed.

In addition to compliance support, RUE assists entrepreneurs with drafting contracts and providing legal advice. We ensure that agreements with Temu, suppliers, logistics partners, and employees protect the client’s interests. This includes reviewing Temu’s supplier agreements, advising on pricing structures, and explaining obligations related to penalties, performance expectations, and operational standards.

To ensure long-term success, RUE offers comprehensive accounting, payroll, and bookkeeping services to help European companies stay compliant with local reporting requirements. We provide ongoing professional support tailored to the client’s business model, whether it’s preparing annual financial statements, communicating with local tax authorities, or managing corporate governance.

Finally, RUE helps entrepreneurs strategize beyond Temu. For sellers who want to diversify or expand, we provide guidance on market selection, logistics optimization, fulfillment options, and marketplace onboarding. Temu may be the entry point, but many of our clients eventually transition to multi-channel operations, and we help build a solid foundation for that growth.

In essence, RUE is a reliable partner for Chinese entrepreneurs entering Europe through Temu. We combine legal expertise, practical business knowledge, and hands-on support in every area required for compliance and expansion. By working with RUE, sellers can reduce risk, save time, and establish a long-term European presence on a solid, professional foundation.

FREQUENTLY ASKED QUESTIONS

No, a European company is not required to begin selling on Temu. Most Chinese entrepreneurs start with their Mainland China or Hong Kong company. Temu’s model allows sellers to ship in bulk from China to its consolidation centres, after which Temu handles customs, import VAT, and all European distribution. However, establishing an EU company becomes advantageous once you begin scaling, storing inventory in Europe, or expanding into additional marketplaces.

The timeline varies depending on product category, documentation quality, and the volume of applications Temu is processing. On average, initial approval takes between 2 and 6 weeks. Products requiring more complex EU certifications-such as electronics, baby items, or cosmetics-may undergo a longer review as Temu verifies compliance documents, test reports, and sample quality.

Temu focuses on fast-moving, competitively priced products that appeal to a broad consumer base. These typically include homeware, apparel, small household gadgets, kitchen tools, beauty accessories, LED lighting, phone accessories, and simple electronics. Products with straightforward compliance requirements and low defect rates tend to perform particularly well. Items with high safety risks or complex certification needs may face stricter review or may not be accepted at all.

Under Temu’s default logistics model, Temu takes responsibility for all import VAT, customs declarations, and IOSS/OSS filings. Sellers do not interact with European customs directly, which is one of the biggest advantages of the platform. However, sellers who store goods in European warehouses-either Temu’s or third-party facilities-may need to register for VAT in that country. In such cases, proper tax planning and compliance support become essential.

RUE supports Chinese entrepreneurs at every stage of their European expansion. We assist with EU company formation, opening local bank accounts, obtaining VAT and EORI registrations, ensuring product compliance (CE, RoHS, WEEE, textile labelling, packaging rules, cosmetics regulations), drafting and reviewing contracts, and providing long-term accounting and tax services. For many sellers, RUE also helps create a strategic plan for entering additional marketplaces such as Amazon, TikTok Shop, Allegro, and others.

Our legal and corporate setup services for expanding into Europe start from 1,500 EUR, depending on the chosen jurisdiction and the scope of support required. This allows entrepreneurs to establish a solid legal and tax foundation as they grow their presence on Temu and beyond.

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