Online marketplace Temu has announced a partnership with global logistics company DHL Group to expand its European operations and streamline deliveries for local customers. The two companies signed a Memorandum of Understanding (MoU) this week, outlining plans to leverage DHL’s logistics infrastructure to support Temu’s “local-to-local” strategy, which aims to ship products within Europe rather than relying on cross-continental supply chains.
The collaboration comes as Temu prepares for regulatory changes in the European Union. Currently, imports valued under €150 are exempt from duties, but this threshold will be eliminated by July 2026. To adapt, Temu has begun establishing warehouses across Europe to store goods closer to customers, reducing reliance on long-distance shipping. DHL’s expertise in regional logistics will help Temu manage inventory distribution, faster deliveries, and customs processes as it scales these efforts.
Central to the partnership is Temu’s goal to source and ship 80% of its European sales locally within the next few years. The local-to-local model involves working with small and medium-sized enterprises (SMEs) in Europe to stock products in nearby warehouses, enabling quicker turnaround times for orders. Temu believes this approach will not only comply with upcoming duty regulations but also improve customer satisfaction through shorter delivery windows.
DHL’s role will include optimizing Temu’s supply chain networks, managing warehousing solutions, and providing last-mile delivery support in key markets. The companies emphasized that the partnership will focus on supporting SMEs in both established economies, such as Germany and France, and emerging markets in Eastern Europe. By reducing logistical barriers, Temu aims to help smaller businesses reach a broader audience without the complexity of international shipping.
Temu’s rapid growth in Europe since its 2023 launch has been fueled by competitive pricing and a vast product range, but the platform faces challenges in balancing cost efficiency with regulatory compliance. The abolition of the €150 duty exemption threatens to increase expenses for cross-border e-commerce companies, making localized operations critical for Temu’s long-term viability in the region.
The company has not disclosed specific details about warehouse locations or investment figures but confirmed that its European logistics network is already operational in several countries. Temu’s parent company, PDD Holdings, has previously allocated significant resources to global expansion, with Europe being a priority market.
Industry analysts suggest the partnership with DHL could give Temu an edge over competitors by combining the marketplace’s aggressive pricing with faster, more reliable shipping. However, challenges remain, including competition from established players like Amazon and Shein, as well as navigating complex EU regulations on data privacy and product safety.
For now, Temu appears focused on building a sustainable logistics framework. “This collaboration is about preparing for the future while supporting small businesses today,” a Temu representative stated. The company reiterated its commitment to helping SMEs grow their online presence, particularly as cross-border e-commerce rules evolve.