Amazon vs. Temu: Why both are now copying their model
Just two years ago, e-commerce logistics was clearly divided. Over decades and billions of dollars, Amazon had built up a domestic fulfillment network that made speed and convenience the standard. Temu and Shein, on the other hand, relied on a radically different model: direct shipping from Chinese factories, taking advantage of the de minimis duty exemption ($800 in the US, €150 in the EU) to avoid customs costs and drive down prices.
This separation is now dissolving. Both sides are moving toward a model of competition—not because they want to give up their core strengths, but because they recognize that modern e-commerce requires both.
Temus Transformation: From waiting a week to two-day shipping
The figures are remarkable: in January 2024, not a single US sale from Temu came from local warehouses. By July 2024, this figure had risen to 20%. The targets are aggressive: 50% local-to-local in the UK by the end of 2025, 80% in Europe via local warehouses.
In concrete terms, this means that some Temu orders now arrive within two days—a quantum leap from the weeks-long wait times that defined the early Temu experience.
The asset-light approach is strategically interesting: Temu is not building its own warehouse network, but is working with fulfillment providers such as WINIT and Easy Export. In Turkey, Temu is testing an invitation program for local sellers with next-day delivery.
Amazon's response: Haul and Bazaar
Amazon is taking the opposite approach. Amazon launched Bazaar, a standalone app that extends the haul experience (mostly direct from China) to 14 additional countries. Together with the existing haul markets, Amazon's low-price/slow-shipping model is now present in over 25 markets.
The mechanics: Direct shipping from Chinese warehouses, items under $20, delivery in two weeks or less.
The global expansion of Bazaar signals that this is not an experiment that Amazon will abandon.
The regulatory driver: The end of the de minimis era
The catalyst for this convergence is regulatory in nature. The US suspended its $800 de minimis threshold for Chinese imports in May 2025. Temu and Shein were then forced to raise prices and restructure their operations.
The EU is following suit: the abolition of the €150 duty-free allowance has been decided. An interim framework will be introduced in 2026, with complete elimination in 2028 with the launch of the EU Customs Data Hub.
Without duty-free direct shipping, platforms must offer other compelling reasons to ship from abroad—and that is precisely what drives the two-tier strategy.
The result: two-tier assortment strategies
Convergence leads to a new operating model:
Temu and Shein maintain direct-from-China for price-sensitive products, but add local fulfillment for speed and expanded categories.
Amazon retains FBA as its backbone, but is testing Direct-from-China via Haul/Bazaar for ultra-low-price goods.
TikTok Shop —whose sales are primarily driven by content, not logistics—nevertheless recognizes that fulfillment speed is crucial for sustainable growth.
The core message
Neither side is abandoning its core model. Amazon is sticking with Prime, and Temu is not leaving Direct-from-China. But both recognize that e-commerce is no longer one-dimensional.
The key insight: logistics is just as much a part of the product as the product itself.
The winners will be those platforms that master both "fast and convenient" and "cheap but slower" at the same time—without sacrificing what made them successful in the first place.