🛍️ Temu's New Checkout Policy
Chinese e-commerce platform Temu has introduced a mandatory checkout range of $35-40 (VND887,000–1 million) for customers in Vietnam. This week, users noticed that orders below $35 were blocked, while those exceeding $40 needed adjustments to comply. Temu states the policy allows it to "offer more affordable items." However, shoppers feel otherwise. "This policy makes the platform less attractive compared to its competitors," said Hieu, an online shopper from Ho Chi Minh City.
💸 Rising Minimum Order Requirements
Temu's minimum order threshold has risen dramatically since its September debut in Vietnam. Initially set at $5 (VND120,000), it increased to $26 (VND632,000) last week, before hitting $35 this week—a sevenfold hike in just two months. While Temu has not officially explained the $40 cap, analysts suggest it aims to stay under Vietnam's e-commerce tax threshold for items under $40, which the government is considering removing due to an influx of 4-5M shipments daily from China.
⚖️ Regulatory Scrutiny Intensifies
Temu's operations in Vietnam are under the government’s radar. Authorities have warned that all unregistered e-commerce platforms will face blocking measures. Temu is still in the process of registration with Vietnamese authorities, as disclosed on its app. Meanwhile, officials are cracking down on platforms avoiding taxes, with Temu reporting zero revenue in its third quarter and projecting earnings only from October onward.
🌐 The Bigger Picture
Temu, owned by Singapore-based Elementary Innovation Pte. Ltd., is navigating a competitive e-commerce market in Vietnam while adhering to evolving regulations. The platform faces criticism for requiring advance payments and higher checkout thresholds, which could alienate price-sensitive shoppers. Meanwhile, rivals like Shein and Lazada offer less restrictive options. As Vietnam tightens e-commerce rules, Temu’s success depends on balancing compliance with customer expectations.
Is Temu's checkout limit fair or frustrating?
