Temu has Launched a Local Warehouse in South Africa

Temu has launched a local warehouse in South Africa, marking a significant step in its expansion within the country and improving the shopping experience for South African consumers. This new local warehouse allows Temu to offer much faster delivery times, with some orders arriving in under two days, including next-day delivery options. Items stocked in this warehouse are tagged as “local,” making it clear to shoppers that these products are dispatched directly from within South Africa.

Since its debut in South Africa in January 2024, Temu has become popular for offering heavily discounted goods imported directly from China through local logistics partners. The company’s aggressive pricing strategy and massive marketing efforts, including a 1,000% increase in advertising spending in 2023, helped it quickly gain traction. One of Temu’s marketing highlights has been gamification, such as a virtual spinning wheel that offers first-time shoppers substantial discounts. Despite these successes, Temu has faced criticism from local businesses who argue that foreign importers exploit tax loopholes to undercut domestic retailers, especially in the clothing and textile sectors.

The launch of Temu’s warehouse in South Africa is the company’s first major move toward domestic expansion since entering the market 18 months ago. While Temu itself does not own the warehouse, it partners with trusted third-party logistics providers who manage inventory, shipping, and after-sales services. This local warehousing model allows Temu to stock a wider range of products, including bulkier items like furniture and homeware, which were previously difficult and expensive to ship from overseas.

This warehouse launch comes amid important changes in South African import tax regulations. The South African Revenue Service (SARS) had a concession since 2007 allowing low-value imports under R500 to pay a flat 20% duty without VAT, aimed at simplifying customs clearance for international e-commerce. However, local businesses argued this created an unfair advantage for foreign sellers like Temu, who could avoid the higher 45% duty on imported clothing. SARS initially planned to apply the full 45% duty on all clothing imports from July 2024 but instead introduced an interim measure from September 2024, adding 15% VAT on top of the 20% duty for low-value orders. From November 2024, SARS began aligning the flat 20% duty with World Customs Organisation guidelines, though implementation was delayed until early 2025 to balance industry interests.

Industry experts, such as Garry Marshall, chair of the South African Express Parcel Association, note that while the customs process is legal, the main concern is the impact on local industries, especially clothing and textiles. He also emphasized that the original customs concession was not intended to reduce costs but to speed up delivery times, which is crucial given that most courier shipments are cleared before arriving in the country. Removing the concession entirely could have slowed down import processes significantly.

Temu’s local warehouse in South Africa is expected to put pressure on local e-commerce platforms like Takealot and even global giants such as Amazon, which entered the South African market in 2024. By offering faster delivery and a broader product range, Temu aims to improve customer satisfaction and loyalty. The company’s local warehouse dispatch service is part of a global strategy to reduce delivery times and expand merchandise selection, with similar models already in place in markets like the US, Canada, Australia, and several European countries.

Temu has launched a warehouse in South Africa to provide faster delivery and a wider variety of products to local shoppers. This move follows regulatory changes that have affected import duties and VAT on low-value goods, pushing Temu to adapt its business model. While the company does not own the warehouse, its partnerships with local logistics providers enable it to offer next-day delivery and improve the overall shopping experience for South African consumers. This development signals a new phase for e-commerce in South Africa, with Temu strengthening its position in a competitive market.

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