A peer Temu seller recently said that from January 1, 2025, Temu regulations will limit the number of stores under a company entity to no more than 2, and only one can be registered under full custody and half custody.
The good news is that it has no impact on the old stores that have already been opened.
The bad news is that if a new seller wants to open a store, they have to follow this rule.
Previously, individual entities were allowed to open 3 sub stores, while company entities were allowed to open 20. Many early entrants to the market went crazy to shop and sell their products, and many even sold themselves, perfectly avoiding Temu's pricing. On the surface, the buyer demands a lower price from seller A than seller B, but in reality, both parties may have the same interests behind it.
I speculate that the introduction of Temu's new regulations is clearly aimed at guiding sellers to shift from their previous stocking model to a more refined and high-quality operational model. By limiting the number of stores, Temu aims to encourage sellers to pay more attention to product quality, service experience, and user feedback, thereby improving the overall quality and user experience of the platform.
Industry insiders speculate that the introduction of the new regulations may pave the way for a larger plan - Temu may launch a "third-party platform model" (POP) in the future.
At present, the news of Temu restricting the number of stores has been confirmed by many buyers and sellers.