The Reality of TEMU's Local Entry: The Myth of 0% Commission and the Reality of "Thin Profit Pressure" — The Shifting Landscape of Brazil's E-commerce with 2-Day Delivery and Local Sellers

What Happened: TEMU Lifts "Local to Local" Restrictions

On October 30 (local time), TEMU officially lifted restrictions on accepting local sellers in Brazil. They removed the invitation-only system, allowing Brazilian companies to list products with local inventory. Products with local inventory promise delivery in as fast as two business days, positioning TEMU to challenge Shopee and Mercado Livre with short lead times.ecommercebrasil.com.br

The company explained, "We offer new growth opportunities to local businesses and a wide range of products quickly to consumers." The acceptance of local sellers has already been expanded to over 30 markets, including the US, Germany, France, Italy, Spain, and Mexico, with Brazil being part of this expansion.Mercado&Consumo

Registration & Requirements: Low Entry Barriers but "Maintenance Capability" is Key

According to reports, registration is free. A CNPJ (Brazilian taxpayer number) is required, and individual entrepreneurs (such as MEI) are also eligible. There are reportedly over 600 categories. In practice, sellers need to register business information, personal identification, and store information in the seller center.ecommercebrasil.com.br

Fees & Initial Incentives: Zero Commission "Limited Time" Theory

A summary in InfoMoney suggests that an initial exemption from sales fees (e.g., the first 30 days) has been announced. The official rate table is not publicly available, and conditions may vary based on contracts and scale. Thus, while entry is easy, the actual cost is case-by-case.infomoney.com.br

Competitive Landscape: Shopee's "Over 3 Million Local" Barrier

TEMU's full-scale localization is also an attempt to penetrate the stronghold of Shopee, which has been advancing localization. As of 2024, Shopee reported over 3 million local sellers, with about 90% of sales being local. Shopee has been leading the "local production for local consumption" e-commerce in Brazil.ecommercebrasil.com.br

In terms of access rankings, a report suggests that TEMU took the "top spot in visits" in July 2025 (a different concept from sales leader). However, as monthly rankings fluctuate, it's important to read the visualization indicators (visits, orders, GMV) separately.centraldovarejo.com.br

Tax System and Speed: Towards the "Next" in Cross-Border

In 2024, TEMU obtained certification for Brazil's tax-free scheme "Remessa Conforme," accelerating the cross-border model. The subsequent localization aims to enhance the perceived value of "2 business days" by advancing inventory without customs clearance, marking the second phase.Reuters

Social Media Reaction: Expectations and Caution Intersect

• In marketing circles, attention is on "local opening × 2-day delivery." Posts promoting the "speed advantage" stand out alongside news sharing.X (formerly Twitter)

• Some creators are promoting "0% commission to attract sellers." However, the truth of the period and application conditions is fluid, necessitating verification of primary information.Instagram

• In media for sellers, there is a calm explanation that "exposure is attractive, but caution is needed due to margin deterioration from price-prioritized design." Voices urge scrutiny of cost structures, including the operation of returns and compensation.ExpoEcomm

Operational Perspective: The Winning Strategy is "Turning 2-Day Delivery into Profit"

TEMU's value lies in "exposure × short lead time." However, short lead times simultaneously impact all KPIs, including inventory turnover, delivery lead time, and return rates. Here are the practical strategies to win:

1. SKU Design: Start with small, lightweight, and durable categories. Secure gross profit with "limited colors," "set combinations," and "simple bundles" that can easily pass on the cost increase of 2-day delivery.

2. Inventory Placement: Stabilize D+2 with forward inventory in urban areas (using cross-docking). Prepare "backup SKUs" to prevent exposure drops in case of stockouts.

3. Rate Design: Optimize in the order of earning CVR while initial incentives are available → exposure coefficient → natural exposure. Protect "basic indicators" such as the number of evaluations, response speed, and delivery delay rate.infomoney.com.br

4. Return Process: Standardize criteria for immediate refund/resend based on photo/video evidence. Control excessive costs with package strength × enclosed documents.

5. Core Integration: Automation of orders, inventory, and billing is essential. Future support is expected for inventory and WMS integration with Bling and Tiny (based on explanations).ExpoEcomm

What Changes with "Local Opening": Consumers, Sellers, and the Market

• Consumers: Competition advances not only in price but also in "perceived speed," increasing options for 2-day delivery.ecommercebrasil.com.br

• Sellers: While the cards for multi-channeling increase, gross profit tends to be thin when looking at the total cost of fees, advertising, returns, and pick-packaging..docs.m2ecloud.com

• Market: TEMU's "local × price" clashes with Shopee's local network and Mercado Livre's logistics leadership in a three-way battle. Rankings tend to fluctuate monthly, making it important to discuss the content of GMV (cross-border vs. local) separately.centraldovarejo.com.br

Points to Watch (Checklist)

• "Official Disclosure" of Fees: Updates on official information regarding initial exemptions and category-specific fees.infomoney.com.br

• Seller Tools: Maturity of APIs and dashboards for advertising, coupons, and review operations.

• Integration Expansion: Official connectors with domestic SaaS (Bling, Tiny, UpSeller, Magis5, etc.).ExpoEcomm

• Logistics KPI: Trends in D+2 achievement rate, delay, damage, and return rates.ecommercebrasil.com.br

• Regulatory Trends: Scope of tax and consumer protection application in the transition from cross-border to local.Reuters
  
  

References (Primary Information & Major Reports)

• E-Commerce Brasil "TEMU opens marketplace for Brazilian sellers" (10/30/2025) — CNPJ requirement, delivery in as fast as 2 business days, free registration.ecommercebrasil.com.br

• Mercado & Consumo (10/30/2025) — Local to local delivery in 2 business days, over 30 target countries.Mercado&Consumo

• InfoMoney (11/01/2025) — Mention of lifting invitation-only system and initial fee exemption (summary of report).infomoney.com.br

• Shopee's local scale (over 3 million, about 90% of sales are local) — E-Commerce Brasil/ABComm.ecommercebrasil.com.br

• Reuters (05/20/2024) — TEMU obtains "Remessa Conforme" certification.