On Tuesday, the White House confirmed that U.S. President Donald Trump plans to implement new reciprocal tariff rates on April 2, despite prior statements from Treasury Secretary Scott Besant suggesting that the new rates might be delayed. This announcement also signals the potential cancellation of Section 321 Type 86, a policy that has allowed streamlined customs clearance for low-value shipments. Such changes are expected to significantly impact cross-border sellers on platforms like Temu and Amazon.

How Will Temu and Amazon Respond to the Challenges?

Temu's Full-Managed Model Transition

According to internal sources, Temu is urging sellers to migrate their popular products from the Full-Managed Model to the same Full-Managed Model by April 1. This move is in response to anticipated traffic declines for the Full-Managed Model after April, which Temu plans to address by prioritizing promotion and support for the Full-Managed Model business.

To expedite the transition, Temu has launched a new cross-entity product migration feature called "Same SKU Binding." This tool allows sellers to quickly transfer their best-selling products between stores operating under the Full-Managed Model. Sellers who opt for this migration will enjoy several benefits:

Traffic Boost: Products transitioned to the Full-Managed Model will receive enhanced visibility through Temu's market promotion and search recommendation strategies. This means traffic will be strategically allocated to Full-Managed Model products.

Pricing Prioritization: Temu will provide streamlined pricing support for products migrated to the Full-Managed Model, ensuring efficient integration into its promotional campaigns.

This shift underscores Temu's increased focus on supporting Full-Managed Model stores, offering sellers greater traffic allocation and operational advantages.

Exploring a New Business Model

In addition to optimizing its existing Full-Managed Model and Full-Managed Model structures, Temu is actively exploring the introduction of a third-party platform model. This move aims to address market challenges and enhance competitiveness. According to reports, Temu may open its third-party platform to sellers as early as March, allowing merchants to independently select products, set prices, and manage stores, similar to platforms like Taobao. This model would enable sellers to ship directly to overseas customers, with Temu earning revenue through transaction commissions.

While the third-party platform model has yet to officially launch, industry experts believe it could be a transformative step for Temu. By diversifying its business model, Temu could attract a broader range of merchants, expand its product offerings, and strengthen its supply chain. The addition of this model would complement its existing Full-Managed Model and Full-Managed Model structures, offering sellers and consumers more flexibility and choices.

This strategic shift also positions Temu to better compete with Amazon's recently announced low-cost marketplace, Haul.

Amazon's Next Move: Launching Haul in Europe

Recent reports reveal that Amazon plans to launch its low-cost marketplace, Amazon Haul, in Europe later this year. This move is seen as a direct response to the rise of platforms like Temu, SHEIN, and TikTok Shop, which have gained significant traction by offering ultra-low-cost products. While details about Haul’s expansion remain limited, an Amazon spokesperson stated that the company continues to explore innovative ways to collaborate with sellers and deliver more options, lower prices, and greater convenience to global consumers.

Haul's entry into the European market presents both opportunities and challenges. On one hand, Europe's e-commerce landscape differs significantly from the U.S., with consumers placing greater emphasis on sustainability and product quality over extreme price reductions. On the other hand, established low-cost platforms already have a strong foothold in Europe, boasting advantages in brand recognition, user trust, and localized services.

Interestingly, sources suggest that Amazon may use plastic packaging for Haul's shipments, which could conflict with its sustainability goals in the region.