The e-commerce platform Temu, known for its low barriers to entry, is implementing stricter regulations that will substantially increase financial requirements for sellers in certain product categories. The changes particularly affect merchants offering children's toys, power banks, and memory cards.
Higher Financial Commitments
Under the new policy, sellers in the children's toys and memory card categories will now be required to maintain deposits of 10,000 yuan (approximately $1,380), while power banks containing batteries face a significantly higher requirement of 30,000 yuan (about $4,140). These adjustments represent just the beginning of Temu's enhanced regulatory measures.
Strict Penalties for Non-Compliance
The platform has introduced severe financial consequences for violations. Should any store or product receive a recall notice or warning from regulatory authorities, the required deposit will immediately escalate to 100,000 yuan (approximately $13,800). Additional penalties ranging from 10,000 to 100,000 yuan will be imposed for various infractions including:
- Products failing quality inspections
- Submission of falsified certifications or intellectual property documentation
- Intentional concealment of product information
These measures compel sellers to prioritize product quality, regulatory compliance, and intellectual property protection more rigorously than before, as even minor oversights could result in substantial financial penalties.
Platform's Quality Control Initiative
The deposit adjustments form part of Temu's broader strategy to strengthen marketplace oversight and elevate product standards. For merchants, this translates to increased operational costs and heightened financial risk exposure. Industry analysts suggest that sellers must thoroughly review the updated regulations, adhere strictly to platform policies, and ensure full compliance to maintain sustainable operations on the marketplace.