Starting August 10, 2026, Temu shut down small fully-managed forward consolidation warehouses in Guangzhou, Dongguan, and Zhaoqing, consolidating remaining inventory to large central warehouses in Yiwu and Shenzhen.
The warehouse consolidation was triggered by the European Union's cancellation of the tariff exemption for import parcels valued under 150 euros, effective July 1, 2026. Under the new policy, a fixed tariff of 3 euros is levied per HS code declaration, and with approximately 20% VAT added, the comprehensive tax burden on low-value direct-mail goods has risen significantly.
Temu has simultaneously established over 10 self-operated warehouses in Germany and Poland, with a target of 80% of European orders fulfilled from local warehouses by the third quarter. The platform is also pushing sellers toward semi-managed models, with US semi-managed orders now accounting for 75% of total orders.
The shift reflects a broader transformation in cross-border e-commerce logistics, with platforms moving from tax-free direct-mail dependence toward localized warehouse operations. Yiwu's role as a central consolidation hub is further reinforced by this trend.
Source: Yiwu Index / Ebrun
