Temu is urgently recruiting senior risk control and compliance executives based in the United States, but was criticized by sellers for six major minefields!

Temu's development is speeding along in overseas markets, but the external resistance is becoming more and more severe.

In April, the U.S.-China Economic and Security Review Commission (USCC) under the U.S. Congress released a new report accusing Temu of various issues. In May, U.S. congressmen sent a letter to Temu to review the allegations.

On June 22, the U.S. House of Representatives Committee released the results of the first round of investigations, pointing out that Temu had violated U.S. tariff regulations and had evaded taxes by exploiting loopholes in tax laws. It also required Temu's 80,000 suppliers to agree to relevant terms.

According to the investigation, Temu shipped millions of packages to the United States duty-free each year without providing adequate information about the packages to CBP.

In addition to avoiding customs duties, Temu's small packages also avoid inspection by U.S. Customs and Border Protection, which rarely scrutinizes small packages worth less than $800 because of the large number of such packages.

Although Temu has not yet responded to the allegations, there have been reports recently that according to recruitment information on LinkedIn, Temu is recruiting a US-based compliance officer to develop policies and procedures related to its financial business, such as anti-money laundering, licensing requirements and reporting obligations.

Another job posting shows that Temu is also seeking a lawyer specializing in trade compliance to help it develop commodity screening protocols.

Temu has not yet responded to the recruitment issue. However, it is not difficult to guess that the strict scrutiny from the United States is having a negative impact on it, so it urgently needs professional compliance officers to help it avoid related risks.

It can be seen that with the continuous escalation of foreign regulatory efforts, not only Temu, but many overseas platforms are facing increasing resistance. Under this situation, transferring the headquarters overseas and promoting the diversified development of the supply chain have become one of the necessary countermeasures.

Despite the increasing regulatory pressure in the United States, Temu's global expansion remains unabated. According to the latest data from market research firm Yipit, Temu's GMV in the United States, Canada, Australia and New Zealand reached US$634.8 million in April this year.

As Temu gradually becomes a new force that cannot be underestimated in the overseas market, more and more merchants are flocking to the platform. The survey found that from the feedback of many merchants who have entered Temu, the advantages of the platform are fast promotion speed, the ability to create hot products, and the overall sales are relatively impressive, but at the same time, the profit dilemma is always a thorn in the side.

Recently, a seller revealed that a Temu seller had sales of 400,000 in April. However, in sharp contrast to the huge orders, the profit was extremely thin - only 7,000 yuan.

Another seller also revealed: "At the beginning, the orders were quite strong, about 500,000 a week, but the profit was low, 2 to 3 yuan per order. As a result, I fell into the pit immediately after replenishing nearly 1 million yuan of goods. I couldn't enter the warehouse or put them on the shelves. When I could enter the warehouse, I couldn't sell them. I had to start lowering the price to clear the stock. In short, after all the trouble, not only did I not make any money, but I lost most of it."

As their profits are almost completely eaten up, Temu sellers are like playing a minesweeper game, and they can easily step on a platform mine if they are not careful:

Temu has received mixed reviews from the outside world since its development. But for many sellers, the pain of thin profits and cruel platform rules far outweighs the joy of booming sales.

Judging from feedback from multiple parties, many sellers who lack supply chain advantages generally use Temu as a channel to clear Amazon inventory after trying it out, rather than as a long-term overseas platform.

The general environment of economic downturn provided a breeding ground for Temu's low-price model, which led to its rapid rise amid doubts. However, from past experience, many cross-border platforms also used low prices as their entry point when entering the European and American markets, but they inevitably started high and ended low, hitting a wall when optimizing the seller structure, strengthening quality control, and upgrading services.

How long can Temu's model of sacrificing profits for growth last? Whether it will follow the same path as similar platforms in the future, only time can tell.