According to ECDB, Temu has become the leading online retailer in Croatia, Finland, Hungary and Slovenia. The platform, owned by China’s PDD Holdings, entered Europe in 2023 and quickly captured market share in nations that lack major domestic competitors such as Amazon or Allegro. Its rise reflects weak local ecommerce infrastructure and aggressive pricing strategies, allowing the service to attract price-sensitive shoppers.
The retailer’s dominance in these markets stems from the absence of strong local alternatives. None of the four countries where it ranks first has a full-scale Amazon presence or a dominant marketplace like Poland’s Allegro or the Netherlands’ Bol. Consumers in the region appear willing to shop from international platforms, giving the company an opening to expand its catalog.
In eight other European markets, Temu holds the second spot: Austria, Bulgaria, Czechia, France, Greece, Norway, Portugal and Slovakia. Its performance in France, the region’s largest market, is particularly notable, where it trails only Amazon despite facing multiple local rivals. ECDB attributes this success to the ability to undercut competitors on price while offering a broader product variety than traditional retailers.
Growth occurs as the European Union tightens regulations on cross-border shipments from China. On 1 July, the European Union introduced a temporary import duty of €3 per product category for parcels worth up to €150. From July 2028, this will be replaced by regular customs tariffs. Additionally, a handling fee, though its exact amount remains undetermined, will be introduced by 1 November at the latest.
To mitigate these costs, the retailer is shifting away from cross-border shipments. The company has opened warehouses in Europe and expanded partnerships with local parcel carriers. Its long-term goal is to fulfill 80% of European orders from local facilities, reducing reliance on direct shipments from China. The current rankings, based on 2025 data, serve as a benchmark for tracking the impact of these changes.
