What is Temu and how does it work? The Chinese giant that's shaking up online shopping and causing concern in Uruguay.

Temu , the Chinese e-commerce platform owned by PDD Holdings, is expanding its presence in Latin America , raising concerns in Uruguay's commercial sector. Since its launch in April 2024, purchases through this app have increased significantly. According to data from the National Customs Directorate, more than 167,000 shipments were recorded in March 2025, surpassing the 166,900 from the previous December.

The Uruguayan duty-free regime allows three annual purchases of up to USD 200 and 20 kilos each, tax-free. In addition, the simplified regime authorizes unlimited purchases of up to USD 200 and 20 kilos , with a payment of 60% of the value. These conditions facilitate access to imported products at low prices, which affects local businesses.

Julio Lestido, president of the Uruguayan Chamber of Commerce and Services , warned in an official statement that current conditions put merchants at a disadvantage. Herminio Castro, president of the Chamber of Footwear and Textile Importers, noted that the increase in purchases on platforms like Temu could have devastating consequences for the sector.

Temu offers a wide variety of products at competitive prices, attracting consumers looking to save money. However, this strategy raises concerns among traditional retailers, who face tough competition.

The Uruguayan government is analyzing the impact of this platform on the local economy. In April, representatives of the Chamber of Commerce met with President Yamandú Orsi and the Ministry of Economy and Finance to discuss the issue. Authorities acknowledge the situation and are working on possible solutions.

In Argentina , Temu has recently launched and is beginning to gain consumer attention. Uruguay's experience serves as a warning about the challenges local businesses may face as international e-commerce platforms expand.

The situation in Uruguay reflects a global phenomenon, where platforms like Temu, Shein, and AliExpress benefit from favorable trade agreements and tariff policies. In the United States, for example, tariff reductions on low-value imports benefit these e-commerce giants.

Temu's growth poses significant challenges for local businesses in Latin America . The need to adapt trade and tax policies becomes crucial to balance competition and protect local economies.

Users download the app or visit temu.com, search for products, add them to their cart, and pay online. You can find clothing, technology, kitchen utensils, toys, tools, and more.

The user experience is visual, with ongoing promotions , prices in pesos, and free shipping in many cases.

Sells items starting at less than $1. Prices are driven by the "factory-to-consumer" model, which avoids wholesalers, distributors, or physical stores.

Although shipments originate from Asia , Temu achieves deliveries within 7 to 20 days thanks to logistics agreements with international companies. In some countries, it partners with official couriers or door-to-door services.

In countries such as Uruguay and Argentina, Temu benefits from simplified import regimes that allow small purchases to be imported tax-free or with minimal tariffs .

The platform guarantees returns, refunds, and order tracking, which builds confidence in new buyers.