Temu report says more sellers use marketplace in Australia

Temu has published its Small Business Insights Report 2026, based on a survey of more than 150 sellers across six European markets.

The report found that 75% of respondents viewed Temu as either an important additional sales channel or their primary one. Half said they had increased production or operational capacity, hired additional staff, or both after joining the marketplace, while 34% said they had expanded into new international markets.

More than 65% of sellers said they valued the personal support available to merchants on the platform. The report also found that 43% had been trading for more than a decade before joining, suggesting that established businesses, as well as newer entrants, are using online marketplaces to add another route to customers.

The study also drew on more than 100 conversations with trade associations, chambers of commerce, small business groups and start-up networks across Europe. It covered sellers in Germany, France, Spain, Italy, Poland and the UK.

Although the seller survey was conducted in Europe, Temu linked the findings to Australia, where small businesses account for 97% of all businesses. It said Australian merchants have increasingly adopted the platform since the launch of its Local Seller Program in March 2025.

The expansion comes as online shopping continues to grow in Australia. Online spending reached AUD $82.6 billion in 2025, up 14% year on year, according to figures cited by Temu.

Australian sellers

Temu highlighted two Australian merchants as examples of how local businesses are using the platform alongside existing channels rather than replacing them.

Your Discount Chemist, a New South Wales-based pharmacy retailer with 13 stores and more than 250 employees, joined Temu as an additional online sales outlet alongside its physical shop network. In its first eight months on the marketplace, the business recorded more than 4,800 orders, and Temu is now among its top three online channels by sales volume.

Powertrain Sports, a Melbourne-based fitness retailer, also added the marketplace to its existing online operations. It received its first order within a day of listing products, with the initial sale involving adjustable dumbbells priced at more than AUD $600.

The figures in the report reflect broader changes in how smaller companies sell across borders and diversify their routes to market. Online marketplaces have become one option for merchants seeking to widen their customer base without relying solely on their own websites or physical stores.

For established businesses, the survey suggests marketplace selling is no longer limited to start-ups or digitally native brands. With 43% of respondents operating for more than 10 years before joining Temu, the data points to a growing willingness among older businesses to test newer forms of online distribution.

The employment and capacity figures also stand out. If sustained across a larger group of merchants, the finding that 50% increased production or operational capacity, hired staff, or both suggests that additional online sales channels can influence investment decisions in small businesses, particularly when demand extends beyond domestic markets.

Cross-border trade remains another notable part of the picture. More than a third of surveyed sellers said they had expanded into new international markets, underlining the role marketplaces can play in helping smaller merchants access overseas buyers without building local operations in each country.

The report does not set out the performance of all sellers on the platform, and the findings are based on a relatively limited sample of just over 150 merchants. Even so, they offer a snapshot of how businesses already using Temu describe its role in their sales mix.

In Australia, the relevance lies in the structure of the economy as much as in the rise of eCommerce. With small firms making up the vast majority of businesses, shifts in how they reach customers online can have wider implications for retail competition, employment and the spread of digital selling tools.

Temu's examples from Australia suggest local merchants are using the marketplace to complement established operations, whether shop networks or existing online channels. In both cases cited, the platform formed part of a broader sales strategy rather than serving as a standalone route to market.