Temu Rises to the Top in Four Countries in European E-Commerce
Temu continued its rapid growth in the European e-commerce market by taking the lead in four countries, according to 2025 data. According to ECDB data, the platform, which operates under China-based PDD Holdings, became the largest online retailer in Croatia, Finland, Hungary, and Slovenia. The platform also ranked among the top 10 online retailers in the majority of European countries.
Temu Ranks First in Four European Markets
In the four countries where Temu, which has been operating in Europe since 2023, holds the leading position, there is no local Amazon store or a strong local marketplace on the scale of Allegro in Poland or Bol in the Netherlands-Belgium market. Consumers in these countries being accustomed to shopping from foreign e-commerce websites is also cited as one of the factors supporting the development of cross-border retail.
ECDB states that the structure of local competition is a determining factor in a platform’s country-based ranking. Temu also ranks second in Austria, Bulgaria, Czechia, France, Greece, Norway, Portugal, and Slovakia. As a result, the platform is now among the top two online retailers in a total of 12 European markets. Its second-place ranking in France, despite the presence of Amazon and numerous local players, also stands out in the data.
Price and Product Variety Stand Out in E-Commerce
ECDB states that low prices and a wide product range play an important role in Temu’s competitiveness. The organization also notes that the announced rankings are based on 2025 data and that the impact of new customs practices may be reflected in data from subsequent periods.
The use of artificial intelligence in the e-commerce and retail sectors is also part of the company’s technology infrastructure. According to PDD Holdings’ 2025 annual report, the group uses AI-based screening systems to detect potential issues in product listings; it also continues to invest in developing its artificial intelligence technologies and big data analytics capabilities.
Temu Shifts Toward Local Warehouses in Europe
Temu is also facing the European Union’s new regulations targeting low-value e-commerce shipments arriving from China. On July 1, 2026, the EU introduced a temporary customs duty of 3 euros per product category for shipments valued at up to 150 euros. A transition to standard customs tariffs is planned for July 2028, while a transaction fee, the amount of which has not yet been determined, is also expected to be introduced no later than November 1.
The platform is meanwhile expanding its local warehouses, seller partnerships, and logistics collaborations across Europe. In the long term, the goal is for 80 percent of European orders to be shipped from local warehouses.