As you know, and as I have previously analyzed, the era of ordering products from abroad effectively ended when the €30 customs exemption limit was completely removed. However, the Chinese e-commerce giant Temu has now incorporated in Türkiye under the name WhaleCo, effectively reopening the door for international shopping.
In summary, what is changing?
The era of "individual imports", which ended with the complete removal of the €30 customs exemption in Türkiye, has returned to a "commercial import" model through WhaleCo, a company established by Temu. Now, your orders enter the country not as individual cargo packages, but as a bulk commercial shipment registered under the name WhaleCo. They are then distributed to individual customers. This new model eliminates the €30 limit and determines taxation according to the product's HS code (Customs Tariff Code) instead of a fixed rate. However, this logistical maneuver is sparking a new debate within the sector regarding "sustainability" due to increased operational costs, customs brokerage processes, and return bureaucracy.
How Does Temu Manage Deliveries?
Temu, operating as WhaleCo, imports its customers' orders in bulk. Previously, when you ordered from abroad, the cargo company performed an "individual import" on your behalf. This procedure is known as a "simplified customs declaration" (a faster, less bureaucratic process for low-value personal goods). Under this system, you could bring non-commercial products worth up to €30 into the country by simply paying the tax.
After the €30 limit was revoked, importing goods from abroad meant being subject to long and expensive commercial import procedures. In its new strategy, Temu uses WhaleCo to carry out bulk commercial imports for individual customers. These products are brought into the country as a commercial shipment and are then distributed to individual users via local courier services.
Local Warehouses
Currently, the company does not sell from local stock (warehouses established within Türkiye). However, as they scale their Turkish operations, they may decide to keep inventory in the country for their best-selling items.
Additionally, the company lists local Turkish sellers on its platform. This means products purchased from these local vendors are shipped directly to you from within Türkiye.
The €30 Limit is Gone
When shopping on Temu, the minimum basket limit is now 580 TL. You will not be able to place an order below this amount.
Since these purchases are now processed as commercial imports, the previous €30 individual limit no longer applies. As long as the products comply with commercial import regulations and quantity limits, there is no specific upper spending cap to worry about.
Limited Product Range
Temu does not currently offer its entire product catalog to the Turkish market. For instance, there are significant hurdles in importing battery-powered or electronic goods. Consequently, the variety of such items is limited at this stage, and many of those available are offered through local sellers.
Taxation
There is no longer a fixed tax rate for products coming from China. While we had the right to individual imports, this rate was fixed at 60%. However, because Temu (WhaleCo) now acts as an "Official Importer" performing commercial imports, tax rates are determined by the HS Code.
HS Code (Harmonized System Code): An internationally standardized 12-digit numerical method of classifying traded products. Tax categories are determined based on these codes.
Therefore, Temu does not pay the same tax rate for every item. For example, if a container holds two different orders for two different customers with different HS codes, one might incur a 5% tax while the other faces a 20% tax.
Is This a Sustainable Strategy?
It is difficult to give a definitive answer, but generally speaking, it appears to be sustainable. However, there are several reasons why it might face challenges.
Import Costs
Importing is a costly process. To break down the primary expenses:
- Shipping: Bringing goods to Türkiye in bulk. Depending on order volume, this is relatively manageable.
- Bonded Warehouse (Antrepo): Goods must be kept in specialized customs warehouses called antrepo until taxes are paid and procedures are cleared. These facilities can be expensive, but by importing regularly and in bulk, Temu can significantly reduce these costs or eventually establish its own bonded warehouses.
- Customs Brokerage: Legally, every commercial import must involve a customs broker. Their fees are usually high for individual consumers, but Temu can save significantly through high-frequency operations.
- Domestic Distribution: This is perhaps the easiest part. Since products are packed and labeled for specific orders in China before being loaded into containers, they only need to be handed over to local partner courier companies upon arrival.
Currently, Temu does not charge consumers for these specific line items; they are bundled into the product's sale price.
Taxes
Temu does not currently request an extra tax fee beyond the product's listed price; the taxes are factored in. To remain competitive, they may be subsidizing a portion of these taxes themselves.
Competitive Price
As you can understand from the two points above, it seems that Temu is subsidizing part of the costs to sell products at competitive prices. The question that should actually be asked in this case is, "How much longer can they continue this subsidy?"
Business Model
Temu acts like a massive single seller, managing the logistics of most of its products itself. So when you buy a product through Temu, you can think of it as if it is selling the product directly to you and handling the shipping itself.
In the "Marketplace" business model, which we are familiar with and quite popular in Türkiye, sites like Trendyol are essentially intermediaries. They act as a bridge between sellers and customers. This means that when you buy a product, Trendyol doesn't ship it directly to you; the seller you bought it from ships it themselves.
The Temu model makes product logistics much easier. This is because it eliminates the need to individually collect and repackage products from thousands of vendors scattered across the country. This provides a significant advantage. Sending products in bulk is much easier with this model compared to the marketplace model.
Return Policy
Temu offers a 90-day return window. However, how commercially imported products will pass back through customs to return to China is still unclear. This involves heavy bureaucratic processes. For this model to last, the return policy must also be operationally sustainable.
Conclusion
The key to this "commercial import for individual distribution" model is order volume. The more products Temu brings in, the more it can spread costs like warehousing and brokerage across a larger customer base, making it easier to keep prices low.
Will other giants like Ali Express also come?
The answer to this question actually depends on the points I mentioned above.If other e-commerce giants like AliExpress are willing to bear these costs and procedures, they can import products through commercial import.
I also believe that order volume plays the most important role in ensuring sustainability in this model. To maintain competitive prices through commercial import, you need to bring in a high volume of products.In this case, small sellers don't have much of a chance.
However, there is an important difference between Temu and AliExpress. As we mentioned earlier, Temu acts like a single giant seller, while AliExpress is actually a marketplace like Trendyol. This means it would need to bring together products sold from different parts of China and different sellers, and then ship them to Türkiye in bulk. This would complicate things even more.
But AliExpress's biggest advantage is that both Trendyol and AliExpress are owned by Alibaba. This allows them to use a shared infrastructure. This could significantly simplify the Turkish part of the process and reduce costs.