Temu’s Rapid Rise Redraws the Map of Global Cross-Border Shopping

• Temu’s cross-border market share surged from under 1% in 2022 to 24%, matching Amazon globally.

• Amazon’s share has edged down as Chinese platforms gain ground.

• Shein held steady, while AliExpress and eBay lost share.

• Temu’s growth is driven by Chinese sourcing, aggressive marketing, and rapid global expansion.

• New US and EU regulations may reshape future competition.

Temu, the low-cost online marketplace backed by PDD Holdings, has rapidly reshaped the global cross-border e-commerce arena, reaching a milestone that places it alongside Amazon.com in terms of worldwide market share.

Since its debut in 2022, Temu has expanded at a remarkable pace. Its share of the global cross-border shopping market jumped from below 1 per cent at launch to 24 per cent last year, effectively matching Amazon’s position. These findings come from a survey released by the International Post Corporation (IPC), which represents 26 national postal operators across Europe, North America, and the Asia-Pacific region.

Amazon, long the dominant force in global online retail, has seen a modest decline in this specific segment. IPC data shows Amazon held a 26 per cent share of cross-border e-commerce in both 2022 and 2023, before easing to 25 per cent in 2024 and slipping further last year.

According to IPC chief executive Holger Winklbauer, the surge has been driven largely by Chinese platforms. He noted that exports linked to Chinese e-commerce — with Temu at the forefront — have grown sharply over the past three years, even as the global e-commerce supply chain begins to adjust to new customs and regulatory changes expected through 2025 and 2026.

Other Chinese-founded platforms have experienced mixed results. Fast-fashion giant Shein maintained a steady 9 per cent share in 2025, while AliExpress, owned by Alibaba Group Holding, accounted for 8 per cent, down from 9 per cent in 2024 and 12 per cent the year before, according to IPC figures.

The IPC survey, carried out in September last year, gathered responses from 30,970 consumers across 37 countries, including the United States, France, and Australia. It also highlighted the sharp decline of several legacy platforms. eBay, for instance, saw its cross-border market share shrink dramatically, losing 68 per cent between 2018 and 2025. By last year, it had fallen to fifth place with just 5 per cent, compared with 17 per cent seven years earlier.

These shifts have unfolded against a complex global trade backdrop. Despite ongoing trade tensions, China posted a record trade surplus of US$1.19 trillion in 2025, supported by exports totaling US$3.77 trillion, according to official figures.

Temu’s growth has been closely tied to its deep sourcing network in China. The platform, whose parent company also operates domestic e-commerce heavyweight Pinduoduo, moved quickly into major international markets after launch. In the United States, Temu gained widespread recognition following high-visibility Super Bowl advertising campaigns in 2023 and 2024 built around its “Shop Like a Billionaire” tagline.

The rapid user growth spurred a competitive response from Amazon, which introduced its Amazon Haul service in 2024, offering products priced at US$20 or less. That same year, research from Bernstein Research indicated that Temu had surpassed Amazon in monthly active users.

However, the expansion of low-cost Chinese e-commerce has drawn increasing scrutiny from regulators in the US and Europe. In 2025, the US government removed the long-standing “de minimis” exemption for commercial imports, ending duty-free treatment for packages valued under US$800. Meanwhile, the European Union is preparing to introduce a flat €3 fee on small parcels worth less than €150 shipped directly from outside the bloc, with the new charge set to take effect in July this year.

Together, these developments underscore how quickly the balance of power in global cross-border e-commerce is shifting — and how regulatory changes may shape the next phase of competition.

Graphics courtesy consumer150