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Temu sellers revolt against fines and withheld pay


Online shopping site Temu has faced tough questions before about its business practices. Now it has a new problem: a backlash from independent merchants based in China who sell their products on the wildly popular rival to Amazon.

Two suppliers, who declined to be named for fear of retribution, separately told CNN that they were there to complain about what they called “disproportionately high” fines charged by Temu for poor customer service. One of them, who sells household goods, additionally claimed that the platform had also allegedly frozen about two million yuan ($276,000) in completed sales that she wanted to withdraw to pay salaries and other costs of running her business. Abe Yousef, senior insights analyst at Sensor Tower, told CNN that in the short run, Temu is likely to be more concerned about marketing itself to consumers than the margins it makes, a strategy that has worked well for Amazon( AMZN) and Wayfair ( W).

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