Temu's Meteoric Rise Especially in Cross-Border E-commerce

27th January 2026

One of the most striking recent trends is Temu's explosive growth in cross-border online sales — that is, purchases where customers buy goods shipped from another country.

In a 2025 survey of frequent international online shoppers, Temu captured about 24% of the global cross-border e-commerce market, up from less than 1% in 2022. That puts it on par with Amazon in that segment.

This share is especially notable because Temu only launched in 2022 and has grown rapidly through discount pricing, aggressive marketing and international expansion.

Temu also has hundreds of millions of monthly active users worldwide, a sign of substantial adoption.

This rapid rise has led some observers to describe Temu as one of Amazon’s closest challengers in the global online market.

But - Amazon Still Dominates Broader E-commerce

Despite Temu’s gains in specific areas:

Amazon is still one of the largest global e-commerce platforms overall, serving hundreds of millions of customers with a massive catalogue and advanced logistics network.

Its Prime service — offering fast delivery, exclusive content and loyalty incentives — helps sustain high repeat purchase rates, a powerful competitive advantage over low-price rivals.

And critically, Temu’s 24% share relates to cross-border purchases — not total global e-commerce sales. Amazon’s overall reach across multiple categories, services and regions remains significantly larger.

Other Rising Competitors

Temu isn’t alone. Several other platforms are growing quickly:

Shein holds a stable share (~9% in cross-border ecommerce) as a major fashion-focused retailer.

Regional marketplaces like Alibaba’s platforms in China, Shopee in Southeast Asia, and TikTok Shop in social commerce are also expanding.

These don’t individually threaten Amazon’s global scale yet, but together they fragment the online retail landscape, giving shoppers more alternatives.

Challenges and Limits to Overtaking Amazon

Even with rapid growth, there are important caveats:

Different Business Models

Temu competes primarily on ultra-low prices and a high-volume, low-margin model. Amazon combines retail, logistics, digital services (like AWS and Prime), advertising and marketplace-hosting, which diversifies its revenue streams.

Service & Trust

Faster delivery, stronger customer service, and easier returns — areas where Amazon excels — are still weaker points for discount platforms like Temu.

Regulatory & Tariff Headwinds

Recent moves by the US and EU — such as ending duty exemptions for small imports — may erode some of Temu’s pricing advantage over time.

Brand Loyalty

Many consumers stick with Amazon because of Prime loyalty, integrated services and perceived reliability — factors harder for new players to replicate quickly.

So What Does the Future Look Like?

Will Temu or similar online retailers overtake Amazon in total sales soon?

Unlikely in the very near term
Amazon’s sheer scale, infrastructure and diversified revenue make it difficult for any challenger to surpass its overall global sales quickly.

But in specific segments, yes
Temu has already matched Amazon in cross-border e-commerce share in some measures.

Increasing competition is real
Chinese platforms and regional marketplaces are collectively drawing more consumer attention and share, especially where low cost or specialty offerings matter.

In short: Temu and other fast-growing platforms are serious challengers in specific niches and regions, and they may continue eating into Amazon’s market share in areas like budget shopping and cross-border purchases. But overtaking Amazon’s overall global sales would require sustained expansion across many markets and overcoming Amazon’s entrenched advantages — something that’s possible over a longer horizon, but not inevitable in the immediate future.