Last updated:
Understand the true cost of selling on Temu — from commission structures to pricing strategy — and compare fees against Amazon and TikTok Shop side by side.
Temu has disrupted ecommerce with its ultra-low pricing model, but the seller experience is very different from Amazon or eBay. Temu operates a consignment-like model where sellers provide products at wholesale prices, and Temu sets the final retail price and handles all logistics, marketing, and customer service.
This means sellers don't control their listing price, shipping costs, or advertising — Temu handles all of that. In exchange, Temu keeps the retail spread (full-managed) or charges a category commission (semi-managed), but requires significantly less operational work from the seller.
The biggest advantage of Temu is volume. Many Temu sellers ship thousands of units per day. The biggest disadvantage is margin control — you cannot set your own retail price, and Temu may aggressively discount your products to drive sales.
Temu's fee structure is simpler than most platforms — but the costs are higher:
| Fee Type | Rate | Notes |
|---|---|---|
| Commission (semi-managed) | 8% – 15% | Category-based % of the selling price; full-managed has no explicit commission (Temu keeps the retail spread) |
| Listing Fees | $0 | No upfront listing fees |
| Monthly Subscription | $0 | No monthly seller fees |
| Fulfillment / Shipping | Covered by Temu | Temu handles all logistics via its warehouse model |
| Advertising / Marketing | Covered by Temu | Temu handles all promotions; sellers don't run ads |
| Returns / Refunds | Seller covers product cost | You lose the COGS on returned items |
| Warehousing | Covered by Temu | Ship bulk to Temu warehouses; they handle storage |
Source: 2026 third-party Temu seller fee breakdowns — OneCart and AMZ Prep (semi-managed 8–15% by category; consignment/full-managed 2–5% effective, no explicit commission). Temu publishes no public rate card — rates vary by market and category, always verify against your merchant agreement. Note on sourcing: OneCart is the publisher behind the widely repeated "$39/month Temu seller plan" claim, which we could not confirm from Temu's own seller documentation (Temu's seller centre is login-gated and publishes no public fee schedule). Treat third-party figures as as-reported, not authoritative. Retrieved 2026-09-22.
The profit calculation for Temu is fundamentally different from other platforms because you sell to Temu, not to the end customer:
Let's calculate profit for a kitchen gadget sold through Temu:
| Estimated Retail Price (set by Temu) | $18.99 |
| Wholesale Price (what Temu pays you) | $6.00 |
| − COGS (manufacturing) | − $2.50 |
| − Packaging | − $0.40 |
| − Inbound Shipping (bulk, per unit) | − $0.30 |
| − Returns Reserve (7%) | − $0.42 |
| = Net Profit per Unit | $2.38 (39.7% wholesale margin) |
At first glance, a 39.7% margin on your wholesale price looks good. But compare this to the retail price: Temu sells the item for $18.99, and your profit is only $2.38 — that's just 12.5% of the retail price. On Amazon, a $18.99 product might net you $4-6 (21-32% of retail).
To pick the right platform, you need a direct comparison. Here's how the three major platforms stack up for a $30 product with $8 COGS:
| Metric | Temu | Amazon | TikTok Shop |
|---|---|---|---|
| Retail Price | $30 | $30 | $30 |
| Platform Fee | ~$15 (50% margin split) | ~$4.50 (15% referral) | ~$1.50 (5% commission) |
| Fulfillment Cost | $0 (Temu handles) | ~$5.50 (FBA) | ~$4.00 |
| Advertising / Affiliates | $0 (Temu handles) | ~$4.00 (PPC) | ~$6.00 (affiliates + ads) |
| Returns Reserve | ~$0.60 | ~$1.50 | ~$1.50 |
| COGS | $8.00 | $8.00 | $8.00 |
| Net Profit | $6.40 | $6.50 | $9.00 |
| Net Margin (of retail) | 21.3% | 21.7% | 30.0% |
Key takeaways:
For the complete platform comparison, read our Amazon vs TikTok Shop Strategy Guide.
Data sources: The official Amazon US fee schedule (Amazon Seller Central) and the Amazon Logistics (FBA) fee rate pages.
Calculation logic: Calculated from Amazon's published FBA fee rules for storage, fulfillment and return processing. Actual fees vary with product dimensions, weight and season.
Reference links:
• Amazon FBA fee schedule
• Amazon FBA fulfillment fee rates
Disclaimer: These results are for reference only; the actual fees charged in Amazon Seller Central govern.
See our fee cards & rate comparison boards on Pinterest.