The Complete Guide to Temu Seller Fees and Commissions

Before joining any marketplace, the first question every seller asks is: "What will it cost me?" On Amazon, that question is surprisingly hard to answer — between referral fees, FBA costs, storage charges, advertising spend, and various surcharges, your true cost of selling can vary wildly. On Temu, the answer is refreshingly simple.

This guide breaks down everything you need to know about Temu's fee structure, compares it directly with Amazon and eBay, and shows you exactly how much margin you can expect to keep on every sale.

Temu's Commission Structure: How It Works

Temu charges a single seller commission on every sale, calculated as a percentage of the product's selling price (excluding shipping). There are no monthly subscription fees, no mandatory fulfilment programme fees, and no listing fees. You pay commission only when you make a sale.

Commission rates vary by product category, ranging from 7% at the lowest end to 11% at the highest. Here's a breakdown of current rates across the most popular UK seller categories:

The Full Cost Comparison: Temu vs Amazon vs eBay

Let's look at what a typical UK seller actually pays when selling the same product across all three platforms. We'll use a real example: a £24.99 kitchen product with a £6.00 cost of goods.

Scenario: Kitchen product, £24.99 RRP

In this example, the Temu seller keeps 55% of the retail price as profit, compared to 36% on Amazon and 49% on eBay. That's a 54% higher per-unit profit on Temu versus Amazon.

Hidden Costs You Won't Find on Temu

One of the most frustrating aspects of selling on Amazon is the accumulation of fees you didn't anticipate. Here are costs that exist on Amazon but simply don't exist on Temu:

• Long-term storage fees: Amazon charges £4.35 per cubic foot for inventory stored over 181 days. Temu has no equivalent because you store your own inventory
• Removal order fees: Need to get unsold inventory out of Amazon's warehouse? That's £0.50–£1.00 per unit. Not applicable on Temu
• Labelling fees: Amazon charges £0.30 per unit if they label your products for you. Temu doesn't require marketplace-specific labelling
• Returns processing fees: Amazon charges a per-unit fee for processing returns. Temu lets you handle returns through your own process
• Advertising costs: While technically optional on Amazon, PPC advertising has become essential for visibility. On Temu, organic search visibility is still achievable without any ad spend

Shipping Costs: What to Budget

Since Temu doesn't have its own fulfilment service for UK sellers, you'll need to ship orders yourself (or through a 3PL). Typical UK shipping costs for small-to-medium parcels range from £2.50 to £4.50 depending on your courier and volume.

Many sellers offer free shipping on Temu by building the shipping cost into their product price. This is a strategic choice — Temu's algorithm and shoppers both favour free shipping — but it's not mandatory. If you do charge for shipping, it's displayed separately and isn't included in the commission calculation.

Reducing shipping costs through SellerSpring

As an official Temu agency partner, SellerSpring has negotiated reduced shipping rates for our clients with several major UK carriers. Depending on your volume and parcel characteristics, this can reduce your per-unit shipping cost by 15–25% compared to standard rates — a saving that goes straight to your bottom line.

Payment Terms: When Do You Get Paid?

Temu settles seller payments on a regular cycle, typically every 14 days after order delivery confirmation. The payment is made directly to your registered business bank account. This is comparable to Amazon's fortnightly payment cycle and faster than eBay's managed payments schedule for new sellers.

There are no payment processing fees charged separately — the commission covers everything. You receive the full selling price minus the commission percentage, deposited directly.

Returns and Refunds: The Fee Impact

On Temu, returns follow a buyer-initiated process. If a customer returns a product, the commission on that sale is typically refunded to you. This is a meaningful difference from Amazon, where you may still be charged FBA fees and other costs even on returned items.

Temu's return rate for UK sellers averages around 5–8%, depending on category. This is comparable to or slightly lower than Amazon return rates, partly because Temu's lower price points mean customers have lower expectations around minor imperfections.

What About VAT?

If you're VAT-registered, Temu commissions are subject to VAT. Temu provides monthly statements that include all the information your accountant needs for VAT returns. The commission amounts shown in your seller dashboard are exclusive of VAT, so factor in the additional 20% when calculating your true commission cost if you're VAT-registered.

For sellers below the VAT threshold, the commission rates shown are your actual cost with no additional tax implications on the commission itself.

The Bottom Line

Temu's fee structure is one of the most competitive available to UK sellers. With commissions of 7–11%, no mandatory fulfilment fees, no subscription costs, and no requirement for advertising spend to achieve visibility, the total cost of selling on Temu is typically 40–60% lower than Amazon and 15–25% lower than eBay.

For sellers who already have products, inventory, and a shipping setup — particularly those already selling on other marketplaces — Temu represents a genuine opportunity to increase revenue while actually improving their overall margin profile.