The UK operation of Temu increased its revenue by 171% in 2025, while the United Kingdom prepares to end one of the main advantages of low-cost e-commerce coming from China: the customs duty exemption for orders of up to £135.
Revenue at Whaleco UK, a company linked to Temu, went from US$ 63 million to US$ 171 million in the year ended in December. Profit doubled from about US$ 3 million to US$ 6 million.
The figures do not represent the total spent by British consumers on the platform. The local entity mainly records revenue for services provided to the group, including transaction support and marketing.
Estimates from Barclays and Retail Economics indicate that UK consumers spend about £4.7 billion per year on platforms such as Temu and Shein, the equivalent of approximately 5% of online sales of non-food products.
UK to end exemption of up to £135
Currently, imported goods of up to £135 do not pay customs duty in the United Kingdom, although VAT is already charged. The government decided to eliminate this advantage and intends to implement the new rules by October 2028.
The change directly pressures the model based on shipping small packages from China, which allows platforms to reduce costs and compete aggressively on price.
Temu is already trying to reduce this dependence by incorporating British sellers and locally stored products. The strategy allows part of the orders to be fulfilled within the country itself.
The 2025 growth shows the scale achieved by Temu. The next challenge will be to maintain prices and volume when one of the structural advantages of its import model disappears.
