In recent months, Brazil has witnessed the meteoric rise of a new star in the marketplace universe: Temu. Reports indicate that the company is already among the most trafficked platforms in the country—according to Conversion, it reached third place. But it's worth asking: based on what? Visits.
Traffic is an excellent indicator of curiosity and appetite for low prices. But it's not, by itself, synonymous with results. To understand the true extent of Temu's impact on the Brazilian market, we need to go beyond traffic and look at what really drives the sector: revenue, margin, and EBITDA.
In 2024, the business model based on direct imports suffered a severe blow. The implementation of the so-called "blouse tax"—a 20% tax on international purchases of up to US$$.50, combined with the ICMS tax—decreased the volume of these imports by 40% in the first month of its implementation. Data from the Federal Revenue Service show that, in January 2025, the number of international shipments fell by 27% compared to the same month of the previous year. The financial value of transactions also fell by 6%.
In other words: despite massive campaigns and strong price appeal, platforms dependent on international remittances are losing steam. Instead of establishing a national operation, Temu insists on growing based on a cross-border model that is already showing signs of exhaustion.
Unlike other platforms—such as Shopee, which claims that 9 out of 10 sales in the country are already made by local sellers—Temu remains anchored in a fragile tax strategy, subject to regulatory changes, and with little capacity to foster the national ecosystem. It has no physical infrastructure in the country, nor is it committed to local logistics or promoting Brazilian businesses.
The discussion, therefore, goes beyond Temu itself. The debate is about which e-commerce model Brazil needs to value. A sustainable model—with a domestic seller, job creation, and tax payments—or a model with fast turnover, tight margins, and dependence on regulatory loopholes.
It's understandable that consumers seek the lowest price. But it's the responsibility of the industry, authorities, and society as a whole to understand that price isn't everything. Traffic generates visibility. Revenue generates retention.
And without permanence, no platform truly consolidates.
