What Is Temu’s Y2 Model? A 2025 Guide to Its Tariff - Dodging Strategy

In the dynamic world of cross - border e - commerce, staying ahead of the curve is crucial for both platforms and sellers. One such innovation that has been making waves in 2025 is Temu's Y2 model, which comes with its unique tariff - dodging strategy. Let's dive into what this model is all about, how it works, and how 4seller ERP can be a game - changer for sellers dealing with Temu's Y2 model, especially when it comes to handling pre - sale orders.



1. The Background of Temu's Y2 Model

Temu, a popular cross - border e - commerce platform, has been constantly evolving to adapt to various challenges in the international trade landscape. One of the significant challenges is the complex and often fluctuating tariff policies. In response, the Y2 model was introduced. This model is not just a simple adjustment but a comprehensive strategy that aims to help sellers navigate the choppy waters of cross - border trade while minimizing the impact of high tariffs. 



2. How the Y2 Model Works 

2. 1. Shipping and Fulfillment Changes

  The Y2 model allows for a different approach to shipping and fulfillment. Under this model, sellers can opt for domestic direct shipping to the US market within a specified time frame. Instead of the traditional method of stocking inventory in overseas warehouses, which can be costly and risky due to tariff implications, Y2 enables sellers to ship products directly from their domestic locations.



 Sellers are required to set a 9 - working - day shipping time when editing their products. This extended shipping time, compared to some other models, gives them more leeway in handling orders and managing their supply chains. Once the order is placed, it enters the awaiting shipment status. Sellers then need to select a suitable logistics channel, such as well - known providers like Yanwen or YunExpress, through the platform's order management system. After that, they print the Call - face sheet and attach it to the package, and the freight forwarder takes care of the initial leg of the transportation. 



2. 2. Store Isolation and Creation

  To further manage risks and take advantage of the Y2 model, Temu has introduced a store isolation strategy. For sellers looking to fully embrace the Y2 model, it is advisable to open new stores dedicated to this model. Through the  (entity management → create new store) option, sellers can set up independent Y2 stores. Currently, one business entity can open up to 3 semi - consignment stores (previously limited to 1), while the limit for full - consignment stores remains at 1. This separation helps in clearly differentiating and managing products sold under the Y2 model, reducing the chances of confusion and ensuring a smoother operation. 



2. 3. Product Eligibility and Labeling

  Only certain products are eligible for the Y2 model. When a product meets the criteria and is set to be sold under the Y2 model, it will be marked with a special identifier on the platform. This not only helps in differentiating these products but also indicates to customers that they are part of a unique shipping and fulfillment system. Sellers need to ensure that their products comply with the platform's requirements for the Y2 model in terms of quality, shipping time commitments, and other relevant factors. 



3. The Tariff - Dodging Aspect

  One of the main attractions of the Y2 model is its potential to dodge high tariffs. By shipping directly from the domestic market, sellers can avoid some of the complex tariff calculations that come with having inventory in overseas warehouses. In the past, products stored in overseas warehouses were often subject to various tariffs based on their origin, value, and other factors. With the Y2 model, the direct - from - domestic - market approach can simplify the tariff assessment process. Additionally, since the model is still relatively new, there may be certain regulatory advantages or loopholes that sellers can take advantage of, at least in the short to medium term, until the tariff policies fully adapt to this new mode of operation. 



4. Challenges and Considerations 

4. 1. Logistics and Shipping Times

  The 14 - day overall fulfillment time, which includes the 9 - day domestic shipping time and the subsequent transit time, can be a challenge. Customers, especially those accustomed to fast - paced e - commerce delivery times, may be less patient. To mitigate this, sellers need to carefully select their logistics partners and ensure that they have a reliable system in place to track and manage the shipping process. High - margin, low - frequency products may be more suitable for this model as customers may be more willing to wait for such items. 



5. 4seller ERP: Your Partner for Temu Y2 Model 

5. 1. Pre - sale Order Management

  4seller ERP has a remarkable feature of supporting Temu Y2 pre - sale orders. With the recent introduction of the pre - sale function on Temu, which is designed to help sellers better manage inventory and predict market demand, 4seller ERP can be a great asset. Sellers can use the ERP system to track pre - sale orders from Temu, manage customer information, and ensure that the pre - sale products are prepared for shipping in a timely manner. This seamless integration between Temu and 4seller ERP ensures that pre - sale orders are not overlooked and that the seller can meet the promised delivery times. 



5. 2. Order Processing and Shipping Optimization



  4seller ERP allows for batch processing of orders, which is extremely useful when dealing with a large number of Temu Y2 orders. Sellers can print shipping labels in bulk, customize the labels according to their needs, and choose the most cost - effective shipping options. This not only saves time but also reduces the chances of errors in the order - processing and shipping stages. The system can also integrate with various logistics partners, making it easier for sellers to manage the shipping of their Y2 - model products, whether it's through the recommended logistics channels on Temu or other preferred carriers. 



6. Conclusion

  Temu's Y2 model presents an interesting opportunity for cross - border e - commerce sellers to navigate the complex world of tariffs and logistics. While it comes with its own set of challenges, with the right strategies and tools like 4seller ERP, sellers can make the most of this model. By understanding how the Y2 model works, addressing the potential challenges, and leveraging the features of 4seller ERP, sellers can enhance their competitiveness in the cross - border e - commerce space and potentially increase their profits. Whether you're a seasoned cross - border seller or just starting out, exploring the Temu Y2 model with the support of 4seller ERP could be a game - changing move for your business in 2025. 



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