It has now been about a month since many South African Temu shoppers began feeling the full effect of a major pricing shift because of VAT and import included upfront at checkout.
What used to feel like a cheaper purchase at first glance has now become a more honest but more painful total.
Previously, many customers would shop based on the attractive price displayed in the cart. The customs or tax payment would often arrive later through the courier after dispatch. That system encouraged impulse buying because the shopper reached checkout looking only at the lower figure. Temu’s new process now includes VAT and import duties directly at checkout, removing the later surprise payment and making the final cost clearer from the beginning.
The change may be fairer, but it changes the psychology of buying. A customer who once saw an item as a bargain may now compare the full Temu price with Mr Price, Pep, Takealot, TFG, or other local retailers. The overseas platform no longer benefits from the same “cheap first, tax later” emotional advantage.
This comes after South Africa moved to close the low value import gap that benefited platforms like Temu and Shein. Reports showed that parcels under R500 had previously attracted lighter treatment, while local retailers argued this created unfair competition. SARS changes from 2024 placed more pressure on low value imports, especially clothing, with VAT and proper duties becoming part of the cost.
Local retailers are likely to be the biggest beneficiaries. Reuters reported that Mr Price and TFG welcomed the closing of the loophole, saying it helped level the playing field. A later Reuters report also noted that the end of the loophole was starting to have an impact, with signs of consumer backlash over higher prices on foreign platforms and renewed confidence among local retailers.
For Temu, the challenge is not only tax compliance. It is perception. Once the full cost is shown instantly, the customer begins asking: “Is this still cheaper than buying locally?” That question weakens the impulse buying culture that helped drive the platform’s growth.
For consumers, the effect is mixed. They lose the excitement of very low checkout prices, but they gain transparency. They now know the real cost before paying. This can reduce frustration, courier payment confusion, and possible scam risks linked to fake customs payment messages.
The lesson for regulators is clear. South Africa must not wait until consumers are already agitated before tightening rules. E-commerce has moved faster than regulation, and government must be able to foresee how global platforms affect local businesses, tax collection, jobs, and consumer expectations. Regulation should be proactive, clear, and communicated early, not introduced after shoppers have already built habits around a pricing model that was never showing the full reality.
In the end, Temu’s new checkout system does not simply raise prices. It exposes the real price. And once reality appears at checkout, the battle between foreign platforms and local retailers becomes more honest.
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