The seller has over 10,000 orders per day, Temu continues to attack

On the Temu platform, more and more sellers are seeing an increase in orders. The traffic is fierce, but due to factors such as strict price verification, some sellers want to withdraw while others join in, and the platform is still bustling. As industry insiders say: Many sellers pack their products while complaining , who wouldn't be jealous of the traffic on the Temu platform?

Less than a year after its launch, Temu’s user base has already rivaled that of Walmart, with 17 million daily active users, an astonishing growth rate. According to payment company personnel, Temu’s data is extremely explosive. This new platform is continuing to launch an offensive.

From "clearance" to "really good", a group of sellers voted for Temu

Judging from the daily feedback from Temu sellers, it is common to see hundreds of orders a day, and veteran sellers have even higher sales levels, with some selling tens of thousands of orders a day. However, Temu is also facing increasing controversy.

Cross-border e-commerce sellers are the most sensitive to news, so they flocked to Temu after it opened for investment last year and became the first batch of merchants on the platform. However, after a short trial period, some sellers began to withdraw, mainly because buyers set strict prices.

For example, the seller's original declared price was 8 yuan, and the platform recommended an adjusted declared price of 5.65 yuan. Trade sellers purchase goods from suppliers, and Temu cuts the supply price to close to the purchase price, so the sellers back out of profit. In addition, there are many feedbacks about inconsistent quality inspection standards.

Compared with platforms like Amazon that can set their own prices, sellers do not care about the meager profits earned by supplying Temu at low prices, and mostly regard it as a clearance channel. However, a large number of merchants have still tasted the sweetness.

A big seller on Amazon said: " We now have 18,000 orders a day at Temu , with an overall gross profit margin of 30%. Compared to Amazon, we are very asset-light , and our inventory turnover rate is very high . "

Another foreign trade merchant said that he originally intended to clear out his inventory through Temu , but he found that it was quite good. " I am still cautiously optimistic about TEMU. Previously, due to the lack of clearance channels, 1688 was really slow to sell. TEMU gave us a big surprise in terms of clearance speed . A top with a labor cost of 6 yuan can be priced at 24 yuan for us, because they also look at the fabric. A simple pair of pocketless cross-waist yoga pants can also be priced at 40 yuan by TEMU, and it sells well. "

Duoduo sellers are more adapted to Temu . One seller said that a Pinduoduo seller was very optimistic about Temu and started from scratch, integrating resources in Yiwu to build a team to explore the platform. The product sold more than 1,000 orders within two months of being launched, and is currently aiming for 5,000 orders. He feels that there will be a lot of growth in the future.

The controversy over Temu is rampant, but the platform is still bustling with people. As an industry insider said: Many sellers pack their products while complaining , and who wouldn’t be jealous of the traffic on the Temu platform?

Temu's growth rate is not surprising. "Price is a powerful weapon. Pinduoduo in China did this and rose rapidly. Coupled with Pinduoduo's recommendation algorithm, it will definitely cause a fierce competition." A seller said , "I heard from a friend who works in payment that Temu's data is super explosive, and it's scary to see it. "

The number of sellers on the platform has increased rapidly, and the overall order volume on the platform has also increased sharply. Since April, sellers on the Temu platform have begun to worry about the difficulty of shipping. After that, it has become a routine operation to stay in front of the computer in the early hours of the morning to grab positions.

In mid-June, Temu began to urgently recruit recruitment agencies, labor service companies and human resource outsourcing service providers, requiring them to recommend personnel to work in warehouses around Guangzhou (Foshan, Zhaoqing, Qingyuan), with a target of tens of thousands of people to be recruited. The company also stated that "the more the better, and it would be best if we could charter a car to come here. The demand is huge."

Temu's daily active users reach 17 million , and its user base is comparable to Walmart's

After nearly a year of being online, Temu's global search popularity has continued to rise and has not yet reached its peak. During this year's Super Bowl in the United States, Temu spent a huge amount of money to launch its first advertisement, and since then it has become famous, with downloads and daily active users skyrocketing overnight. Combined with the "low price temptation" and "cut a lot" new user expansion model, its popularity continues to rise. A seller posted a product promotion video, and the comments below all expressed that they would go to Temu to buy it.

According to data.ai's monitoring data, as of July 13, 2023, Temu has been ranked first in the ranking of the most downloaded shopping apps on iOS and Google Play in the US market , both in the past week and in the last 30 days, followed by SHEIN, Amazon, and Walmart.

As one thing grows, another shrinks, and the total consumer demand in the market is limited.

According to a survey by statistics agency GWS, Amazon's UK site has lost more than 1 million mobile users this year, and the US site has also seen a similar loss. Since April, Amazon's user base has begun to decline sharply, from 54 million daily active users to 46 million in just a few months, a loss of nearly 8 million users. The long-established platform eBay is in even greater trouble.

In contrast, Temu 's daily active users in the United States have continued to rise, with nearly 10 million new daily active users since the beginning of this year . Currently, its user base is comparable to Walmart, with daily active users reaching 17 million. Domestic research institutions believe that Temu is expected to become Pinduoduo's second growth curve.

Walmart has been planning its e-commerce business for many years, but was hesitant in expanding its business in the early stage, and eventually the gap with Amazon widened. Now there is another Temu , which has surpassed it in just half a year, and its position in the e-commerce market is worrying.

In fact , Temu's aggressive overseas expansion not only threatens the sales of low-priced goods on platforms such as Amazon, but also eats up the market of independent site sellers.

In the fierce competition between SHEIN , Temu and other platforms, the most vulnerable may be independent website sellers. "Since last year, the traffic cost of independent websites has exploded and has become much more expensive. The purpose of running an independent website is to see who can get the cheapest and fastest traffic. In the current traffic environment, their living space has been greatly compressed." said a seller.

One seller pointed out: "The full-hosting model eliminates the middleman link and directly connects with the factory for supply. It relies on the low-price model and a large number of SKUs to win by volume. " This is one of the senses of crisis among sellers in the industry. In addition, the industry is also worried that the price frenzy set off by Temu will deepen the overseas market's impression of cheap Chinese products. "If the low average order value of China's overseas platforms really becomes a stereotype, it will be really difficult for brands to go overseas in the future. "

Full trusteeship sweeps across cross-border e-commerce, and all platforms are out of business

Full hosting is still the most popular way to go global this year. If you can't beat them, join them. Many sellers are trying it now, and they are not just betting on one company. From the popular Temu to the latecomer TikTok Shop, all of them have settled in.

The " Four Little Dragons " of China's e-commerce overseas expansion - Shein , Temu, AliExpress and TikTok Shop - have successively launched the full hosting model , followed by Lazada. This week , Shopee revealed that at the 2023 Seller Incentive Conference to be held at the end of July, Shopee will officially announce the full hosting plan , and the details of the plan will be announced by senior management in person, adding another general to the full hosting model.

Not only Temu , but also platforms such as TikTok Shop have also reported that sellers have seen a surge in orders after turning on full hosting. For example, after Henan Maocheng joined the latter's full hosting, the merchant generated sales the day after listing, caught up with the big promotion in the first month of cooperation, and quickly increased its sales to an average of more than 3,000 pieces per day.

TikTok Shop's cross-border e-commerce fully managed summer promotion has ended, and it has released the promotion data for the UK : during the promotion, GMV sales increased by 339%, order volume increased by 312%, and the number of moving goods increased by 518%. Categories such as clothing, shoes and bags, beauty and lifestyle, home and outdoor, and digital hardware were hot-selling.

The trend of full hosting is getting hotter and hotter. Almost all the top cross-border e-commerce platforms have entered the market and provided strong support, which will inevitably change the original pattern of the cross-border e-commerce industry . Join or fight? Cross-border sellers are at a crossroads.