Sellers sell 30,000 orders a day! Temu grabs Amazon traffic

Is Temu a strong rival to Amazon?

There has been an endless stream of analysis and thinking about "how long can Amazon's dominance last?" In addition to AliExpress and Lazada, fast fashion e-commerce platform SHEIN and TikTok, another young heavyweight player has come online to attack Amazon.

Temu, a cross-border e-commerce platform launched by Pinduoduo , continues its strategy of attacking lower-end markets abroad. By connecting the domestic low-end supply chain with consumers in the US market who have consumption downgrade demands, it has been making great strides since its launch in September last year . It once became the most downloaded mobile application in the United States , driving many American consumers crazy.

"Temu's low prices make you feel like you can buy as much as you want. Download the Temu app and shop like a billionaire"... Not only Americans cannot escape the " low price law " , but Temu's ambitions are not limited to the US market.

Temu is trying to conquer more markets with its low-price killer, and will soon be launched in Europe, Australia, New Zealand and other markets. Temu has grown rapidly amid numerous doubts, and has been online for about 6 months. More and more Amazon sellers are feeling the crisis, especially as the Amazon platform becomes more and more competitive, and sellers who mainly sell low-priced products are trembling.

"Did Temu steal my Amazon orders?" Amazon sellers who once looked down on Temu now join the platform, complaining about its low prices. The platform has achieved a rapid sales growth , with some sellers selling 20,000 to 30,000 orders a day. On recruitment websites, cross-border e-commerce companies are gradually increasing their demand for Temu positions.

With strong capital support, the young Temu will create more miracles in the future. In the end, can Temu challenge Amazon's dominance in cross-border e-commerce? Many industry insiders believe that Temu is a copy of Wish, so the answer is obvious.

Sellers sell 30,000 orders a day! More Amazon sellers do Temu

In December 2022, Weibo blogger "Director's Cross-border E-commerce Diary" (hereinafter referred to as Director) officially put products on sale on the Temu platform, seizing the bonus period of the new platform. As one of the early pioneers, Director now has considerable performance on the platform, with daily sales of about 400-500 orders.

" We really need to pay attention to Temu. The performance of this platform will increase dozens of times in the future. I will continue to make products specifically for this platform. It is possible to achieve 10,000 orders a day in the next one or two years. " In the opinion of the director who is a trade seller, this platform is not only suitable for factory sellers, but also has many opportunities for many trade sellers. Currently, Temu is still in a real bonus period . For sellers, the new platform has the opportunity to grow and increase in volume. Moreover, the company behind Temu is rich, and its investment and attention to this platform are obvious to all. With the support of many favorable factors, Temu's future development will definitely get faster and faster.

Next, the director will increase investment in the Temu platform, open more stores, and launch more products. It is understood that the director has implemented a multi-platform operation strategy. Since officially entering Amazon in 2021, he has successively tried other platforms such as Walmart, Temu, and Douyin. It is worth mentioning that among all platforms, Temu ranks second only to Amazon in terms of investment share, which shows how much the director values ​​Temu.

The director is just one of many Amazon sellers who also sell Temu. From watching to taking the plunge, since 2023, more and more Amazon sellers have been selling Temu.

The reason is simple. On the one hand, they do not want to miss the bonus period of the new platform. On the other hand, it can be said that "they have suffered from Amazon for a long time." Amazon sellers who lack a sense of security firmly adhere to the principle that multiple platforms mean multiple channels for dispersing risks.

Temu's official data shows that as of February 23, 2023 , the Temu APP has more than 40 million new downloads , with the fastest growth rate of new users. It has topped the App Store shopping list for 69 days and the Google Play shopping list for 114 days. The daily sales of a single product exceed 10,000 pieces, and the daily sales of a single store exceed 30,000 pieces.

The TV advertisement titled " 2023 North American Super Bowl (National Football League)" successfully reached 100 million users. "Download the Temu app and shop like a billionaire..." Temu's magical and brainwashing slogan is deeply engraved in the minds of countless viewers. On the day of the Super Bowl, a steady stream of Americans flocked to Temu's official website. Temu's app downloads surged by 45% and daily active users surged by 20%. It is reported that the advertising fee for every 30 seconds of advertising in the "Super Bowl" is as high as 7 million US dollars. Temu, which is rich in wealth, directly invested in two advertising time slots. Countless cross-border people have seen Pinduoduo's attention to this platform and their confidence has been greatly boosted.

According to data released by SensorTower, from February to now, Temu has 13.4 million monthly active users, while Target, one of the four largest retailers in the United States, has only 9.2 million monthly active users. This means that Temu is becoming more and more attractive to consumers.

"As long as the platform has users, sellers will have orders, and Temu has a future." Temu has taken over Walmart, independent websites, etc., and has become the latest hot spot pursued by Amazon sellers. Especially in recent years, as Amazon has become more and more competitive and more demanding of sellers, many people hope that a new platform can rise and end the situation where Amazon is the only one. Obviously, Temu is the latest object of these Amazon sellers' hopes.

" We started selling on Amazon in 2016. At that time , we could make money by simply listing a product . Now, if one out of ten sellers can make money on Amazon, it's good enough . " Several Amazon sellers said that if someone wants to join Amazon, they will generally try to dissuade them, otherwise these people will end up like this ↓↓↓

A novice enters the market - market research - decides on the product - places an order with a factory - prepares copywriting, pictures, A+ - delivers the goods - slacks off for a week - puts the product on the shelf, prepares to advertise - automatic plus manual - conversion rate is very poor - clears the goods - abandons them - buys a Niu electric scooter - registers as a rider - wears the yellow robe - finally, finally pays off the payment...

The above statement may be exaggerated, but what is certain is that as Amazon becomes more and more mature, the opportunities for new sellers will only become fewer and fewer every year. In addition, the increasingly demanding features of the platform are also an important factor that makes sellers disappointed in the platform and lose confidence.

"In recent years, Amazon has only been cutting leeks. The service to buyers has become better and better, but the sellers have been exploited more and more. Competition among multiple platforms is a good thing for sellers, which also means that the platforms will release platform dividends in order to attract sellers." An industry insider believes that there is no doubt that Amazon can still make money, but Amazon's current trend is moving closer to Taobao. Traffic is getting more and more expensive, sellers are getting more and more competitive, and profits are getting thinner and thinner.

After that, the traffic on the Amazon platform will be more polarized, with a clear distinction between novice sellers and top sellers. In addition, the Amazon model is relatively old and has not done well in terms of updates and iterations. TikTok, Temu, and the independent station model are all newer than Amazon and have come from behind. It is not certain that Amazon will be replaced one day. Sellers with conditions do not need to stick to Amazon. They can try different platforms and then choose the one that suits them best.

Amazon has repeatedly increased its operating costs, and many clothing sellers who are struggling to survive are planning to flee Amazon.

One of the clothing sellers said, "There are few platforms that are more greedy than Amazon. In 2019, the delivery fee for an ordinary T-shirt was only $3.5, and it rose to $4.3 in 2022. Some time ago, the FBA delivery fee soared again, and the delivery fee for a T-shirt soared directly to $6. The general selling price of T-shirts is around $20. Excluding product costs, advertising costs, and first-leg logistics costs, the products that already have meager profits are hovering on the edge of losing money. Switching to Temu is imperative..."

Coincidentally, another clothing seller also had the idea of ​​going to Temu. Amazon's unlimited exploitation of merchants will definitely lead to an increase in product prices. He believes that some clothes can be bought on the Tem platform with high delivery fees alone. In addition, with a click of 1-2 US dollars, clothing merchants often choose to raise prices to protect costs. However, clothing products are not particularly urgent consumer demand. For the same product, consumers spend a few dollars on Temu, SHEIN and other platforms and wait for 10 days, or buy it on Amazon at a price several times higher and wait for 3 days. Which is more cost-effective? I believe that many consumers will choose the former. If Amazon continues to exploit sellers, it will only make consumers more inclined to shop on Temu and SHEIN platforms. In this way, clothing sellers will also flow to Temu and SHEIN platforms.

Can Temu shake Amazon's dominance in e-commerce platforms?

Temu’s expansion has indeed affected Amazon, but to what extent? Can Temu, which is still running wild, shake Amazon’s dominance in the e-commerce platform?

"I'm optimistic about Temu. It's really ruthless. It's ruthless to suppliers, service providers, and its own employees. It seems that the employees have to work overtime all year round. Some even work on Chinese New Year's Day. I believe that many sellers on this platform have received a series of life-threatening calls from the staff in the middle of the night. With such an energetic platform, why worry about traffic? Buyers?" An industry insider said that Temu is now like a chicken with blood injected, full of energy.

Like the director, many Temu sellers believe that this platform has unlimited potential. "It is clear that Duoduo Cross-border will develop better and better in the future, and even be comparable to Amazon in the North American market." In the eyes of these sellers, although they all say that low prices have no future, it is impossible to be absolutely sure whether the mechanism for the long-term operation of the platform is low prices or quality, because different platforms have different operating strategies and crowd portraits. When Pinduoduo first went online in China, there were also a lot of people who predicted its decline, but now it is still thriving. Temu has the same mechanism as Pinduoduo, which is to focus on the sinking market. All sellers need to do is to choose the right platform based on their product positioning and find customers that suit them.

They generally believe that this platform has two important conditions for success. Temu mainly faces competition from two aspects: one is the competition between Chinese manufacturing and manufacturing elsewhere; the other is the competition between cross-border e-commerce platforms; China's manufacturing costs are globally competitive, and Pinduoduo has accumulated a large number of suppliers in China, which has laid a good foundation for Temu's overseas expansion. In addition, the company behind Temu is well-funded and very competitive among Chinese cross-border e-commerce platforms. By analogy, the possibility of success in overseas expansion is also very high.

In addition, Temu has also successfully solved the problem of acquiring customers. Backed by China's vast manufacturing resources, Temu has no worries about lack of sellers. After all, if you haven't tried it, you will think you will be lucky, but without buyers, the platform will die. Obviously, Temu has successfully captured the minds of overseas consumers. It is human nature to get something for free. Low prices have been tried and tested, popular in China, and still useful when expanding to North America :

I didn’t use Pinduoduo before, but now it’s really popular.

This poor guy loves Temu the most and can’t live without it. It’s really nice to buy small things with it.

Buying mosquito screens on Temu is half the price of offline stores, and the quality and service are also good.

The price of buying 10 pieces on Temu is about the same as buying one piece on Amazon, so it’s cost-effective to just throw them away after use.

…

One American consumer said in detail that buying car supplies on Temu is much more cost-effective than on Amazon, and shipping is free. He is about to delete the Amazon app. If Temu's quality, service, and categories are more comprehensive, he will transfer all his daily consumption to this platform in the future.

The pessimistic nature of the overseas economic situation also provides fertile soil for Temu's development.

The latest report released by the Federal Reserve Bank of New York shows that in the fourth quarter of last year, U.S. household debt increased by $394 billion, the largest quarterly increase in 20 years, bringing total household debt to a record high of $16.9 trillion (about 115 trillion yuan). In addition, U.S. consumer credit card debt soared to nearly $1 trillion (about 6.8 trillion yuan) in the fourth quarter of last year, breaking the pre-epidemic record.

In 2023, the overseas situation is still unclear. Figures from US ports show that the consumption power of the American people is declining. According to port data released by the Port of Long Beach, the port's import volume in January fell 32.3% year-on-year to 263,000 TEUs. The import volume of the Port of Los Angeles, another major port in the United States, also fell 13% year-on-year.

More people are penniless, which means that the phenomenon of consumption downgrade will not stop in the short term. "In the past, many people thought that although Pinduoduo's prices were low, the quality was not good, and it was a thing that only poor people would use. Now Americans have also become obsessed with Pinduoduo. In fact, this phenomenon is somewhat consistent with the fact that our foreign trade has not been very prosperous during this period. This year, many people have paid attention to the decline in foreign trade orders. In fact, the orders have not been lost to Vietnam, India and other countries, but the external demand has declined sharply. This has also been confirmed by the decline in orders from Vietnam. There is not much demand overseas. The world economy is in recession, and foreigners have no money. They need to be frugal."

“The platform that can compete with Amazon has not yet appeared!”

In the eyes of some other people, the platform that can compete with Amazon has not yet appeared! It is certain that Temu will grab a certain market share from Amazon, which is especially evident in the cheap daily necessities. However, Amazon will still be the world's largest cross-border e-commerce platform in the future. If consumers want to buy relatively high-quality branded products, the first thing they think of is still the Amazon platform.

Amazon has a deep consumer base and has been the dominant force in cross-border e-commerce for many years. No one can break this position for the time being. A piece of data also supports this statement. According to the 2022 cross-border e-commerce rankings, Amazon ranks first with a monthly visit volume of 5.2 billion in the global market, far exceeding the second place. New platforms continue to emerge, and in the relatively stock market, they will snatch a certain amount of traffic from Amazon, but they cannot shake Amazon's foundation.

From the seller's perspective, some cross-border sellers have come forward to say that they have sold products on multiple platforms including Doudian, Temu, Taobao, Pinduoduo, Amazon, and Kuaituantuan. Although each platform has many complaints, such as Amazon cutting storage capacity and restricting shipments every day, and Temu urging people to replenish stock every day, after comparing so many platforms, it was found that only Amazon was the least troublesome, and the labor efficiency and output of other stores were very low, so Amazon still had the highest profit.

“The profit from one order on Amazon is equal to the profit from 100-500 orders on Pinduoduo. No matter how large the order is, it is nothing compared to the profit”, “Temu’s 2.7 yuan order has been approved. I calculated that I need to place 10 orders to earn a cup of Mixue Bingcheng…” What these two sellers said is actually not an exaggeration. On the Temu platform, it is common to see cases where the cost of the product is 7.5 yuan and the shipping price is only 8 yuan or even lower.

Will the low-price strategy that made Temu so popular continue to work overseas? Many industry insiders also have doubts about this. Weibo blogger "Factory Manager in the Wind" said that Temu's strategy is not new. As we all know, SHEIN, Wish and other platforms are all low-price models. The competition between platforms is very fierce. Temu's entry has made the low-price market more competitive. However, these companies combined cannot beat Amazon, because on low-price platforms, bad money drives out good money, and it is difficult to retain high-quality merchants. Amazon's model is the survival of the fittest. As long as you have high-quality products, continue to operate in compliance, and don't mess around, you can basically survive. You get what you pay for. This principle will not change even abroad.

Some industry insiders believe that Temu's low prices are based on unlimited exploitation of sellers and the platform's massive subsidies. They fine merchants anytime and anywhere and fleece them. However, this goes against the standards of a good platform. A good platform needs to establish fair rules to protect not only the interests of consumers but also the interests of merchants. Pinduoduo agrees to refunds in seconds regardless of whether the reason is reasonable or not. The lower the merchant's offer, the more popular the platform is, which seriously damages the interests of merchants. "Temu is not qualified to be compared with Amazon. At present, it is just a copy of the Wish platform. However, the once glorious Wish is now just struggling to survive. Temu will not make much waves in the future..."

The comparison and discussion between Temu and Amazon is still going on. Whether it is the voice of affirmation or the voice of doubt, it actually reflects the different understandings of cross-border trade among different types of sellers. Amazon is the world's largest e-commerce platform, but it does not mean that Amazon is suitable for all sellers to make money. Temu is controversial, but it has also made a large number of sellers realize their dream of explosive sales. It is certain that Amazon has always been in a monopoly situation, which is not good for sellers. If the rise of Temu can bring more benefits and competitiveness to Chinese sellers, then everyone will applaud. However, a platform that is not friendly to sellers will only be gradually abandoned by sellers . From this point of view, the future of Temu is still unclear.