TEMU has firmly topped the download rankings and is doing very well overseas!

In 2022, when the economy was generally on a downward trend, Pinduoduo grew against the trend and delivered a satisfactory answer sheet, with both its revenue and profits soaring. Naturally, Pinduoduo's overseas business sector, which is given top priority, has also attracted much attention from sellers in recent times.

Less than three months after its launch, TEMU has ranked first in the App Store shopping category for two consecutive weeks. Today, TEMU is also favored by Pinduoduo, and its business has been placed before the main site. At the same time, in order to gain a firm foothold overseas, TEMU is also taking a series of measures to rectify the platform. Sellers who have already settled in should be careful.

TEMU service priority is higher than the main station

In the third quarter, Pinduoduo's revenue was 35.5 billion yuan, a 65% increase from the same period last year; its profit was 10.589 billion yuan, a 546% increase from the same period last year. Although both revenue and profit increased, the editor found that Pinduoduo did not reduce costs, but increased related investment.

Since the end of last year, Pinduoduo has been increasing its marketing investment. As of the third quarter of this year, Pinduoduo's sales and marketing expenses reached 14.05 billion yuan, an increase of about 24% from the previous quarter. In addition to customer acquisition, industry insiders speculate that the increase in marketing expenses may be related to TEMU.

As we all know, TEMU was launched in September this year. At that time, in order to attract more overseas consumers, Pinduoduo not only launched many products with a flash sale price of $0.01, but also launched activities such as deep discounts, free shipping, and referral bonuses. At the same time, TEMU was also willing to invest in advertising. In October alone, TEMU posted more than 1,600 ads on Facebook. The cost can be imagined . Subsidies and advertising expenses should affect Pinduoduo's marketing expenses.

At that time, some industry insiders also said that due to the large-scale discount activities, TEMU had to subsidize 30 US dollars for each order. However, the company's executives downplayed the impact of large-scale subsidies and emphasized that Pinduoduo's international business is currently in its infancy and will continue to optimize its services. In the future, TEMU will create greater room for imagination.

Obviously, Pinduoduo has high expectations for TEMU . It is reported that before the release of the financial report , Pinduoduo's affiliated company Shanghai Xunmeng Information Technology Co., Ltd. recently registered the trademark " TEMU Pinduoduo " , with the international classification of advertising sales, and the current trademark status is under application.

At the same time, Pinduoduo also updated the domain name of its investor relations page from "Pinduoduo" to "Pinduoduo Holdings". According to the updated page information, Pinduoduo calls itself "a cross-border business group that owns the North American e-commerce market TEMU and the leading social platform Pinduoduo. " The updated information is consistent with the previous statement by industry insiders that " at this stage, Pinduoduo 's TEMU business has a higher priority than the main site . "

TEMU lived up to expectations. In the past two weeks, TEMU has been ranked first in the App Store shopping category, followed by Amazon. From the perspective of Google Trends, TEMU has surpassed AliExpress, Wish and other platforms step by step.

During this year's Black Friday, TEMU also stole the limelight of the cross-border e-commerce industry, offering a 70% discount on its products, which was much greater than that of Amazon, SHEIN and other platforms, and was accompanied by a variety of flash sales and flash sales. After some inquiries , it was found that during this year's Black Friday, the price of TEMU products was only 30%-60% of SHEIN and 10%-20% of Amazon.

Obviously, with such a big discount, it is inevitable that consumers will rush to buy. Although TEMU 's sales performance during Black Friday has not yet been announced, many sellers have already speculated: Has it surpassed the Amazon platform?

But there are still some sellers who are not optimistic. Although TEMU has opened up the overseas market with low prices, in the long run, if TEMU wants to gain a firm foothold in the overseas market and capture long-term and stable high-quality users, it will not work just by low prices. As the saying goes, "a good blacksmith must have strong tools himself", the quality of the goods and the sellers' preference are both indispensable links, and TEMU seems to have realized this.

TEMU removes many low-rated and slow-selling products from shelves

Recently, many sellers have reported that they have received reminders from Pinduoduo officials. The content of the reminders mainly reminds sellers to pay attention to sales and rating issues. If there are any unqualified or non-compliant situations, the products will most likely be directly removed from the shelves.

In terms of sales, for slow-moving products with no sales in 14 days or sales of less than 30 pieces/90 USD in 30 days, TEMU provides two options: one is to reduce the price, and the other is to withdraw from supply; in terms of product rating, if the rating is lower than 4.5 points, and there are 1-star reviews about quality issues in the product reviews, the platform will most likely remove the product.

Today, TEMU has attracted a large number of overseas consumers through strong discounts. However, when the curiosity and novelty of ultra-low discounts fade away, consumers care not only about low prices but also the quality of products. TEMU also recognizes this and decides to remove low-scoring and unsalable products from the shelves.

In fact, TEMU has already noticed the importance of product quality in the early days of the platform . As European and American consumers have high requirements for products, TEMU has made clear regulations on quality issues, considering inferior products such as no hangtags, inconsistent sizes, damaged appearance, inconsistent materials, severe odors, and severe color differences as quality issues, requiring sellers on the platform to be fined five times the amount if quality problems occur.

From the initial high fines to the direct removal from the shelves today, it can be seen that TEMU’s punishment measures in this regard will be more stringent in the future.

In addition to rectifying the platform through the above-mentioned punishment measures, TEMU is also trying to solve the problem from the source, that is, to speed up the process of inviting high-quality sellers to settle in the platform. For compliant and high-quality brand products, TEMU will also provide additional traffic support. Some time ago, Shenzhen's top seller Huakai Yibai also publicly stated in an interview: "At present, the company has opened a small number of stores on TEMU , and will invest relevant resources in due course in the future. "

Log in to the TEMU official website and we can find that consumers can already search and view the brand's store as well as detailed data such as ratings and sales. In this way, strong and high-quality sellers and products will also get greater exposure on the platform, which is a good way for sellers to promote their brands.

Today, TEMU is in a period of rapid development. While continuously increasing its support for high-quality sellers, it is also constantly optimizing the presentation of brand sellers on the platform. In addition, Pinduoduo's own marketing investment in TEMU means that TEMU will release a steady stream of dividends for a long time . Under this circumstance, it is expected that many cross-border e-commerce sellers will join the market.

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