Temu started to catch profits?

Temu has raised prices across the board, but this does not seem to be a good thing for sellers, as most sellers said that the number of orders has dropped drastically.

Temu's front desk generally increases prices, and sellers' orders are affected

" Temu's prices have generally increased. Things that cost $0.79 are now $1.79, and things that cost $2.39 are now $5.69... " a Canadian buyer posted on a social platform, and a number of consumers in the comment section also said they had noticed this problem :

"——I put something in the shopping cart in the morning and it was $1.49 . I went out and two hours later it became $ 2.79 .

——Last time I bought a set of two for only $4.89, but now it costs $4.89 for one.

——The 30%-40% off is gone.

..."

In fact, it is not just consumers, many sellers have posted that the prices of their products in Temu stores have increased on the front desk, " the average price of a single product has increased by 2-5 US dollars . "

“——The price of my products has also increased.

——The price of the hot-selling item at the front desk suddenly increased by 50% , even though I had lowered the price .

——My product price has increased by $5, which is not a good thing.

..."

According to sellers’ feedback, this price increase is not just for specific categories, “it covers almost all categories on the platform. Temu may start to grab profits . ”

Moreover, Temu's price increase this time is not small. Judging from the US dollar prices reported by sellers, Temu's front-end price increase is generally no less than US$2, and the price of some products has more than doubled. "The original price was US$6.89, but a few days ago I suddenly found that it was already selling for US$17.98."

In fact, as early as the end of last year, more than three months after going online in North America , many buyers said that Temu had been raising prices, "The prices are getting higher and higher, what's going on?"

Generally speaking, a price increase on the platform means that sellers’ profits will increase, which should be something to be welcomed.

However, unlike other platforms, under Temu's fully managed model, sellers do not have pricing power, and profits have nothing to do with the front-end selling price . On Temu, sellers are true suppliers, and the supply price given during the price verification in Temu's backend is the seller's final selling price, that is, profit = Temu's backend supply price - cost price.

That is to say, after the seller agrees with the platform on the final price, the front-end selling price and profit will only belong to Temu. But trouble came. After the general price increase, most sellers felt that their sales dropped sharply:

“——Some products are already hard to sell, and once the price is raised, the sales will drop immediately .

——I thought sales would increase after I shipped a large amount of goods , but I didn’t expect the front desk to raise the price for me. The number of orders per day dropped from nearly 200 to 90 , a multiple drop.

——The hot-selling item is no longer as popular after the price increase.

..."

As for the price increase of Temu, some sellers believe that it is because "it can no longer burn money" and "it has been burning money for half a year to subsidize. Even if Pinduoduo earns more, it will not be enough to burn money."

Some sellers also believe that this may be the first step for it to get rid of the title of "low price and low quality".

Although the price has been raised at the front desk, Temu has not stopped lowering prices at the back desk. "If you lower prices and raise prices at the same time, you will make a profit."

Temu's price increase has affected the number of sellers' orders, and complaints have naturally arisen. "If it continues like this, I won't be able to hold on for more than a few days and I will have to go back to other platforms." Dissatisfaction has accumulated, and some sellers have announced their departure. However, no matter which platform, there will always be polarization, so some sellers feel that "Temu is really good."

Some people receive tens of thousands of orders a day, while others lose so much money that they quit the platform

In the nearly one year since it was launched, Temu has received a lot of criticism, especially from sellers.

From stocking to after-sales service, sellers go through many levels, but when they finally calculate their profits, they may find that they are actually losing money. On multiple social media platforms, it can be found that many sellers who were initially confident in this platform have already faded out of the platform.

"On Temu, when you climb over a mountain, you will find that there are many more mountains to climb. It is a happy ending to finally sell the product and see the sales data. When you finally adapt to the rules of the platform, you suddenly find that there are new rules and new restrictions. Now you have to stay up late in the morning to grab positions. It is really unnecessary to work so hard to earn such a small amount of money."

If it is just because of the platform rules, it may not be enough to make these sellers leave. "The most painful thing is the fine after the sale. I have only been working for half a year and have been fined more than 30,000 yuan."

There are many sellers who have suffered from fines. Even though Temu is now strictly controlling quality and sellers are striving to provide high-quality goods, there are still many refund issues, with various reasons, and sellers are fined for this.

In contrast to these sellers who have left the market, there are also many sellers who are making a fortune on Temu. Looking at multiple media platforms, some sellers have posted data charts showing that they receive thousands of orders a day.

One seller shared his “quick fortune” on Temu, saying, “ I started Temu for 3 months and sold tens of thousands of units . I quickly got my money back and planned to move to a new office. ”

New sellers also posted their good results, "The new store's sales exceeded 2,000 , one single product exceeded 1,000 , the store rating reached 4.7 , 106 orders last night , two new products started to sell, very happy . "

" The average customer order value is 30-100, and the daily sales are 300. Isn't this platform attractive ? "

Some sellers said they decided to enter the market after seeing their friends’ success on Temu. “I can earn 10 yuan per order, and there are thousands of orders per month. It may be a bit tiring, but I can earn a lot.”

No matter which platform, there are always successful and unsuccessful sellers, and the constant controversies in the market never seem to affect Temu's reissue.

Less than a year after its launch, Temu has expanded to 37 markets

It has to be admitted that the “low price” strategy can transcend cultural, geographical and time constraints and seems to work everywhere. Temu has followed most of the paths taken by its parent company in China, and its user base has grown rapidly in a short period of time, with downloads also increasing.

In the APP market data for the second quarter of 2023 released by Sensor Tower, Temu's downloads ranked among the top ten global popular APP downloads list for the first time , proving its popularity.

Sure enough, the parent company’s success in China not only magnified the value of the sinking market , but also paved the way for the birth of Temu.

Continuously expanding into multiple markets including Europe, Asia, and Oceania, Temu is rapidly accumulating users and deepening the platform's traffic pool.

In the US market, where Temu was first launched, its popularity continues. Currently, Temu has become the most downloaded APP in the US market, with a total of 30 million downloads in the second quarter, ranking first in the US market for two consecutive quarters.

So far, Temu's front desk shows that it has launched 37 sites around the world. Wherever it goes, Temu almost always causes a sensation.

However, it seems that Temu has suffered a setback in Asia . In July, Temu launched sites in Japan and South Korea .

Like other sites, Temu’s subsidies are extremely high in order to open up the local market. On the first day of its launch, Temu Japan launched a “discount-level subsidy” of “up to 10% off”.

In South Korea, Temu offers coupons worth up to 37,700 won (equivalent to RMB 205) to new users.

Unfortunately, these subsidies do not seem to have made much of a splash. After more than a month online, the number of Japanese and Korean consumers paying attention to Temu is relatively small compared to other sites. Some Japanese and Korean students said that almost no one in their local area has heard of the Temu Japanese and Korean site.

At present, Temu is taking big and fast steps. Some sellers can’t keep up with the pace and leave the market due to losses, while some sellers benefit from the platform and have huge orders every day. It remains to be seen how Temu will perform in the future.

Temu

Price increase