Temu is the second most trafficked ecommerce site in the world.
Ebay is third, AliExpress is fourth.
So, how on earth did Temu have this meteoric rise?
Say hello to Amazon.
Amazon partnered with Temu to ultimately:
In doing so, Amazon can now promote brands as a more premium feature (remember brands are selling on their own websites and through high street stores- who are also selling online). Are they gearing towards a higher priced/ brand focused store?
This is from Amazon. See the premium brands link?
What is known is that Amazon has created an environment where people trust Amazon. Amazon delivers, is quick, cool return policy, easy check out. They make buying simple and seem to back what they sell.
So if you found a product, regardless of brand, then more than likely you will buy because of:
Just like the Reviews, Stars and Sales suggests ;)
So you are comfortable buying most products through Amazon as long as the creator puts some effort into making sure the product looks like it is like the sales picture and doesn't fall apart.
Now this comes back to Disney and Pixar. it is a well known story. Disney was the initial distributor of Pixars movies and when Toy Story first appeared, Pixar had a hit and it showed that computer animation could make movies. Disney, locked in a deal with Pixar has now created a rival to which after the deal Pixar could do their own thing and Disney would have a problem. Disney realised this and renegotiated the deal with Pixar and Pixar stayed at Disney. Steve Jobs did the deal.
Temu has been helped by Amazon to help Amazon. Now Amazon is not stoopid but you have to ask yourself. Why did they help another ecommerce site get so big?
Temu doesn't look like Amazon now, but Amazon didn't look like this tens of years ago when it first started.
Amazons response? Sell products at a lower price, probably consumables and well turnover products (like towels and sheets). But:
#Amazonโs strategy to compete with #Temu? Lower prices by sourcing directly. But how low can they go? ๐ค Whatโs the impact on #AmazonSellers? Is "cheap" the right move, or just for consumables? #Ecommerce #RetailTrends #AmazonVsTemu
— Dominic (@MyJasonera) October 23, 2024
Temu has to do what Amazon did and that is to build trust. Without that people perception of their goods (rightly or wrongly) is going to be marred with the companies that they sell from. So if twe have a look at the Temu website we see a lot of things:
Those percentages are way too much of a range. Also those are many companies that ship. Can't you choose one? However, when searching online, if the shipping goes over a certain time you get a voucher. Which is a nice touch.
It has an affiliate section. Which has commissions from 5-20%. It also has bonuses when you join or sell certain amounts. If Amazon keeps on tweaking its affiliate structure to the degradation of affiliates then Amazon loses some of its sales force. Does it care now? Probably not, but how about if the sales force goes over to Temu and gives them a super boost?
#Temu's affiliate program offers 5-20% commissions. With #Amazon tweaking its own affiliate model, could we see a shift in the sales force? A super boost for Temu if affiliates switch sides. ๐ผ๐ #AffiliateMarketing #EcommerceBattle #Temu
— Dominic (@MyJasonera) October 23, 2024
It is heavily promoting the app. This then tries to push you away from going online and subconsciously going towards Amazon.
Use social more. Temu, being the second most trafficked ecommerce website in the world has how many subs on Youtube? 9 million? More? Nope, 341k :)
Maybe Youtube could be where they explain the company? Discuss with providers and customers, interviews etc. However I believe Youtube is not available in China but as they build maybe the amount of Youtube videos and subs increase? But when you go through their Facebook account there are tons of short product videos. But. If their audience is on TikTok then is not being on Youtube actually matter?
But it is really going for the social aspect. Oddly enough didn't see Pinterest which we would have thought would be a good tie in with visual products.
The cool idea? They give out discount codes on their social platforms
Then you have to ask.
What happens if they buy out Shopify or even AliExpress? Now we would have a huge ecommerce company. Doesn't seem a too much of a long shot idea though. And you can see this happening. To buy up a company that has selling and distribution infrastructure already in place.
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