Temu will open to US merchants soon, and Amazon sellers are eager to try it. Here’s why. | Business Insider
Temu, a rising star in the e-commerce world, is making waves with its plans to expand its marketplace to include US and European sellers. This move, expected in the coming weeks, has sparked excitement among US-based Amazon sellers eager to explore new avenues for their businesses.
Owned by Chinese retail giant Pinduoduo Holdings, Temu has operated on a “managed marketplace” model. This approach involves manufacturers consolidating inventory in China and shipping directly to consumers internationally. While this results in longer shipping times, it also allows for lower prices than other e-commerce platforms. However, expanding into new markets will shift this model, with US sellers managing their fulfillment and logistics.
This strategic move by Temu is set to offer several advantages. Shorter delivery times and the ability to include bulkier, higher-priced items on the platform are just a few. It also reduces Temu’s exposure to the volatility of long-haul shipping costs. Initially, Chinese sellers with warehouse operations in the US are expected to be the first to adopt this new model. These sellers, already familiar with platforms like Amazon, could leverage Temu to diversify their sales channels.
American brands are also showing interest in Temu, drawn by its rapid growth in the US market. Entrepreneurs see Temu as an opportunity to reach new customers and diversify their sales away from dominant platforms like Amazon. This is particularly appealing given Temu’s reputation for lower prices, although some brands are cautious about the platform’s fit with their quality image.
Temu’s expansion comes amid scrutiny over the use of de minimis shipments, which allow importers to avoid duties and taxes on small shipments. US lawmakers are pushing for reforms in this area, which could impact platforms like Temu that rely on international shipping. However, with more domestic US sellers, Temu could navigate these changes more smoothly.
Despite its potential, Temu still has a long way to go before it can compete with giants like Amazon regarding sales volume. Nevertheless, its rapid growth has caught the attention of the e-commerce world, with Amazon considering changes to remain competitive………..
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Rising Dough
As Temu expands its marketplace to include US and European sellers, how might this shift in strategy impact the global e-commerce landscape, particularly in terms of competition, pricing strategies, and consumer choice?
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As Temu expands its market to the US and European sellers will affect the market drastically as they will start pulling in more customers, some even being from other businesses which may diversify the competition.
This strategy very well might make them on par with Amazon and other big online retail stores. They already have a big audience and now with them making a physical location for them to sell products, it just opens more path ways, causing to spread even farther.
As temu expands its market to the US and Euro sellers will definitely have a substantial effect on the market pulling in more customers from other businesses and evening and stretching out the competition. This strategy is most likely putting close to or on par with other big companies like Amazon and eBay.
Since Temu is usually the cheapest place to purchase items, many of the other e-commerce stores will go out of business.
Temu’s expansion to include US and European sellers could intensify competition, lead to more competitive pricing strategies, and offer consumers a broader range of choices, thereby influencing the global e-commerce landscape significantly.
As temu expands its market to the US and Euro sellers will definitely have a substantial effect on the market pulling in more customers from other businesses and evening and stretching out the competition. This strategy is most likely putting close to or on par with other big companies like Amazon and eBay.
Temu expanding itself to the US well definitely increase the market sales and help profit even more.