Looking at 2022, Chinese e-commerce companies are springing up like mushrooms after a spring rain. First, the steady growth of SHEIN, then the gradual warming up of Tik Tok stores in the local market, and Temu’s menacing arrival in the last quarter… Chinese e-commerce When giants go overseas, it seems that a hundred flowers are blooming, but in fact they all inevitably lead to the same goal. In order to seize market share, they resort to the big killer of "low price + discount + free coupon".

Of course, businessmen can't afford it without profit. Since they want to eat meat in this low-price spiral market, they must think that ordinary people dare not think about it, and honest people dare not do it . The quick-thinking Chinese seller looked at Temu's $2.00 free shipping sweater and $0.99 Christmas gift section, and came up with the idea of ​​an empty-handed white wolf.

Source: Zhiwushuyan e-commerce community

0 1 Limited time to collect wool, Amazon sellers empty gloves white wolf

Anyone who knows the specific method is nothing more than turning Temu into AliExpress and becoming a supplier.

As early as October, some Amazon self-shipping sellers had the idea of ​​​​"no source of supply model". After all, no matter how low Amazon's price is, it can't match Temu's floor price. At the same time, Amazon needs to invest in overseas warehouses for stocking, logistics, after-sales and competition, and the cost is getting heavier and heavier. And as long as there is a negotiation, Temu sellers can ship without trace, and most of the after-sales risks are transferred. The overall payment period is 15-30 days, and the capital turnover is more efficient than the original Amazon self-delivery. Why not do it .

In the early market sprint period, the Temu platform mechanism was not perfect enough. Many Temu sellers not only had to face the C-side wool party, but also helped the B-side wool head.

Of course, this way of playing is not always profitable now. Lucky sellers earn a lot of money and return to self-delivery early. Unfortunately, the selected Temu store has poor after-sales service and poor product quality reviews, which lead to the continuity of their own stores. There is a problem with the operation.

Source: Amazon

0 2 Temu, does the seller like it or play it?

Having said that, we have to discuss a question, is Temu's marketplace what Amazon sellers want? Do cross-border sellers welcome Temu?

First of all, we need to understand that Temu's impact is on the low-end market.

Temu's user population is concentrated in wool parties and low-consumption groups, and has a different market positioning from Amazon's high-net-worth consumption users. Of course, Amazon also wants to be the consumer market that Temu focuses on, but there is SHEIN in the front and Wish in the future.

Therefore, Temu’s gameplay is not enough to pose a threat to Amazon sellers who have high unit prices and high-quality after-sales services. And objectively speaking, Temu’s money-burning subsidy method cannot last long. In the case of the global economy, especially inflation, which cannot fall back in a short time, Temu’s method is “killing one thousand enemies and harming eight hundred” for the market and platform sellers. ".

At present, Temu sellers lack experience in category operation and private brand protection, and the product categories of the platform are not rich enough, and have not yet been developed. Of course, this is not to say that Temu is not competitive. The small and light commodity market that Temu is now sprinting into will still have a big impact on Amazon sellers of the same category. The power is still far beyond the current Temu sellers.

Let's talk about Amazon sellers' views on Temu, welcome, definitely not, but if you say against it, that's not always the case.

A seller in the industry said that in the future, it will definitely not be able to beat Temu in making low-priced products, and what must be done is to upgrade its supply chain and products. This directly makes many sellers enter the difficult mode from the experience mode. If these problems cannot be solved, they are destined to be eliminated by the market. At that time, the market will definitely reshuffle and create new opportunities accordingly.

Fundamentally speaking, in recent years, Amazon’s low price involution and traffic bottlenecks have made many sellers overwhelmed. The pool is so big, and the arrival of Temu, in addition to releasing consumption power and providing new market traffic, can also make Amazon There is one more way out for sellers who are struggling or even facing elimination in the traffic pool.

Xiao V believes that as long as Temu does not go all the way to the black with tens of billions of subsidies, then incremental development is basically a certainty. After all, the European and American markets are not like the domestic ones. The low-price development model will not only hurt the interests of sellers in the long run, but also cause "deep concern" from relevant local departments.