Temu is coming for #Amazon – sooner than you may think.
The Chinese-owned retailer is set to open its marketplace to US & EU merchants.
And it's no surprise that Amazon sellers are eager to start trading on it.
Compared to Amazon, Temu offers some critical advantages to early adopters:
- Low selling fees
- Less competition
- High traffic growth (+700% in 2023)
At a time when 3P Sellers are seeing their margins squeezed by rising selling and FBA fees, many see Temu as a profitable alternative.
But make no mistake: 𝗧𝗲𝗺𝘂 𝗽𝗿𝗼𝗳𝗶𝘁𝘀 𝗳𝗿𝗼𝗺 𝘁𝗵𝗶𝘀 𝗲𝘅𝗽𝗮𝗻𝘀𝗶𝗼𝗻, 𝘁𝗼𝗼.
Opening up to US & EU merchants allows Temu to:
- Start selling in new categories
- Shorten delivery cycles
- Add higher priced SKUs to its catalogue
So while Amazon is still the everything store, Temu is set to become an increasingly serious competitor in the online discount sector.
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What do you think? Are Temu's expansion plans a threat or a blessing to US & European brands?
Let me know in the comments!
#amazonnews #amazonstrategy