Temu is an online platform dollar store that operates marketplaces such as eBay, Amazon, and Etsy. This means that sellers should also pay attention to the platform, as it can directly impact sales, even if it doesn’t have a negative impact yet.
Digital Commerce 360 published a video on YouTube in February citing research showing how quickly Temu gained brand awareness, and data from Insider shows that Temu has become more popular with Amazon, Walmart and eBay in the US. It then noted that it became the fourth most visited retail website. Intelligence.
Temu is expected to spend billions of dollars on marketing in 2024, and Digital Commerce 360 wonders, “Will $3 billion in spending be enough for Temu to overtake eBay in 2024?” was presented.
Entrepreneur Steve Chou warns sellers on Amazon and Etsy about the threat Temu poses, and in this YouTube video, he explains what Temu is, how it poses a threat to Amazon, its benefits, and and details the challenges facing Temu itself. Chou is a seller who runs her My Wife Quit Her Job, an “educational blog and podcast that teaches others how to sell physical products online.”
Chow said Temu is vulnerable to fraudsters and legal threats over copyright infringement, and will face challenges as it expands from selling cheap goods to selling branded goods. added. “As long as Temu faces questions about the quality of its products and its reputation as a reliable seller, top brands will continue to stay away,” he said. He also said Tem could face challenges from U.S. lawmakers similar to those facing TikTok over possible ties to the Chinese government.
Chou also said in this video published on YouTube today that Etsy sellers are facing problems as Chinese sellers are returning to Etsy.
“Chinese sellers existed on Etsy until 2021, but they were quietly removed due to concerns about protecting the integrity of the Handmade Marketplace,” Chow said. But recently, China was added back to the list of approved countries for Etsy Payments, he said. “This is essentially rolling out the red carpet for Chinese sellers to come back.”
CEOs in major markets are being forced to deal with the competitive threat posed by Temu and rival Shein. We’ll find out if they have more to tell Wall Street analysts in a week and a half when they report their results for the first three months of the year. Amazon will be announced first on April 30th, followed by eBay and Etsy on May 1st.
Ina Steiner
