Introduction: The Rise of Temu and the reshaping of the global e-commerce landscape
In the past two years, Temu has been hot and popular among the entire cross-border e-commerce platform. As an international e-commerce platform under Pinduoduoshi, Temu has risen to prominence rapidly since it was officially launched in the North American market on September 1, 2022, ranking 14th in the United States shopping app list in just one week. Today, Temu has expanded to more than 50 countries and regions, becoming the second largest shopping platform in the world. So whether we POD clothing sellers are suitable for this cross-border e-commerce platform “ Emerging bully ” ? How do I get in? How to choose different operating models? This article will delve into Temu's operating model, advantages and challenges, and how to help POD clothing sellers better understand Temu, the world's second largest cross-border e-commerce platform.
Temu's Road to Success: From North America to the world
Behind the rapid rise
Temu's success lies not only in its unique business model, but also in its precise grasp of the market. With a fully managed, semi-managed and upcoming third-party platform model, Temu provides flexible options for different types of merchants, simplifies operational processes, and sets the same low price strategy as before to identify the target group and accelerate market expansion.
Global layout
From the initial success of the North American market, to the gradual entry into 27 countries and regions such as Australia, Canada, New Zealand, and the United Kingdom, and then into the Asian market, Temu has demonstrated its strong market expansion ability. As of March 2024, Temu has been officially launched in Japan and South Korea, further consolidating its position in the global e-commerce sector.
Detailed description of Temu's operating model
1. Full hosting mode
- Simplified operation process: merchants only need to focus on the supply of goods, and the rest of the links such as pricing, logistics and customer service are taken care of by the platform.
- Optimized risk control: platform provides professional stocking guidance to help merchants reduce the risk of inventory overstocking.
- Lower entry threshold: provides a convenient entry and operation mode for novice merchants who lack cross-border e-commerce experience.
2. Semi-managed mode
- Higher operational autonomy: merchants can have more decision-making power, handle logistics, warehousing, and return goods.
- Increased market opportunities: platforms may provide traffic support and improve product exposure.
- Improve logistics efficiency: Improve logistics efficiency and reduce logistics costs through overseas warehouses.
3. Third-party platform mode (to be enabled)
- High degree of initiative: The merchant has comprehensive product and store management control.
- Diversification of product categories: Attract more merchants to participate and enrich the product selection of the platform.
- Accelerate market expansion: helps the platform rapidly expand market share on a global scale.
Analysis of advantages and disadvantages of three modes
1. Full hosting mode
- Advantages: Simplified operation process, optimized risk control, and lowered entry threshold.
- Disadvantages: Limited profit margin, weakened brand control, limited customer experience.
2. Semi-managed mode
- Advantages: Provides higher operational autonomy, increased market opportunities, and improved logistics efficiency.
- Disadvantages: has higher requirements on the operation ability of merchants, needs to bear inventory and logistics risks, and increases the cost of communication and coordination.
3. Third-party platform mode (to be enabled)
- Advantages: To provide a high degree of initiative, diversification of commodity types, accelerate market expansion.
- Disadvantages: Stricter qualification audit requirements, increased risk of violations, high operational independence requirements.
Novice settled Temu's Shop guide
1. Types of enterprises that can be settled
- Mainland Personal shop
- Mainland Individual industrial and commercial enterprises
- Mainland enterprises
- Hong Kong Enterprises
2. Entry requirements and precautions
- full custody mode: legally registered enterprises or individuals, with good business reputation and operating records; Products must comply with domestic and foreign regulations and standards; The deposit is RMB1,000.
- semi-managed mode: has overseas warehouse, and has the spot can be sold directly on the shelves; Merchants need to cooperate with the platform to complete advertising, customer service and sales links; The deposit is 10,000 RMB or 1,400 USD.
3. Collection requirements
- Enterprise store: can bind the company to the public account or the legal representative of the same personal bank card (need mainland ID card).
- Personal store: must be bound with the same name as the business license operator personal bank card.
4. Key Notes
- Submit details to ensure accuracy and improve pass rate.
- Once rejected, the store name cannot be reused.
- Store name, Logo, product name must be in English; The title of the product can be in Chinese or English, but the details page must be in English.
- Ensure that the categories are correctly classified to avoid affecting sales due to wrong categories.
Conclusion
Temu, with its innovative operating model and flexible options, has become an important player in the global e-commerce field, whether novice merchants or large sellers, can find their own development path in Temu. In the future, with the launch of the third-party platform model, Temu is expected to play a greater influence in the global e-commerce market. However, it should be noted that Temu's current unfavourable is mainly concentrated in the low price range, for the high-end market did not open the situation, just like in the domestic market, and, full hosting and semi-hosting mode, the business initiative is not high, for our POD clothing sellers, need comprehensive consideration, but for now, Once it fits Temu's market positioning, as well as the advantages of cost, there is a great opportunity to burst orders, in addition, for customized products, Temu is also focusing on investment, and open a new traffic entrance, which is a good thing to pay attention to for our POD clothing sellers, and can focus on this platform.
FAQ
1. What is Temu?
- Temu is a cross-border e-commerce platform owned by Pindoduo, which has expanded to more than 50 countries and regions, providing fully managed, semi-managed and third-party platform models, becoming the second largest shopping platform in the world and the most vigorous cross-border e-commerce platform in the current development momentum.
2. What are the advantages of Temu's fully managed mode?
- The full custody model simplifies the operation process, optimizes risk control, and lowers the entry threshold. In this model, the merchants only need to send the goods to the domestic warehouse, and then, there is no need to manage other affairs, and the platform automatically takes over the subsequent pricing, sales, and transportation, and sends each consumer's goods directly to the destination in a small postal package.
3. Which merchants are the semi-managed model suitable for?
- Semi-escrow mode is suitable for businesses with strong operational capabilities and wish to maintain a certain degree of initiative, especially sellers with local pallets in the United States, in the semi-escrow mode, businesses need to handle logistics, warehousing and return and exchange of goods by themselves and there is no review process, with more autonomy, higher performance time, but also bear greater risks. So it's more suitable for sellers with local pallets.
4. When will Temu's third-party platform mode be enabled?
According to financial media reports, Temu is considering the introduction of a third-party platform model, the specific launch date has not yet been announced, the model allows merchants to manage more aspects of their own, such as selection pricing, store operation, while the platform collects transaction commissions. That is, the regular Amazon and ebay seller store model. Previously, Shein and Ali's AliExpress have provided these options.
5. How can new merchants settle in Temu?
- Novice merchants need to submit detailed information, including commodity unit price, factory background, platform experience, etc., and ensure that it is filled in accurately to improve the passing rate. At present, the entry threshold of the full trusteeship model is lower than that of the semi-trusteeship model, and it is more suitable for novice sellers with supply advantages and cost advantages, but relatively speaking, profits will be compressed and there is no autonomy. Interested POD clothing sellers can wait, and so on, after the introduction of the third-party POP model, combined with their own advantages, and then consider which model to adopt.
