A new report shows that 20 percent (one in five) of Americans visit Temu weekly. With this consideration, it’s time you capitalise on this shopping trend by opening your own Temu store.
Run by the Chinese e-commerce company PDD Holdings, Temu is making a splash in the US market and has become a powerful competitor. The online marketplace is currently captivating American shoppers with its unbeatable combination of discounted prices, a relentless marketing push, and cutting-edge shopping experiences.
Temu improved its user experience by strategically incorporating features that had proven successful elsewhere. They’ve adopted user interface designs and functionalities similar to competitors (e.g., Shein, AliExpress) that encourage user engagement, according to a LinkedIn post by TeraGen Founder Etay Huminer.
This includes features like personalised product pages and wish lists, creating a more enjoyable and user-friendly shopping experience. A well-designed interface further boosts engagement and retention, crucial factors for app success.
Temu’s Rise to Prominence
Aligning with this report, an Omnisend report, drawing on an April 2024 survey of 4,000 consumers across four nations, suggests Temu is transcending a passing fad and evolving into a cornerstone of American online shopping behaviour.
Despite only six percent of Americans trusting Temu more than Amazon, this fast-growing platform is carving out a substantial market segment. An impressive 20 percent of Americans report shopping on Temu weekly, underscoring its increasing popularity among online consumers.
Since its late 2022 US launch, Temu has significantly risen, surging from anonymity to broad recognition. This success hinges on its strategic combination of low prices, user-friendly interface, and enticing promotions to capture and hold customer loyalty.
Temu has become a frequent flyer in American households in less than two years, outpacing established players like eBay, Etsy, and TikTok Shop. Omnisend report indicates that 34 percent of consumers order from Temu at least monthly, compared to 29 percent for eBay, 23.1 percent for Etsy, and 20.9 percent for TikTok Shop. Despite its rapid growth, however, it should be noted that some consumers still need to be convinced of Temu’s legitimacy.
Advertising fueled Temu’s notable rise. In 2023, parent company PDD Holdings invested a staggering $2 billion in advertising on platforms like Meta and Google. Earlier this year, South Korean regulators investigated Temu, suspecting false advertising and unfair practices. Despite this ongoing probe, Temu’s massive advertising spend has undeniably boosted brand awareness.
The company further amplified its reach with a multi-million dollar Super Bowl ad campaign, strategically targeting a broader audience. While these ads may not have gone viral, they undoubtedly solidified Temu’s presence in the minds of many American consumers.
Join the Temu Boom
Temu’s booming popularity creates a prime opportunity for new sellers to establish themselves in e-commerce. What’s more, new sellers may find building a business on Temu easier than other established online marketplaces due to potentially less competition. So how to get started?
Temu boasts a diverse selection of products, catering to a wide range of customer needs and interests. Here are just some of the popular categories where you can find success as a seller:
Fashion and Apparel: Clothing, shoes, accessories, and jewellery for every style.
Home and Garden: Spruce up any space with home decor, kitchenware, gardening tools, and furniture.
Electronics and Gadgets: Stay connected and entertained with mobile accessories, audio devices, and smart home products.
Beauty and Health: Discover a world of skincare, personal care, makeup, and wellness supplements to keep you feeling your best.
Sports and Outdoor: Gear up for adventure with fitness essentials, outdoor activity equipment, and sporting goods.
Toys and Games: Spark creativity and fun with children’s toys, board games, and hobby supplies.
Pet Supplies: Pamper your furry or feathered friend with food, toys, and grooming products.
Once you’ve chosen your perfect product, here’s your roadmap to navigate the process efficiently.
Step 1 – Seller Account Creation
Kicking off your Temu adventure starts with creating a seller account. To do this, head to the Temu seller platform and register your business. During registration, you’ll be asked to provide essential business details and documents, including your business license and tax information.
Remember to carefully review and agree to Temu’s seller terms and conditions to ensure you operate within their guidelines.
Step 2 – Finding Suppliers and Placing Orders
After setting up your account, it’s time to source your products. If you don’t manufacture them yourself, locate reliable suppliers. You can find them through B2B marketplaces like Alibaba or by contacting manufacturers directly.
Once you choose a supplier, place your initial order, remembering to consider Temu’s customer base and what products would appeal to them.
Step 3 – Listing Your Products
- Gather high-quality photos that showcase your products in their best light.
- Craft detailed descriptions that emphasise key features and benefits that will resonate with Temu’s customers.
- Strategically incorporate relevant keywords into your product titles and descriptions to boost searchability.
- Set competitive pricing to attract buyers.
Remember, success is a journey! Regularly update your listings based on customer feedback and sales data to stay ahead of the curve.
Once your products are listed, focus on efficient order fulfilment, timely shipping, and exceptional customer service, including managing returns and addressing feedback. These steps will play a key role in helping you establish a strong foundation for your Temu store.
Other Key Details
Opening a Temu shop is accessible to most! As long as you meet their registration requirements and agree to the seller’s terms, you can be on your way to selling. International sellers are welcome in Temu, too, but they must be prepared to navigate additional considerations like international shipping agreements, customs regulations, and potential variations in tax structures.
Temu charges various fees, including commission on sales and listing fees. To ensure you have the most accurate details, visit the Temu seller platform for their latest fee structure.
Payments from your Temu sales are typically deposited to your linked bank account. The platform deducts any applicable fees before processing the payment and ensures timely disbursement according to their payment policy.
While tempting, reselling Temu products directly on Amazon requires careful consideration. You’ll need to purchase items from Temu upfront and then list them on Amazon as a third-party seller. Remember to adhere to Amazon’s selling policies and develop a plan for managing inventory, pricing, and shipping to ensure success.
Temu’s rise has opened doors for new sellers and enticed budget-conscious consumers. However, this fast-growing platform is under scrutiny in South Korea for alleged false advertising and unfair practices. While the potential for success is undeniable, aspiring sellers should know these ongoing investigations.