Temu operation analysis: When formulating product selection strategies, we fully refer to the total sales, number of comments, and sales in the past 24 hours of the front-end link...

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01.

Temu Overview and Operational Intentions

Most people have a polarized attitude towards Temu, and relatively few people really hate it. At the same time, phenomena such as the rapid rise of Temu and the decline of other platforms in the industry have also occurred one after another. For those who are engaged in the cross-border e-commerce field and participate in related discussions, doing business on Temu is undoubtedly an attractive option.

02.

Temu Full Trusteeship Model Operation Process

1. Division of responsibilities and logistics distribution

In the fully managed model, although the seller nominally owns the store, in the actual operation process, the factory bears the main responsibility for shipping to Temu. Most of the key links such as product selection, listing, pricing and sales are controlled by the platform. Merchants only need to send the goods to Temu’s warehouse in China. The platform will then be responsible for airlifting the goods abroad and completing the final delivery. However, Temu has not yet built an independent logistics system, and relies more on third-party partners in the logistics and distribution links.

2. Detailed operation process

Product selection: Merchants can fully refer to the rich content of the Alibaba platform and combine various plug-ins or information displayed on the front desk to explore potential products. This process requires comprehensive judgment of multiple factors, such as market demand, competitive situation, etc., to lay the foundation for subsequent product development.

Steps to launch a product: First, you need to find a suitable supplier to determine the product details, and then report the supply price to the platform. After that, you will enter the stage of waiting for the platform to verify the price and review the GSKU (Global Stock Keeping Unit). Only after passing this series of reviews can the product officially enter the subsequent process.

Processing of stocking list: When the price verification and return requirements meet the platform standards, merchants can start preparing for shipment. Usually, goods are sent to designated warehouses via Guangzhou and other places. During this process, multiple links such as quality inspection and warehousing are involved. Each link needs to be strictly controlled to ensure the quality of goods and the accuracy of inventory management.

Pricing and verification process: After the picture and text review and GSQ (goods sales quantity) verification are successfully passed, the system will automatically initiate a stock review. This link is crucial to ensure the accuracy of product information and the rationality of prices, which directly affects the competitiveness and profitability of products in the market.

ERP stocking list operation: The company initiates stocking lists with the help of the ERP system. During this process, it is necessary to carefully review and capture key information such as quantity and profit margin to ensure the scientificity and rationality of the stocking plan and avoid operational risks caused by data errors or estimation deviations.

Store selection and information filling: When selecting a store, merchants only need to fill in the SKU number, and the system will automatically display important data such as supply price and profit margin, which is convenient for merchants to check and make decisions. Next, fill in the delivery information according to actual needs, clarify whether to send it to the loose tube warehouse or choose to pick it up at the factory, and make detailed notes on the relevant information, then save and add details, and finally submit the application. It should be noted that the platform has a time window for applying for stocking in the morning and afternoon every day, and this process also involves the control of the financial payment rhythm and the review of the price negotiation of the 1688 sub-account, requiring close cooperation between departments to ensure the accuracy of information and the smoothness of the process.

Shipping and warehousing operations: After successfully grabbing the shipping platform, that is, obtaining the platform's consent to prepare goods, merchants can choose express services according to their own circumstances, determine the pickup time and shipping address, and then wait for the platform to announce relevant information. In this process, it is necessary to arrange the shipping time reasonably to ensure that the goods can be sent to the warehouse in a timely and accurate manner to avoid a series of problems caused by delays.

Order replenishment strategy: Merchants need to formulate corresponding replenishment strategies according to the different order volumes. For example, when the order volume is in different ranges such as 1-3 orders, 3-5 orders, 5-10 orders, etc., replenish 20-30 orders, 30-50 orders, 50-100 orders of goods respectively, and communicate with suppliers on replenishment matters in a timely manner to ensure sufficient inventory supply, meet market demand, and avoid loss of sales opportunities due to out-of-stock.

In the operation process of the full trust model, the links that merchants can effectively control are mainly concentrated in the stages of product selection, product listing, and order replenishment. Therefore, in the product selection stage, merchants should give full play to their own market insight and judgment to select products with potential;

During the product launch phase, we must ensure that related work is completed in a timely manner, such as completing product selection and launch tasks before leaving get off work at 8 or 9 p.m. to avoid losing market opportunities due to delays;

In terms of order placement and replenishment, we must flexibly adjust the replenishment strategy based on changes in market demand, follow the core principles of maximizing the order volume of single products and maximizing the average profit margin of single products, and maximize operational efficiency.

03.

Temu product selection strategy

1. Comprehensive data reference for product selection

When formulating product selection strategies, Temu sellers can fully refer to the comprehensive information displayed on the subject front page. Among them, the total sales and comments of the link and the sales in the past 24 hours are particularly critical. Although some data may no longer be visible due to adjustments to the platform rules, in-depth analysis and judgment can still be made through the existing data information.

For example, for products with a breakthrough sales volume of less than 10K, fewer than 1,000 reviews, or sales volume between 100 and 200 in the past 24 hours, you can consider adopting a direct distribution strategy to quickly layout the market and test the market response of the product; and to determine whether a single product is a hit, you need to focus on whether the total sales volume is less than 100K and the sales volume in the past 24 hours to determine the product's potential and market competitiveness.

2. Product category and seasonal product selection considerations

For non-standard products, you can refer to top sales (best-selling products) or related (related products) information to explore market trends and consumer demand preferences, which provides a strong reference for product selection. In the selection and operation of seasonal products, you need to be more cautious.

Take Spring Festival products as an example. Due to their strong timeliness, it is still possible to release them at the current specific time point. However, once New Year's Day comes, due to the limitations of domestic packaging and local delivery cycles, it will be much more difficult to replenish them, and it is easy to cause inventory backlogs. Therefore, it is necessary to pay close attention to the negative reviews of products, adjust replenishment strategies in a timely manner, and reasonably control inventory levels to ensure that while meeting market demand, economic losses caused by slow sales are avoided.

3. Use Amazon data to select products

In addition, you can also refer to Amazon's new product sales method to make product selection decisions. The specific operation method is to observe the hot products, search for the same products on the Amazon platform, and analyze their sales data in detail. If you find that the product has poor sales on Amazon and has many links, you can consider giving up the development of the product and looking for more potential products, thereby reducing the risk of product selection and increasing the success rate of product selection.

04.

Product selection and strategy points

1. Product selection sources and judgment methods

In the field of e-commerce operations, the sources of product selection are wide and diverse, among which social platforms such as TK or ins have become an important source of inspiration. For example, a product may originally come from a hot trend or user sharing on the TK platform. Although there is a certain risk that it will become a hit, this potential opportunity is worth trying and exploring. When judging whether a product has development potential, it cannot be based solely on a single sales data indicator.

Taking some product lines in 2022 as an example, although the total sales of some products are as high as 100K, which seems to be a remarkable achievement, they may have actually reached the sales ceiling, and accompanied by a large number of reviews, the profit margin is very limited. At this time, the linked product may be in a state of market saturation, and the daily order volume is only maintained at a low level of dozens of orders, and the development potential is limited.

On the contrary, for products with low total sales and few reviews, if they have had high sales in the past, plug-in tools can be used for auxiliary analysis. Although the plug-in data is not as accurate as the platform's own data, it still has a certain reference value among similar plug-ins, and can be used to deeply explore the potential value and market trends of products, providing a more comprehensive basis for product selection decisions.

2. Product selection strategies and techniques

Single product hits and vertical category creation

It is recommended to adopt a single product hit strategy and build it into a vertical category. By concentrating resources and energy to promote a certain product in a specific category, it can effectively increase the product's popularity and market influence and achieve a breakthrough in volume. For example, the previous active price product successfully achieved a significant increase in sales by arranging multiple people to carry out distribution and promotion in different categories.

When implementing this strategy, it is necessary to design a reasonable minimum supply price to avoid internal price chaos and disrupt the market order. At the same time, the model that maximizes the value of a single product should be given priority to reduce the risk of inventory loss. If multiple different styles are selected when a new product is first launched, sales may be sluggish due to the lack of unique selling points of the product, which in turn leads to inventory backlog problems. Compared with domestic e-commerce, platforms such as Amazon are more complicated in handling returns. Although domestic merchants are relatively better, they still need to attach great importance to inventory management to ensure efficient and stable operations.

Combination sales increase profits

For those products that have certain market potential but low profits after testing, innovative ways of selling in combination can be used to improve the overall profit level. Take the computer iron set as an example. Its procurement cost fluctuates within a certain range, and the supply chain is mainly concentrated in Dongguan, Yiwu and other places. By cleverly designing different combination schemes, such as selling related products such as mouse, keyboard, computer bag, etc. in combination, it can meet the diverse needs of consumers while increasing the added value of the products, thereby improving the overall profit margin.

Dealing with TRO risks

In the process of e-commerce operation, TRO (temporary restraining order) is a risk factor that cannot be ignored. Even if the company has its own design department or mold-making capabilities, it may still encounter TRO problems. For example, in this year's operation, there were two TRO cases. If the operation team failed to detect and handle them in time, it would cause serious impact on financial withdrawals, because the products may still be shipped normally, but the funds are frozen and cannot be withdrawn. Solving TRO problems usually requires a certain amount of money to hire a lawyer for settlement, and the probability of encountering TRO in the distribution model is relatively high. Therefore, in the process of product selection and operation, special attention should be paid to the intellectual property risks of the products and preventive measures should be taken in advance.

Competitive product analysis and product selection reference

In-depth analysis of key sales indicators of competing products and finding products with similar features are also important steps in the product selection process. Through detailed analysis of competing products' functional attributes, market performance, user reviews and other data, products with market potential but different appearances can be discovered, and reference can be made to the image display style and marketing strategies of competing products to optimize and promote one's own products. In the early stages of product launch, this approach can often help merchants obtain higher profit margins and achieve the goal of quickly entering the market.

(III) Operational product selection process and skills

Product Page Familiarity and Data Requirements

In the process of product selection, the operation assistant needs to attach great importance to the familiarity of the product page, send the product selection information to the work group on time every day, and the product selection data must strictly comply with the selection model set by the company. This model usually covers core points such as price, time, and sales volume, requiring the operation assistant to conduct comprehensive and detailed analysis and judgment in the product selection process, and cannot choose products arbitrarily based on personal subjective will, to ensure the scientificity and accuracy of product selection.

Non-standard product variant strategy

For non-standard products, it is recommended to adopt a strategy of making different sizes of a pattern or multiple patterns of the same size, rather than simply setting multiple patterns of the same size in one link. Taking Valentine's Day pillowcases as an example, by providing a variety of sizes of a pattern, such as large, medium, and small sizes, or multiple pattern designs of the same size, such as love patterns and couple patterns, the customer's choice diversity in the purchase process can be increased, and the personalized needs of different consumers can be met, thereby improving the attractiveness and competitiveness of the product.

National pricing and profit considerations

In terms of national pricing, companies usually require a profit margin of 15%. When calculating the supply price and purchase price, it is necessary to strictly follow the prescribed calculation method to avoid deviations in profit assessment due to calculation errors, which will affect the overall operational efficiency. Accurate pricing can not only ensure the competitiveness of products in the market, but also bring reasonable profit returns to the company. It is a crucial link in e-commerce operations.

Tips to increase sales and profits

In the process of product operation, there are many techniques and methods to increase sales and profits. If the product has a good rating and shows signs of being a hit, you should add a variant to the original link in time instead of opening a new link. This operation can make full use of the traffic and user base of the original link to quickly expand the sales scale of the product. In terms of pricing techniques, you can increase the number of product combinations or change the configuration size, use different sizes with multiple colors, etc. to improve the perceived cost-effectiveness of the product and attract consumers to buy. In addition, reasonable modification of the main product image can also effectively enhance the attractiveness of the product, but care should be taken to avoid being identified as a duplicate image by the platform. Therefore, in the design of the main image, you need to focus on creativity and differentiation to highlight the unique selling points and advantages of the product.

Hot sale processing and pricing strategy

When a product is successfully built into a hit, it is necessary to take the initiative to reduce prices. On the one hand, this is to maintain the product's price competitiveness at the front end and ensure the continued stability of sales. Because once the price is raised, it may lead to a significant drop in sales, affecting the product's market position and sales performance.

On the other hand, proactive price cuts can effectively reduce the profit margins of subsequent competitors, extend the life cycle of popular products, and consolidate their own dominant position in the market. At the same time, the platform's support for similar products is often based on price considerations. Proactive price cuts can further strengthen the product's advantage in the platform's recommendation algorithm and attract more traffic and orders.

Supplier cooperation and management

In the process of cooperating with suppliers, if you find that the same product is available on 1688 and other merchants are almost not selling it, you can try to ask the supplier to raise the price in order to obtain a more favorable pricing space in the platform price verification process. However, you need to pay attention to various problems that may exist with suppliers, such as the delay in the delivery of large orders due to a proud mentality. To deal with such risks, you can adopt a strategy of finding several suppliers to ensure the stability and flexibility of the supply chain and avoid business interruptions or delays due to problems with a single supplier.

Inventory Management Tips

Inventory management is one of the core links in e-commerce operations, which is directly related to operating costs and customer satisfaction. In Temu's stocking logic, the calculation method of predicting daily sales is not transparent enough, which requires the operation team to prepare more accurately. For details, you can refer to the platform's on-sale delivery cycle, deeply calculate the marketing and operation rules, set reasonable percentage weights for sales in different time periods, and improve the accuracy of inventory forecasts.

For example, if the first order of a new product is sold out within one day and the backend order cannot be grabbed or cannot be grabbed, if conditions permit, you can consider opening GIT (general inventory transfer) or virtual inventory to supplement sales and avoid the loss of sales opportunities due to out-of-stock. At the same time, in addition to referring to the sales appeal score, you also need to closely observe the changes in the front-end price, because price fluctuations often have a direct impact on sales, which in turn affects inventory demand.

For products with sudden price changes, the stocking quantity should be adjusted in a timely and corresponding manner to ensure the rationality of the inventory level. In the product start-up stage, it is even more important to pay attention to price trends and ensure that the inventory quantity can be maintained in a reasonable range of 7-10 days, which can both meet market demand and avoid inventory backlogs. The setting of safety stock needs to comprehensively consider multiple factors such as stocking cycle, upstream supplier supply capacity, platform promotion, etc. By rationally planning the overlord inventory, it can effectively get rid of the limitation of platform traffic occupying slots and increase product exposure and sales opportunities.

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