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According to the latest global e-commerce shopping index statistics released by Salesforce, global e-commerce traffic increased by 6% year-on-year in the first quarter of 2023, achieving growth for five consecutive quarters. However, the number of online orders has declined for five consecutive quarters, with the average number of items per order decreasing by 6%, and the average order value also declining. This means that although global e-commerce traffic is growing, the profit generated by each customer visit to an e-commerce website is declining. After reading the data in this report, many sellers pointed out that this is a major sign that global e-commerce platforms are moving towards low-price involution. Among them, Temu, as the "king of involution", has made a significant contribution. Temu traffic continues to rise, and new sites continue to be opened It is learned that according to Comscore data, as of February 2023, Pinduoduo's cross-border e-commerce platform Temu has attracted 70.7 million independent visitors to its websites and applications in the United States, surpassing a large number of mainstream e-commerce platforms in the United States and SHEIN, which is in the same track as it.
This data was posted by a seller and also caused heated discussions in the seller communication group: "Temu has 70 million, my god, no wonder Amazon's traffic has deteriorated." “Almost twice as much as SHEIN, is this true?” It is learned that when Temu was first launched last year, its traffic soared thanks to low-price subsidies and viral social media marketing strategies. In February this year, with the traffic boost from appearing on the "American Spring Festival Gala" Super Bowl, its downloads surged by 45%. Since then, Temu, which has achieved explosive growth in the North American market, has started its global expansion. So far, TEMU has opened sites in 12 countries , namely the United States, Canada, Australia, New Zealand, the United Kingdom, Germany, the Netherlands, Italy, France and Spain. On May 18, according to the sellers, TEMU opened two new country sites in Austria and Mexico . From the Temu seller backend, Austria and Mexico are also on the site list. Temu's continuously increasing traffic and rapid expansion have made many sellers eager to join this new platform . Some sellers have even succumbed to the temptation and have resolutely entered the market. Among them, there are many supply-oriented sellers who have made a fortune through "small profits but quick turnover", but more sellers are still suffering from Temu's ultra-low price strategy. And judging from the new strategy that was recently revealed, Temu is still determined to go down the "low-price" path. Temu starts bidding mode and lowers product prices
It is learned that recently, many Temu sellers reported that they received a notice regarding product bidding rules . The notice stated that the sellers who received the notice have already added products to the bidding process and need to confirm and send samples as soon as possible. Failure to do so within the deadline may result in the product being removed from the shelves or restocking being suspended. The specific bidding rules are as follows: 1. Bidding for the same product will be conducted once a week, and the bidder with the lowest price will win (Monday morning 9:00-Thursday night 23:59); 2. After the system automatically initiates the bidding, the seller needs to confirm the invitation in time. Failure to confirm in time will result in bidding failure; 3. Products that fail to win the bid will be restricted from being added to the platform and being stocked, while products that win the bid will not be restricted. ▲ The picture comes from the seller’s disclosure Key points: Bidding for the same product will be conducted once a week. Failure to participate in time or failure in bidding will result in restrictions on launching new products. As soon as the notice came out, many sellers were very angry: "Temu is fleecing sellers every day. If you don't participate in the bidding, you may be removed from the shelves?" "Hasn't there been a direct price comparison strategy between different platforms before? Now the same product on the same platform is also subject to discounts?" "If this continues, bad money will sooner or later drive out good money." It is learned that since its launch, Temu's traffic distribution logic has always been centered on "low price". Some sellers have found that Temu not only tilts traffic to lower-priced products, but also performs a series of operations to lower product prices.
For example, before this, many sellers had complained that Temu not only required the product price to be lower than the 1688 wholesale price, but also directly removed the sellers' products from the shelves when it found the same product with a lower price on the same platform or other platforms. ▲ The picture comes from the seller’s disclosure It is obvious that while Temu is carving out a path in the sinking market with its extremely low prices, the platform sellers are still struggling forward with "cut profits". In addition, since its launch, Temu has been criticized by sellers on the platform due to factors such as chaotic management, harsh fines, and inefficient processes. At present, Temu, which is well versed in marketing, has indeed achieved great results in increasing platform traffic and the number of users, but its operating system and management system need to be improved. Therefore, even though Temu is developing rapidly now, whether it can remain at the top of the overseas consumer market in the future remains to be verified by time.
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