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The explosive growth in the North American market has prompted Temu to accelerate its overseas expansion. After opening up the Canadian site in February and landing in the two emerging markets of Oceania on March 13, Temu announced that it will launch the UK site on March 25 to enter the European market. At the same time, Temu insiders also mentioned that the UK is only the first stop for Temu to enter the European market. In the future, other European countries, Africa, Latin America and other regions will be Temu's expansion targets. There is no doubt that Pinduoduo's cross-border e-commerce platform Temu is expanding overseas at an incredible speed. However, according to recent news, Temu's overseas logistics construction seems to have temporarily failed to keep up with the platform's rapid expansion. Temu’s warehouse has been breached and the warehouse has stopped accepting goods!
It is learned that on March 15, several Temu investment managers issued a notice that the warehouse stopped accepting goods :- All new products will be discontinued; all restocking of all products will be stopped; all stocking order approvals will be stopped;
- All JIT products are removed from the shelves, and the JIT (Just-In-Time) pre-sale mode is suspended. The resumption time will be notified later.
- From the afternoon of March 15th, all unshipped stocking lists will be invalidated, and shipped products that have not been shipped in time may not be able to enter the warehouse.
At present, all Temu stock order approvals have been stopped, and the resumption time is still to be notified . It is reported that it will be about a week. Temu's investment manager emphasized that Temu sellers should focus their work on uploading products and applying for stocking in the near future, and wait for approval to be opened to seize the opportunity. The news also sparked heated discussions among Temu sellers: "My JIT hot-selling product has been removed from the shelves because it was not transferred to VMI for stocking in time." "Many products have not been delivered in time. The front desk is out of stock and the flow of hot products will be cut off if it is cut off a few more times." "The platform warehouse has a big problem. The number of warehouses and staff are seriously insufficient, as the number of goods being recruited has increased dramatically." It is learned that during the peak seasons in previous years, Amazon often encountered warehouse overflow problems due to excessive goods. The main reason for Temu’s warehouse overflow this time was the surge in platform traffic and the rapid increase in orders. After launching in September last year, Temu achieved a miracle of growth in a short period of time by adopting a low-price strategy in line with the background of consumption downgrade and viral marketing through social media channels. After the advertisement appeared on the "American Spring Festival Gala" Super Bowl in February this year, Temu's traffic reached a peak again. According to SensorTower data, on the day of the Super Bowl, Temu's downloads surged by 45%, and the number of daily active users soared by about 20% compared with the previous day. With the continuous increase in traffic and Temu's unremitting expansion, sellers on the Temu platform have welcomed a surge in orders. However , shortly after the sellers tasted the joy of the surge in orders, the news of the explosion of Temu's warehouse was like a heavy hammer hitting the sellers' hearts. Under this circumstance, the sellers’ already limited expectations for Temu were largely consumed, and most sellers asked the question: Does Temu still have a future? Temu is ambitious, but is frequently complained by sellers!
Temu, which has been aiming at SHEIN's path since its launch, has shown its ambition without concealing it. Temu insiders revealed that Temu set an astonishing KPI for its North American business in February this year: by September 1, 2023, its North American GMV will exceed SHEIN at least one day. This means that Temu needs to surpass SHEIN, a predecessor with a deep foundation, within a year of its overseas launch. In fact, even if it is only one day, it can be called a growth miracle. But in contrast to Temu's undisguised ambition, there are loud complaints from Temu sellers. Here is a summary of Temu’s crimes listed by the sellers: 1. The product price is too low. Temu not only requires the product price to be lower than the 1688 wholesale price, but also directly removes the seller’s products if it finds that the same product with a lower price exists on the same platform or other platforms. ▲ The picture comes from the seller’s disclosure 2. Management chaos. Not only will the warehouse arbitrarily deduct shipping fees for self-pickup products, but there is also a lack of feedback channels, making it difficult for sellers to appeal when they encounter random deductions. 3. Strict penalty system. Once a product is accused of quality problems, the seller will be forced to bear a high penalty without any evidence or specific details. 4. All processes are inefficient. The review and price verification process is slow, the quality inspection and shelf placement are slow, and the payment is also slow. 5. Platform rules can be changed at will. It can be seen that behind Temu's three-pronged strategy of using low prices to pry open up overseas markets, there are still many sellers who are struggling to move forward with "cut profits". In the discussions of many Temu-related articles previously published, many sellers have complained: If Temu continues to develop in this way, it will sooner or later follow the same path as Wish. Of course, Temu is not completely without opportunities to make money. In the recent surge in orders, many supply sellers have made a lot of money by "small profits but quick turnover" . But in general, Temu's platform services are still to be improved. For sellers, entering Temu still requires facing multiple obstacles and considering multiple aspects. As to whether GWV can reproduce its growth miracle in the future as Temu expected, only time will tell.
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