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Following the previous announcement of a layoff of 10,000 people, people familiar with the matter recently revealed that Amazon's layoffs may expand to 20,000 people, involving distribution center employees, technicians and corporate executives.
It can be seen that the technology giants at the forefront of the industry were the first to notice the subtle changes in the macro market. Amid the wave of layoffs that was higher than the other, pessimistic expectations for the future were also conveyed to the market.
In the recently concluded Black Friday online promotion, although online sales broke records again, a considerable number of sellers still fell into the dilemma of a slow season. The reason is that inflation has led to reduced demand, the offline real economy has recovered, and platforms such as Temu have grabbed the traffic of the promotion.
However, while Amazon sellers are struggling to make ends meet, Walmart sellers are also facing a difficult time . While the wave of account bans has not yet subsided, "Pinduoduo" follow-selling incidents have emerged one after another. Sellers are copied by Pinduoduo and their shopping carts are snatched at low prices After the shock of Amazon’s account suspension last year, many sellers chose to explore multiple sales channels such as Walmart, among which the number of Chinese sellers on Walmart has soared. In the recent Black Friday, Walmart also performed well, surpassing a number of platforms to become the shopping website with the most searches on Black Friday.
However, before they could enjoy the fruits of the big promotion, a wave of rapid store closures caught the sellers off guard, with a large number of stores temporarily banned for violating policies, failing to meet operating performance standards, etc. The account closure storm has not yet subsided, and recently another seller has been "debunked" by Pinduoduo.
Recently, a Walmart seller revealed on a forum that he had a WFS product in the warehouse in mid-November, and the next day he successfully placed an order, and the situation was going well. However, the good times did not last long, and the sales of this product suddenly dropped to zero. The seller checked the front desk and was shocked to find that the product was copied and the seller's name was changed to pinduoduo.
By searching pinduoduo, the seller found hundreds of product links. It is reported that this is an organization specializing in follow-selling. If you click on a few products, the prices are basically a few cents cheaper than similar competing products, and they have snatched many shopping carts with their low price advantage.
The above situation also happened to many Walmart sellers. "My products are not only copied by Pinduoduo and JD International, but even more outrageous is that Walmart also comes to take advantage of them," said one seller angrily.
There are also Amazon sellers who reported that one of their previous products was also copied by Pinduoduo. Fortunately, after being bombarded with emails and text messages, the other party stopped copying the sale in time.
Regarding this rampant phenomenon of copycat sales, some sellers admitted that even if Walmart has registered its brand, it is difficult to directly drive away the copycat sales through case complaints. Currently, the method with the highest success rate is still test buy, but it is basically difficult to deal with the situation of copycat sales in bulk.
Pinduoduo's follow-up sales have caught many Walmart and Amazon sellers off guard, causing their products to be diverted. It is not clear whether it has a direct relationship with Pinduoduo, but most sellers speculate that it is an unscrupulous seller who maliciously named it to smear it.
However, while Pinduoduo was constantly involved in the follow-up sales incident, Temu on the other side was involved in the seller arbitrage scandal. Temu becomes Amazon's source of goods, sellers are banned for carrying low-priced goods Pinduoduo, which only entered the overseas market in September this year, quickly captured American sellers with its super-low-priced products. After more than a month of launch, its average daily GMV exceeded 1.5 million US dollars, and it topped the US App Store download list in November. During Black Friday, Temu launched a series of main promotional activities at "discounted prices", which strongly disrupted the Black Friday market.
Although the industry has mixed reviews, it is undeniable that Temu is making rapid progress in overseas markets. Some time ago, Pinduoduo updated its investor relations page and ranked Temu ahead of its main site business Pinduoduo when describing its business scope, which shows its strategic position.
Temu's rapid rise is essentially due to its three means: low-price subsidies, money-burning marketing, and social fission. When Amazon stipulates that the deal setting cannot exceed 55%, Temu has shown its killer weapon of 70% discount. It is reported that for the same type of products, Temu's price is 20%-30% cheaper than SHEIN, less than half of Amazon's price. Such a rock-bottom low price has also made some sellers have evil thoughts.
It is reported that since the retail prices of many products on Temu are cheaper than the purchase prices on other platforms, many Amazon and AliExpress sellers use Temu as a supply chain. They first link to Amazon, and then place orders through Temu after successfully placing orders, in order to make arbitrage profits.
With its low price advantage, Temu has attracted many Amazon sellers to become nature's porters, and is poised to replace AliExpress as a new emerging drop shipping powerhouse for Americans.
Some sellers even have wild ideas: develop a collection software to spread Temu's data to major platforms such as Amazon and eBay for self-delivery. After receiving orders from other platforms, they automatically match orders to Temu. After the data is optimized and the best products are selected, they can be directed to the independent website, thus achieving the model of a no-source full-network volume king.
However, such a dangerous idea of getting something for nothing is naturally difficult to implement. On the one hand, it violates the platform's logistics policy and the product tracking rate is insufficient; on the other hand, Temu's product packages come with many praise cards and traffic guidance, and once reported, the store will be closed immediately; in addition, the quality of low-priced products is also difficult to guarantee.
At present, some sellers have been banned by Amazon for selling Temu's low-priced products on Amazon. For this reason, sellers should just have fun and do not follow suit, lest you get killed if you try.
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