Will the [King Bomb] launched by TEMU become a new outlet? !

As a cross-border e-commerce platform under Pinduoduo, TEMU has set off the trend of "full trusteeship" in cross-border e-commerce by itself, becoming the biggest dark horse in cross-border e-commerce. Recently, TEMU will also launch a "semi-trusteeship" business in addition to the "full trusteeship" model. The "semi-trusteeship" model is planned to be launched in the US site after the new year, and will be expanded to the European site later.

How to choose between “semi-hosting” and “full hosting”?

According to the latest policy, TEMU's existing full-hosting merchants can also choose semi-hosting, which is equivalent to Temu giving all new and old merchants one more choice. Compared with the one-stop operation of full-hosting, the greatest value of semi-hosting is that it gives all new and old merchants one more choice. Sellers can choose a nanny-style full-hosting service according to their own capabilities; or when they have the ability to ship overseas, there are more flexible semi-hosting services to choose from, allowing them to give full play to their overseas resource endowments.

The semi-hosted model launched this time is mainly for sellers whose goods are in overseas warehouses. Sellers import orders into the platform and complete the delivery and fulfillment by themselves. In the previous "full-hosted" model of TEMU, merchants only need to send goods to TEMU's domestic warehouse, and the platform will help sellers solve difficulties such as promotion, warehousing, traffic, and delivery, and even distribution, customer service, and traffic investment. The after-sales part is also the responsibility of the platform.

In the semi-hosting mode, sellers need to reopen stores and choose semi-hosting services. Merchants need to resynchronize and upload products, fill in basic information, maintain inventory, and complete delivery fulfillment, which means that they can skip the processes of product selection, sample delivery, version review, and image review; TEMU is responsible for completing product details, assisting with price comparison, listing products on the US, Europe and other sites for sale, and providing consumer customer service support.

What are the new benefits under the “semi-custody” model?

The launch of TEMU's semi-trusted model will improve the delivery time for sellers and will also help improve consumer satisfaction. It is understood that in the past, TEMU went through a full set of processes for domestic shipments, and the delivery time took about 7-10 days. The newly launched semi-trusted model uses spot shipments from the United States, directly eliminating the two major processes of domestic head-leg and trunk logistics, and compressing the logistics time to the extreme. Moreover, most of the overseas warehouse stocks are long-lasting standard products, which are not only of high quality, but most of them are higher value and popular in the market. With the launch of TEMU's book-to-book business, consumers will find that in addition to the extremely low price, Temu can also take into account high quality and a pleasant shopping experience.

In addition, some categories that are difficult to sell through the full-hosted model of direct shipment from China will also find growth opportunities in Temu through the opening of "semi-hosted" at any time. The "book-to-book delivery" model launched this time will undoubtedly clear the obstacles for large items such as furniture and home appliances that are stocked in overseas warehouses to land on Temu, allowing Temu to take a solid step towards becoming a true "full-category platform".

For sellers with large inventories, there is a new way out for the overseas backlog of inventories, providing an opportunity for merchants to reshape their business rhythm. Some Amazon sellers have a large backlog of inventory locally that cannot be handled. The launch of TEMU's book-to-book model not only adds a new sales channel for sellers, but also helps merchants clear local inventory. In addition, Temu's rich promotional activities and long year-end promotion period can be coordinated with the promotional rhythm of other platforms, bringing merchants a long-term explosion of orders that is almost "Black Friday all year round", providing an opportunity for merchants to reshape their business rhythm.

In addition, "bill-to-bill delivery" not only brings benefits to merchants, but Temu's huge increase in order volume will also bring sustained growth to logistics providers and payers who provide comprehensive fulfillment services, allowing the dividends of the platform's rising period to overflow to more links in the industrial chain.

Open the bonus entrance and embrace more possibilities

At the beginning of 2023, Temu quickly opened up the US market with two 30-second advertising spots during the US Super Bowl. According to the 2023 US App Store app download rankings released by Apple, Temu has surpassed a series of apps such as TikTok, Instagram, Google, and YouTube in the free app download list, and has topped the list. It is reported that TEMU will continue to advertise in the US Super Bowl in 2024. The launch of semi-hosting is believed to be just the first step for TEMU to "show its strength". In 2024, TEMU has set a goal of US$30 billion in GMV for itself, which is more than twice the expected transaction volume in 2023, and TEMU's advertising budget will far exceed 2023. Open the bonus entrance and embrace more possibilities. By joining forces with sellers with local fulfillment capabilities, Temu will find greater value anchor points and competitiveness in the international market, thereby gaining a foothold in the fierce competition and finding a development path to continue the myth of high-speed growth.