The Impulso Podcast E56: Temu to allow US local sellers from Mar 15, targeting Amazon?
13 snips
Jan 26, 2024 Wei Han, an e-commerce analyst and author of the Who is Temu report, joins the discussion about Temu's upcoming local seller service set to launch in the U.S. on March 15. He explores Temu's shift from a full consignment model to a semi-consignment approach, highlighting its operational efficiencies and the implications for U.S. logistics. The debate heats up as they consider whether this move positions Temu as a competitor to Amazon or if it will carve out a new niche, while contrasting its strategies with TikTok Shop's unique model.
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Temu's Local-To-Local Model Launch
- Temu will offer a semi-consignment "local-to-local" model allowing merchants with inventory already in destination markets to handle fulfillment and returns themselves.
- The pilot is expected to launch in the U.S. on March 15 and expand to Europe by end of March.
Contrast With Temu's Full-Consignment Model
- Previously Temu operated a strict full-consignment model where merchants shipped samples and Temu handled everything from store setup to fulfillment.
- The new option shifts responsibilities like pricing, inventory and returns back to merchants who already hold stock overseas.
Huge U.S.-Based Supply Reservoir
- Tapping sellers who already hold inventory in the U.S. unlocks a large supply pool of Chinese merchants already selling on Amazon and eBay.
- This can drastically reduce shipping times versus Temu's cross-border model and improve competitiveness against local marketplaces.
