Limited Supply

S8 E9: Temu Has the Power to Take Down Wayfair, Etsy, and Amazon— Here’s Why

Jun 20, 2024

Temu, a Chinese drop shipping company, poses a threat to e-commerce giants. Discussion on strategies for competition, Outdoor Voices' revival, and DTC acquisitions. Exploring the impact of the direct-to-factory model on retail industry and arbitrage opportunities. Insights on the free plus shipping model, Amazon returns, and making money from textbooks.

45:53

Episode guests

Temu

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Highlights

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Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Etsy offers Teemu products, signaling a shift to higher-priced similar items.

Amazon liquidates returned items, creating mystery boxes for potential profits.

Arbitrage opportunities arise in e-commerce from buying liquidated goods and auctioned palettes.

Deep dives

Etsy Becoming Teemu with Higher Prices

Etsy is becoming Teemu by selling 30% of Teemu's top women's clothing and 19 of the top 25 jewelry items, often at higher prices than Teemu. This showcases a shift towards pricey but similar products on Etsy compared to Teemu.

Learning from business closures

01:19

Focus on Building a Strong Brand and Product Line

02:33

Identifying E-commerce Arbitrage Opportunities

01:29

Turning arbitrage into a valuable email list

01:44

Intro

2min

Preparations for Summit Participation and Discussion on Various Business Topics

2min

Strategies for Revitalizing Outdoor Voices and Other Brand Acquisitions

18min

Investing in Second Time Founders and a Sponsor Ad for Fulfill .io

3min

Impact of Direct-to-Factory Model on Retail Industry

14min

Evolution of Free Plus Shipping Model and Amazon Returns

4min

Making Money from Textbooks and Office Comparisons

2min

Goodbye, Shopify. See ya later, Etsy. Hasta la vista… Amazon???\

Yeah, we said it. Temu has the power to compete with Amazon. Has the Chinese drop shipping company grown too powerful to defeat? Or can our old-school favorites find a way to slay the DTC giant? Nik and Moiz discuss the looming threat of Temu to several major e-commerce retailers. What strategies do they need to stay relevant?

Plus, what would it take for Outdoor Voices to crawl out of the grave they dug themselves into? Hear us out— it’s definitely not impossible...

The guys also discuss the latest acquisition of Asian noodle company, Omsom, by DDC. What, if anything, does it mean for other Asian DTCs like immi, FLY BY Jing, and Sanzo?

And later in the episode, Nik declares arbitrage. When is it okay to use arbitrage in the DTC community, and are there any ethical concerns? Well, if we know anything… at the very least, we definitely know where Moiz stands on the issue.

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Want more DTC advice? Check out the Limited Supply YouTube page for more insider tips.

Check out the Nik’s DTC newsletter: https://bit.ly/3mOUJMJ

And if you’re looking for an instant stream of on-demand DTC gold, check out the Limited Supply Slack Channel for Nik and Moiz’s most unfiltered, uncensored thoughts.

Follow Nik:

Twitter: https://www.twitter.com/mrsharma

Follow Moiz:

Twitter: https://www.twitter.com/moizali

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Limited Supply

S8 E9: Temu Has the Power to Take Down Wayfair, Etsy, and Amazon— Here’s Why

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Etsy Becoming Teemu with Higher Prices

Auctioning Amazon's Liquidated Returns

Arbitrage Opportunities in Returns and Liquidations

Creative Reuse of College Textbooks

Ethical Questions in Potentially Bribery Deals with Amazon

Learning from business closures

Focus on Building a Strong Brand and Product Line

Identifying E-commerce Arbitrage Opportunities

Turning arbitrage into a valuable email list

Remember Everything You Learn from Podcasts