Josh Silverman, CEO of Etsy, joins the conversation to explore the looming competition between Amazon and rising e-commerce star Temu. He discusses how Temu's unique model of low-cost products from China, combined with strong advertising, poses a challenge to established giants. The dialogue dives into Etsy's role amidst this shifting landscape, highlighting its focus on handcrafted goods while navigating aggressive pricing strategies. Silverman also reflects on how emerging players could redefine consumer experiences and market dynamics.
T-Moo's direct shipping model from Chinese factories offers duty-free goods under $800, reshaping the US e-commerce landscape with lower prices.
Etsy differentiates itself from T-Moo by focusing on unique artisanal products and brand loyalty amidst rising competition.
Deep dives
T-Moo and Amazon Compete in Retail Race
T-Moo and Amazon engage in a race to win over customers in America, with T-Moo offering 11,000 beads for $15.29, competing against Amazon's 5,000 beads for £19.99. T-Moo's delivery estimates suggest longer wait times but attract customers with affordable prices. Despite slower delivery, Americans favor T-Moo for cheaper goods, potentially reshaping e-commerce in the US.
T-Moo Business Model and Marketing Strategy
T-Moo leverages a direct shipping model from Chinese factories, offering goods duty-free under $800, leading to lower prices. T-Moo's marketing strategy includes gamification on its platform, with roulette wheels and interactive features enticing customers. Influencers share tips on obtaining free items through the platform, albeit at a cost to PDD of roughly $10 per item sold in America.
Ethical Concerns and Congressional Scrutiny
T-Moo faces criticism over potential forced labor in its supply chains, notably from China's Xinjiang province. Despite denial of allegations, US lawmakers express concerns and ponder legislation on Chinese apps. Amid allegations, T-Moo gains a 1% share of the US e-commerce market, challenging existing players.
Etsy's Response to E-Commerce Competition
Etsy positions itself against T-Moo with a focus on unique artisanal items and differentiated offerings over commoditized goods. Etsy navigates rising marketing costs and competition for visibility in Google auctions. CEO Josh Silverman expresses confidence in Etsy's brand loyalty and unique value proposition amid market challenges.
Amazon started with a plan to disrupt bookselling. It sold cheap books online, delivering them straight to customers’ homes. Three decades later it employs a million people in America and owns one hundred warehouses, each stocked with millions of products. More than a third of the US e-commerce market flows through it. Now, another company has spied an opportunity to disrupt Amazon: Temu. The Chinese e-commerce giant wants to undercut its US rival, delivering impossibly cheap stuff to Americans straight from factories in China. How worried should Amazon be?
Hosts: Alice Fulwood, Mike Bird, Tom Lee-Devlin. Guests: Wendy Woloson of Rutgers University-Camden; Mark Shmulik of Bernstein; Michael Morton, an e-commerce analyst at MoffettNathanson; and Josh Silverman, CEO of Etsy.