Temu has taken South Africa by storm and it is no wonder why local e-commerce store owners are worried. We have explored some of the major features and benefits that Temu has to offer. We also did a quick comparison to see how they compete with one of the leading e-commerce giants, Amazon.

What is Temu?

Temu is an online marketplace similar to Takealot, Shein or Wish, known for its incredibly low prices on a wide variety of products. It’s owned by PDD Holdings, a Chinese e-commerce giant. Here’s a quick rundown of Temu:

• Products: They sell almost everything you can imagine, from clothes and electronics to home goods and beauty products.
• Prices: The main draw is the deep discounts. Think R60 shoes, R20 jewelry, and R100 Hoodies.
• Shipping: Most items are shipped directly from China, so expect longer wait times.
• Reputation: While it’s a legitimate platform, there have been some reports of issues like undelivered packages, incorrect orders, and difficulties with customer service.

When Was Temu Launched?

They launched in South Africa on January 17, 2024. They are expanding rapidly and are now in 49 countries total. This includes regions in Asia, Europe, North America, South America, Oceania, and Africa. While they are a relatively new company, they have grown quickly and are now the second most visited e-commerce platform globally according to SimilarWeb, only behind Amazon.

Temu’s disruptive influence on the e-commerce landscape can be attributed to its aggressive pricing strategy and effective use of social media marketing. Their deep discounts and gamified promotional offers have attracted a budget-conscious customer base.

Is Temu a threat to my eCommerce store?

Temu’s influence to your business depends on your niche and business strategy. Here’s a breakdown of both sides:

Temu’s presence should be a wake-up call to evaluate your e-commerce strategy. Instead of fearing them, focus on your strengths and explore ways to adapt. Here are some ideas and areas of your business you can look at:

Your niche: Temu focuses on very competitively priced, often trend-driven products. If your store competes in this space, especially with generic items, Temu could be a challenge.

Your competitive advantage: If your store offers unique products, excellent customer service, a curated experience, or other benefits beyond just price, Temu may be less of a threat.

Temu’s staying power: It’s still early days for Temu, and it’s not clear if they can maintain their aggressive marketing and ultra-low prices.

Here’s a breakdown of Temu’s potential impact:

Threats

• Price: Known for rock-bottom prices, which can be difficult to compete with.
• Growth: Temu has seen explosive growth, and they could capture a significant share of the market, especially for price-conscious shoppers.
• Convenience: Temu offers a user-friendly app for easy shopping.

Opportunities

• Focus on value: If you can’t compete on price alone, highlight the value you offer beyond just cost, such as quality, service, or expertise.
• Target a different audience: If they attracts budget-focused shoppers, you can target those who prioritize other aspects of the shopping experience.
• Improve your offerings: Look for ways to differentiate your store, such as offering unique products, a curated selection, or exceptional customer service.

Overall, Temu may be disruptive, but it’s not necessarily an existential threat. By understanding your competitive advantage and focusing on what makes your store unique, you can position yourself for success even in a crowded marketplace.

TEMU VS AMAZON: How they compare

Looking at these two e-commerce giants we have done a quick comparison to help you decide what option will work best for you.

Price

• Temu: Known for significantly lower prices, often 60-80% cheaper than Amazon for similar items. This is because Temu uses a drop-shipping model and lower seller fees.
• Amazon: Wider range of prices depending on the product and seller. Generally more expensive than Temu.

Product Selection:

• Temu: Focuses on general merchandise across categories, often with trendy or fast-fashion items. More limited selection of established brands.
• Amazon: Huge selection of products across all categories, including a vast array of established brands.

Delivery

• Temu: Slower delivery times compared to Amazon, especially for standard shipping options.
• Amazon: Generally faster delivery times, with options for expedited shipping through Prime memberships.

Returns

• Temu: Offers a 90-day return policy, but the return process may be less convenient than Amazon.
• Amazon: 30-day return policy with a well-established return infrastructure.

Other factors

• Amazon: More established platform with additional features like Prime membership benefits, reviews, and cloud services.
• Temu: Newer platform with a focus on user-friendly app and social media integration.

In Conclusion?

• Choose Temu for the absolute best price and if you don’t mind waiting for delivery and potentially having a less established brand.
• Choose Amazon for a wider selection, including established brands, faster shipping options, a more convenient return process, and additional features like Prime benefits.