Direct-to-consumer manufacturers keen to search out prospects have a possibility with Temu, China’s quickly rising {discount} market.
In February 2024, Temu launched a U.S. Seller Program, successfully opening the platform to American companies. This system offers U.S. manufacturers entry to an estimated 185 million home and worldwide consumers every month — and rising.
In 2023, Temu grew to become Apple’s most downloaded free utility and dominated the iOS and Android app shops in 2024.
The Temu U.S. dwelling web page focuses on {discount} gadgets.
U.S. Vendor Program
Temu, like its sister website, Pinduoduo, operates totally on a consignment mannequin.
Chinese language and East Asian producers fill Temu’s warehouse with items and create product listings for {the marketplace}. When offered, the merchandise is shipped immediately from the Temu facility in a well-known, vivid orange bag utilizing intelligent air freight methods to maintain prices low.
The corporate lately started permitting American retailers to checklist merchandise and optionally make use of Temu’s warehouse and success system.
This system is free for small sellers, however a enterprise requires a subscription starting from 2% to five% of the promoting worth. On the time of writing, {the marketplace} additionally charged a cost processing price of two.9% + $0.30 per transaction, and sellers paid all delivery prices. Collectively, the charges make Temu much like different marketplaces.
DTC Alternative
Temu’s low prices could not match conventional retailers, however DTC manufacturers might have a possibility.
A DTC product is exclusive. Related merchandise could exist in Temu, however none are an identical. Plus, American-made merchandise may need a aggressive benefit owing to perceived worth and high quality.
All instructed, I see 5 potential advantages for DTC manufacturers promoting on Temu.
Model constructing
DTC manufacturers on Temu can introduce consumers to the corporate and construct relationships.
The introduction occurs when a Temu purchaser finds the model’s merchandise. The connection begins with order success. DTC sellers might embrace within the packaging a bodily product catalog, a coupon for a free merchandise, or a notice describing the model’s story.
Gadgets requiring a guaranty registration provide the chance to gather the client’s e-mail deal with and cellphone.
Income
Any established gross sales channel is a income alternative. Temu has an enormous person base, and people consumers, discount-oriented as they might be, are the chance.
Temu’s media company instructed me the corporate doesn’t share estimated or common vendor income. DTC outlets ought to check, optimize, and iterate on the platform.
Advertising and marketing
DTC manufacturers itemizing merchandise on Temu can take part in platform-wide promotions and flash gross sales, driving site visitors to listings and thus extra interactions
Chinese language enlargement
DTC manufacturers can flip the script and provide merchandise to Chinese language consumers by way of stock saved in Hong Kong or different Temu places.
Product improvement
The absence of a Temu itemizing price facilitates the testing of latest gadgets. DTC manufacturers can create quick runs of prototype merchandise, provide them on Temu, and be taught what appeals to consumers.
Marketplaces Usually
Promoting on Temu ought to be a part of a general marketplace strategy for DTC manufacturers.
A model promoting on one market can take into account others. Therefore itemizing on Amazon, Temu, Walmart, Esty, and eBay might all be a part of an general market strategy, similar to:
- Set marketplace-specific goals. Outline income targets, buyer acquisition charges, or brand awareness metrics for every market.
- Set up market audiences. Use analytics to be taught buyer demographics and buying conduct on a per-marketplace foundation. A Temu shopper will seemingly differ from one on Amazon or Walmart.
- Align merchandise with {the marketplace}. A model may need a number of variations of comparable gadgets. Maybe the fine quality items are on Amazon and entry-level gadgets on Temu. Returns and seconds might promote on eBay.
- Optimize product listings. Widespread optimization techniques throughout all marketplaces embrace high quality photos, keyword-rich descriptions, and aggressive costs. However take note platform-specific practices, conventions, and guidelines.
