Benzinga - by Michael Cohen, Benzinga Editor.
In a strategic move, Temu, the e-commerce platform owned by Chinese conglomerate Pinduoduo Holdings, is now inviting sellers with U.S.-based warehouses to join its platform. This development signifies a notable shift from Temu’s previous model, which primarily involved shipping products directly from China.
Previously, Temu operated under a “managed marketplace” framework, centralizing inventory in Chinese warehouses before shipping globally. This approach often led to extended delivery times but offered the benefit of lower prices.
In contrast, the new strategy empowers U.S. sellers to manage their own fulfillment and logistics, promising faster delivery times to consumers. Temu is distinguishing these offerings with a “local warehouse” badge on product listings and storefronts. Business Insider reports.
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The adjustment not only aims to reduce shipping durations but also allows for the inclusion of bulkier and more expensive items on the platform. Analysts from Bernstein highlight this shift as a strategic move to mitigate the risks associated with long-haul shipping costs and international logistics volatility, according to Business Insider.
Market research indicates a strong interest from U.S.-based Amazon.com Inc (NASDAQ:AMZN) sellers to explore opportunities on Temu, driven by the allure of a new customer base. However, initial observations by Marketplace Pulse suggest that the early adopters of Temu’s U.S. marketplace are predominantly Chinese sellers with American storage facilities, rather than domestic U.S. brands.
By offering quicker shipping alternatives, Temu is positioning itself as a formidable competitor against established U.S. e-commerce giants like Amazon. Despite its rapid growth, Temu is striving to bridge the gap in sales volume with its American counterparts.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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