Based on its performance in the first nine months of the year, with the arrival of "Black Friday" and Christmas, Temu may well exceed its annual GMV target of $15 billion.
Recently, Temu has introduced a new agreement to sellers. The 0.5% service fee rate mentioned in the agreement is interpreted as a signal that the platform will start charging commissions.
TikTok's e-commerce business has undergone business adjustments in the past few months. Notably, the platform has introduced a new model for its e-commerce project codenamed Project S. In simple terms, Project S operates with a full custody model. Under the model, merchants are only responsible for supplying goods, while the platform covers operations and fulfillment.
Temu has been in the media spotlight since its launch in the US last September. The online marketplace, which is known for its wide selection of quality and affordable merchandise, has since expanded to Canada, Australia, and New Zealand in quick succession.
E-commerce platform Temu (pronounced tee-moo) made a big splash at this year's Super Bowl with its commercial, "Shop Like a Billionaire."
More than half of the products offered by Temu, a shopping app owned by Shanghai-based internet giant PDD Holdings, have started internal testing in Canada.
PDD Holdings, the multinational commerce group that operates the Pinduoduo and Temu platforms, said that it’s unlikely to sustain current profitability with planned increases in technology investments amid intense industry competition.
SHEIN, a cross-border fast fashion platform based in China, is piloting a model similar to Taobao in Brazil, whereby merchants set up stores directly on the site and are responsible for their own operations and logistics.
Temu sprang onto the US e-commerce scene with a bold claim that it can deliver quality products at affordable prices for just about any budget. Yes, that’s right - "quality" and "affordability" in the same sentence.