In recent years, the competition among major e-commerce companies has become more and more fierce. In addition to Black Friday every winter, there are now big promotions in June and July similar to Prime Day. After Temu Week, Temu news seems to drop a little bit. However, Temu’s overseas customer acquisition promotion through low prices shows no sign of stopping. It continues to follow the path of PDD in China, that is, it relies on low prices and large volumes to make profits. Recently, in Temu’s social media advertisements, it even directly gave new customers the opportunity to get free products, lowering the shopping threshold to a new low.
Looking at the market, these purchase advertisements that are being promoted have driven fierce competition. For example, label printers can be obtained free of charge for new App customers who meet the order requirements. The product description page looks like a metal microphone with a good texture, and new customers of the App who meet the order requirements can also get it for free. There are also many products that can be obtained for free, such as household products and women’s clothing. In addition, there are beauty products, and new customers of the App are $0.44. Women’s shoes, $1.79 for new App customers.
In addition, some Amazon sellers reported that after Prime Day, the order volume has dropped to 20% of the order level on Prime Day. Some sellers also joked that after the big promotion, few orders came. After analysis, the market pointed out that part of the reason is that summer vacation is relatively off-season, and part of the reason is that Prime Day also overdraws the purchasing needs of some consumers. There is also a part of the reason, which is probably related to Temu’s fierce promotion operation of free products and free delivery.
Sellers who are low-value, light and small, and off-standard products, and whose purchase targets are low-income families, have to be extra careful now. As the number of users accumulates, Temu’s impact on the market is bound to increase. Other platforms, such as Amazon, Wal-Mart and other cross-border e-commerce platform sellers, under such fierce competition, they need to find their own market positioning. Temu is a platform aimed at the low-end market, and it is PDD in China. Other platforms should tap their own target customer groups, and accurately promote and advertise their own customer groups and products.
If each platform competes with Temu, and everyone rushes to make $0 purchases and other activities, it will be a very bad development plan for platform sellers in the long run. Now it is more necessary to consider platform-oriented mid-to-high-end customers and better explore their needs. Platforms and merchants should do a good job in product differentiation, speed up the pace of upgrades and iterations, and divide customer groups more accurately. Otherwise, under the the large traffic of competition, homogeneous products are completely uncompetitive on the Amazon platform. This will cause various e-commerce companies to involve and stagnate. For the entire e-commerce market, the strategy that should be pursued is to let a hundred flowers bloom, rather than all being involved in one kind of market. Platforms and sellers should gradually have a clear plan for their product positioning, and don’t blindly pursue high-traffic products while ignoring product diversity.
