In September 2022, a new player—Temu—entered the e-commerce arena. Five months later, it became the most downloaded app among millions of U.S. consumers.
So what is Temu? And how did it start this big fuss?
eComEngine answered these questions and provided all other information Amazon sellers need to know about this new platform.
📳 What's the fuss about?
Temu is a Boston-based online retailer owned by PDD Holdings, a China-based company that also operates the second-largest online marketplace in the country.
Like other e-commerce platforms, Temu offers a wide selection of products. In its Super Bowl debut in February, it launched the slogan "shop like a billionaire," which got people curious enough to download the app.
🥊 Temu vs. Amazon
Being shiny and new, Temu has indeed charmed buyers. But what does it offer for sellers like you?
Let's compare it with the queen of the e-commerce jungle, Amazon:
- Age and reputation
Amazon: founded in 1994 and is one of the biggest and best-known businesses.
Temu: the newest e-commerce platform and has received mixed feedback from consumers.
- Products and marketplaces
Amazon: lists 33 main product categories and over 25,000 subcategories. Amazon also has 21 marketplaces across the globe.
Temu: has 29 main product categories and 250 subcategories and currently operates in Canada and the U.S.
Amazon: known for its low prices.
Temu: this worthy opponent has a wide network of Chinese manufacturers that can drive the prices of goods especially low.
Amazon: offers 30-day returns, but buyers shoulder shipping fees unless there's an issue with the product.
Temu: covers 90-day refunds and delivery fees for returns.
- Shipping and fulfillment
Amazon: the FBA fulfillment method remains unparalleled in efficiency.
Temu: currently ships most orders for free. However, Temu's sellers are mostly in China, so deliveries take longer to reach U.S. and Canadian customers.
- Seller expectations
Both platforms penalize or ban sellers who don't follow seller expectations and platform policy.
✨ New things are good—only if it suits your needs. Also, it's not always A vs. B. In the e-commerce world, a mix-and-match strategy could be your best shot at optimizing your advantages and benefits.
Can Lightning Deals spark value in your FBA business?
Despite being customer-centric, Amazon still wants you to maximize your sales. So, it grants you access to different sales-boosting tools.
JungleScout features one such tool—Lightning Deals.
⚡What is this tool?
Amazon Lightning Deals are a promotional gimmick that uses urgency to convince people to buy. It offers discounts for about 4-12 hours or until supplies last and can be viewed by eligible buyers on the Today's Deal page.
🚪 How to get in
To participate in Lightning Deals, you must have a Professional Seller account and a 3.5-star rating. But even after you become eligible, you must still take note of some pros and cons of this tool:
- Time-limited discounts boost your sales, but offering huge ones may reduce your profit margins.
- Your products will have increased visibility, but you cannot control when your deal will run.
- It speeds up inventory liquidation but cannot guarantee sales performance. Also, fees are expensive at approximately $150 per deal, regardless of sales.
- If you offer higher discounts than your competitors, you can gain a competitive advantage. But remember, you have millions of competitors.
⚖️ If you think the pros outweigh the cons, you can proceed with creating a deal.
- Go to the Deals page, then click "Create a new deal."
- Choose an eligible product.
- Select a promotion date range.
- Add pricing and unit information.
- Review your deal info and submit.
Does it spark value in your business?
Lightning Deals are an effective way to attract customers and increase brand awareness. But before you use it, you should also consider your marketing strategy, product type, and profit margins.
Not all Amazon tools work for everyone. So, you have to pick which suits your brand model to maximize not only your sales but also your business potential.
BITES OF THE WEEK
- If you’re running some ad campaigns on Pinterest, there’s unlucky news. Brands are pulling back their ad spend due to the platform’s weak performance. - ModernRetail
- Amazon takes its fulfillment game one step further by decentralizing its fulfillment network. CEO Jassy says it’s a way to speed up and cheapen deliveries. - eCommerceBytes
- Instagram dresses up Reels with three new features: a trends section, easier editing, and an expanded gifting option. - Meta
- The Amazon marketplace is a big arena to grow your brand. You can use it four ways to achieve your business goals. - Entrepreneur
- Amazon’s annual Pet Day is happening today. And you don’t need Prime membership to enjoy the biggest discounts and shipping deals! - eCommerceBytes
Are FBA refund policies being exploited?
In a letter to EcommerceBytes, a customer raised concerns about a potential refund scam by FBA sellers. He suspects that some sellers exploit FBA refund policies to sell counterfeit items and have Amazon refund the buyers.
📦 What raised this suspicion?
The customer purchased a product marked "Prime" from a 3P seller. The item turned out to be a counterfeit despite being delivered in an Amazon-branded bubble mailer.
He then requested a refund, which was immediately granted. But the suspicious bit was the removed negative reviews, probably because Amazon assumes responsibility for the items.
The letter sender didn't specify the concerns of negative product ratings. Still, he believes that the seller purposely sends counterfeit items to Amazon FBA.
💭 Is this refund scam feasible?
Most sellers in the thread don't believe so because when a customer requests a refund for inauthentic products, Amazon sends a Product Authenticity complaint. The concerned seller then has to provide evidence of its authenticity.
Moreover, sellers attest that all refunds come from their pockets.
Amazon has been taking solid countermeasures to battle counterfeiting. So feasible or not, the retail giant will likely investigate this matter.
Patents vs. Trademarks vs. Copyrights: What's the difference?
With the increasing cases of intellectual property (IP) infringements on Amazon, real and fake, being familiar with IP terms can save your account from being suspended.
📖 JD Supra defined the key IP terms to help you avoid this legal “minefield.”
- Patents - grant the owner exclusive rights to make, use, sell/offer to sell, or import an invention. Amazon sellers should be aware of two types of patents: utility (protection for product function) and design patents (protection for product appearance).
- Trademarks - act as brand identifiers like logos and brand names. Its subsection, trade dress, protects the design of a product (ex. shape of a Coke bottle). One common seller mistake is putting a trademark on a third-party product without authorization from the owner.
- Copyrights - protect the expression of an idea. Copyright-protected content on Amazon includes user manuals, product listings and descriptions, and visuals like photos and videos.
While Amazon has several IP enforcement tools, you should also do your part in fighting infringements on the platform by:
- Informing the public of your authority using the necessary symbols (™, ©, Ⓡ).
- Registering your brand with the U.S. Patent and Trademark Office (USPTO) to enforce the trademark on Amazon and federal court.
- Creating original content for your Amazon storefront and product pages to avoid infringement.
IP violations are no joke. Committing one, even if unintended, could be punishable by law.
🛡️ But protecting your IP is equally essential. Feel free to share how you protect your IP by replying to this email.