Highlights
- Amazon and Temu both operate on different business models.
- Sellers have opportunities to grow on Amazon, while Temu eliminates the middlemen.
- Temu offers cheaper products while Amazon has higher prices due to sellers adding profit margins.
- Amazon is leading due to its Prime benefits while Temu is quickly growing, appealing to price-conscious customers.
- Amazon is known for its reliable delivery, while Temu low prices can result in slower shipping and potential quality concerns.
Temu and Amazon are the major e-commerce giants. Though Temu emerged recently it is growing at a rapid pace. Both platforms stand out in the online market for their own reasons. Where Amazon covers a wide range of products from retail to luxury items, Temu focuses on product pricing with the aim of removing the middleman.
With the sudden expansion of Temu in the online world, knowing all about Temu vs Amazon is quite important for both consumers and sellers.
The Basic Distinction
Amazon has been here for decades now as the best in the e-commerce world. It caters to a huge audience from shoppers to sellers to web developers and other businesses. So, you will always have the marketplace regardless of your business kind.
Temu on the other hand, is relatively new in the market. It was launched in 2022 by Pinduoduo with a unique approach. Its focus is on low-priced products that connect consumers to the manufacturers. Its model is different from Amazon where sellers buy products from manufacturers and sell them with a certain profit margin.
With Amazon and Temu different business models, it is yet to see who wins this e-commerce battle. Anyways, we will see a detailed comparison of both platforms in this guide, so let’s get started.
Temu vs Amazon
In the picture below there is a quick overview of Amazon vs Temu.
Prices
Temu operates directly with Chinese manufacturers. Due to this direct operation with manufacturers, the prices on Temu are quite reasonable in fact they are cheap. Temu follows the “de minimus rule” that allows products that cost under US 800 dollars shipped without import duties.
Sales
Though Temu came strong in the e-commerce world, Amazon is still at the top due to its vast experience, background, and well-established customer base. Moreover, it offers a vast product selection that’s also a plus.
However, Temu sales vs Amazon are growing among price-conscious customers. But still, it is nowhere near Amazon as its extensive logistics network and prime benefits maintain its sales and keep it ahead in this game.
Quality
Amazon has established its reputation for its reliable and timely product delivery and prompt customer service. It ensures a consistent quality and experience for its customers earning their loyalty.
On the other hand, Temu’s focus on the price can result in poor quality and late shipping sometimes. Buyers on Amazon are advised to carefully read the product reviews so they can set expectations accordingly.
Ethics
Amazon is not open about its operating procedures so it has faced scrutiny over its labor practices and environmental impacts. On the other hand, Temu’s focus on ultra-low pricing is also a big question mark about product quality and labor conditions.
So, both companies have their ethical concerns so you should select the company according to your moral values and priorities.
Market Share
Amazon has a significant place in the e-commerce world that is backed by its strong infrastructure. Also, prime membership plays a great role in maintaining its position.
As a new beginner, Temu on the other hand is going strong in maintaining its position in the global e-commerce market. The contrast between them reflects a wide shift in consumer priorities.
Selling on Temu
If you think you can sell on Temu as a seller then the simple answer is you Can’t. Temu business model is based on eliminating the middlemen, so there is no way you can sell on Temu, at least not yet. However, if you live in China and manufacture products that you can sell to consumers directly, Temu is the platform for you.
According to the Associated Press, Temu will be coming to US and Europe in the near future. However, it is not clear whether the company will be opening its doors to manufacturers or individual sellers, so it’s still not known.
Though as a seller you can’t earn from Temu, you can make money from the platform by joining Temu’s marketing team. There are two ways to do that:
First, you can sign up for Temu’s affiliate program. With this program, you will be given a code that you will share with others, and when someone purchases using that code, you will earn a 20% commission. ‘
Secondly, you can apply for Temu’s influencer program. If you have a strong following base on platforms like TikTok and Instagram. according to Temu their influencers can make up to $500 every other month with $100,000 in monthly affiliate cash and $1,000 in free products.
Selling on Amazon
Selling on Amazon is quite simple. All you need to start is creating an account. You can set up your seller account on the Amazon’s website. You will have to provide the necessary information and set up a verification call to finalize your account.
Secondly, you will conduct product research to launch your own business. Some of the ways through which you can find products to sell are:
- Amazon Bestseller List: You can take the product ideas from frequently sold items or from the ones that have Amazon’s choice badge.
- Google Trends: You can monitor Google trends and take your niche idea from frequently searched items.
- Social Media: You can take the niche idea by exploring influencers and using hashtags.
- Professional Service: If you want to have a strong start, you can get assistance from a full-service Amazon agency. Their expertise and experience will help you in finding the niche with a strong growth potential.
After selecting the product, you need to see where you will collect the products. Many suppliers are present across the web one prominent among them is Alibaba which offers a variety of products. However, it is important to verify the supplier’s reputation, minimum order, and shipping costs, to find the best terms.
Once the product is selected, now comes the time of product listing. It holds extreme significance as it determines your success on Amazon. This is where you need the assistance of an Amazon agency to boost your product sales.
The last step involved in selling on Amazon is the fulfillment of orders. You can choose FBA which eliminates the hassle of packing and shipping orders for sellers. Also, you have the option of drop shipping and fulfill your orders on your own.
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