{"id":1546783,"date":"2024-12-19T18:11:41","date_gmt":"2024-12-19T23:11:41","guid":{"rendered":"https:\/\/www.practicalecommerce.com\/?p=1546783"},"modified":"2024-12-20T06:09:07","modified_gmt":"2024-12-20T11:09:07","slug":"temus-u-s-seller-program-is-a-dtc-opportunity","status":"publish","type":"post","link":"https:\/\/www.practicalecommerce.com\/temus-u-s-seller-program-is-a-dtc-opportunity","title":{"rendered":"Temu’s U.S. Seller Program Is a DTC Opportunity"},"content":{"rendered":"

Direct-to-consumer brands eager to find customers have an opportunity with Temu, China’s rapidly growing discount marketplace.<\/p>\n

In February 2024, Temu launched a U.S. Seller Program<\/a>, effectively opening the platform to American businesses. The program gives U.S. brands access to an estimated 185 million domestic and international shoppers each month \u2014 and growing.<\/p>\n

In 2023, Temu became Apple’s most downloaded free application and dominated the iOS and Android app stores in 2024.<\/p>\n

\"Screenshot<\/a>

The Temu U.S. home page focuses on discount items.<\/p><\/div>\n

U.S. Seller Program<\/h3>\n

Temu, like its sister site, Pinduoduo<\/a>, operates primarily on a consignment model.<\/p>\n

Chinese and East Asian manufacturers fill Temu’s warehouse with goods and create product listings for the marketplace. When sold, the item is shipped directly from the Temu facility in a familiar, bright orange bag using clever air freight strategies to keep costs low.<\/p>\n

The company recently began allowing American merchants to list products and optionally<\/em> employ Temu’s warehouse and fulfillment system.<\/p>\n

The program is free for small sellers, but a business requires a subscription ranging from 2% to 5% of the selling price. At the time of writing, the marketplace also charged a payment processing fee of 2.9% + $0.30 per transaction, and sellers paid all shipping costs. Collectively, the fees make Temu similar to other marketplaces.<\/p>\n

DTC Opportunity<\/h3>\n

Temu’s low prices<\/a> may not fit traditional retailers, but DTC brands could have an opportunity.<\/p>\n

A DTC product<\/a> is unique. Similar products may exist in Temu, but none are identical. Plus, American-made products might have a competitive advantage owing to perceived value and quality.<\/p>\n

All told, I see five potential benefits for DTC brands selling on Temu.<\/p>\n

Brand building<\/h4>\n

DTC brands on Temu can introduce shoppers to the company and build relationships.<\/p>\n

The introduction happens when a Temu buyer finds the brand’s products. The relationship starts with order fulfillment. DTC sellers could include in the packaging a physical product catalog, a coupon for a free item, or a note describing the brand’s story.<\/p>\n

Items requiring a warranty registration offer the opportunity to collect the buyer’s email address and phone.<\/p>\n

Revenue<\/h4>\n

Any established sales channel is a revenue opportunity. Temu has a massive user base, and those shoppers, discount-oriented as they may be, are the opportunity.<\/p>\n

Temu’s media agency told me the company does not share estimated or average seller revenue. DTC shops should test, optimize, and iterate on the platform.<\/p>\n

Marketing<\/h4>\n

DTC brands listing products on Temu can participate in platform-wide promotions and flash sales, driving traffic to listings and thus more interactions<\/p>\n

Chinese expansion<\/h4>\n

DTC brands can flip the script and offer products to Chinese buyers via inventory stored in Hong Kong or other Temu locations.<\/p>\n

Product development<\/h4>\n

The absence of a Temu listing fee facilitates the testing of new items. DTC brands can create short runs of prototype products, offer them on Temu, and learn what appeals to shoppers.<\/p>\n

Marketplaces Generally<\/h3>\n

Selling on Temu should be part of a general marketplace strategy<\/a> for DTC brands.<\/p>\n

A brand selling on one marketplace can consider others.\u00a0Hence listing on Amazon, Temu, Walmart, Esty, and eBay could all be part of an overall marketplace approach, such as:<\/p>\n