In the field of e-commerce, a reasonable pricing strategy is crucial to the success of both the platform and the merchants. Temu’s fully managed model has a unique method and process for pricing. The pricing method of Temu’s fully managed model will be introduced in detail below.
1. Merchants need to provide products to Temu. This is the starting point of the entire pricing process. Merchants should carefully select products with market potential to ensure that their quality, functions and characteristics can meet the needs of consumers. While providing products, merchants also need to negotiate with Temu to determine a supply price.
The determination of this supply price requires comprehensive consideration of multiple factors, such as the production cost of the product, market competition, and the expected profit of the merchant. Merchants need to provide a competitive supply price while ensuring their own interests to attract Temu to choose their products.
2. Temu platform will conduct comprehensive considerations and calculations based on its own pricing strategy and market demand. Temu will fully consider logistics costs, including transportation, warehousing, and distribution costs of goods. Taxes are also factors that cannot be ignored. Tax policies in different countries and regions are different, and they need to be accurately calculated and included in pricing considerations. In addition, operating costs such as platform promotion costs and management costs also need to be allocated to each product. Finally, Temu will reserve a certain profit margin to ensure the sustainable development of the platform. After comprehensively considering these factors, Temu will formulate a retail price suitable for the target market. This retail price must be able to cover costs and profits, and must be competitive in the market to attract consumers to buy.
3. When the goods are put on sale, the price consumers see is the retail price set by the Temu platform, rather than the supply price directly provided by the merchant. On the one hand, consumers usually pay more attention to the final purchase price rather than the merchant’s supply price. The setting of the retail price can be flexibly adjusted according to market demand and competition to better meet consumer needs and improve sales results. On the other hand, holding the pricing power in the hands of the platform is also conducive to the platform’s unified management and regulation of the entire market to ensure the rationality and stability of prices.
4. For merchants, through the agreement reached with Temu, they can obtain the difference between their supply price and retail price as profit. This means that merchants do not need to bear the costs and risks of order operation, logistics distribution, after-sales service and other links. Merchants can focus more on product development and supply, improve product quality and supply efficiency. At the same time, this model also provides merchants with a relatively stable profit model. As long as their products can be selected by Temu and successfully sold, merchants can obtain stable profits.
In short, the pricing method of Temu’s full-hosting model is a complex but scientific and reasonable system. Through the cooperation between merchants and the platform, as well as comprehensive consideration of various factors, reasonable pricing and sales of products are achieved. This model provides convenience and opportunities for both merchants and consumers, and also provides new ideas for the development of the e-commerce industry.