In the field of e-commerce, Temu, as a well-known platform, provides a variety of business models including semi-hosting and full-hosting models for merchants to choose from. There are significant differences between these two models in terms of stores, performance, selection, etc. The following will discuss in detail what are the differences between temu semi-hosting and full-hosting?
First, the difference in stores
Full-hosting and semi-hosting are two completely different systems. For merchants (suppliers) who are already fully-hosted, if they want to try the semi-hosting model, they need to re-establish a brand new store. This means that they need to re-carry out a series of operations such as store settings and product listings. This difference is mainly due to the different requirements of the two models for operation and management. In the full-hosting model, merchants are mainly responsible for the supply and production of products, while the platform is responsible for the operation and management of the store; but in the semi-hosting model, merchants need to join the operation and management of the store in large quantities, including order processing.
Second, the difference in fulfillment
Fully-hosted merchants only need to deliver the goods to domestic warehouses, and the rest of the fulfillment actions such as trunk logistics and terminal distribution are handed over to Temu solutions. In this model, merchants only need to focus on the supply and production of goods without paying attention to the details of logistics and transportation. In contrast, semi-hosting is mainly aimed at merchants with goods in overseas warehouses. In this model, merchants import platform orders by themselves, ship to customers (clients) by themselves, and are responsible for reverse logistics such as returns. This model stipulates that merchants have stronger logistics management capabilities and resources to ensure that orders are properly handled and goods are accurately delivered.
Third, the difference in product selection
In the full-hosting model, merchants need to take steps such as fund selection, sample delivery, version review, and drawing review, and their subjectivity is relatively low. This is because the platform needs to conduct a comprehensive selection and review of products to ensure product quality and market adaptability. However, in the semi-hosting model, merchants can skip the steps of selection, sample delivery, version review, and drawing review. , Instead, they put their products in overseas warehouses on the shelves of websites in the United States, Europe, etc. for sale.
Fourth, the difference in pricing power
In the full-hosting model, merchants generally need to follow the platform’s pricing strategy and regulations, but in the semi-hosting model, merchants must independently set prices based on their own costs and market conditions.
Despite these differences between the semi-hosting and full-hosting models, Temu, as a platform, merchants must bear important links in both models such as traffic, advertising, and sales. This means that no matter which method merchants choose, they can enjoy the traffic and advertising resources provided by the platform, thereby increasing product exposure and sales.