In-depth analysis: the difference between temu fully managed mode and semi-managed mode

In the context of the current rapid development of the e-commerce industry, temu, as a well-known e-commerce platform, has launched a fully managed model and a semi-managed model, which has attracted widespread attention in the market. Although the two models appear to be similar on the surface, they are actually significantly different in many aspects and have a profound impact on sellers’ operations and the entire e-commerce ecosystem. Below is a detailed explanation of these two modes.

1. Differences in store structure

The fully managed and semi-managed models are divided into two independent systems. For sellers who have already joined the fully managed model, if they want to transform to the semi-managed model, they need to create a brand new store, which shows that there are clear boundaries between the two models in store management and operation.

2. Differences in fulfillment processes

In terms of contract fulfillment, fully managed sellers only need to send goods to domestic warehouses, and the subsequent trunk logistics and terminal distribution are all undertaken by temu. This allows fully managed sellers to focus more on product selection and supply. The semi-managed model is designed for sellers who have goods in overseas warehouses. Sellers need to be more actively involved. In addition to importing orders to the platform themselves, they also need to ship their own goods and be responsible for reverse logistics such as returns. The difference in this model directly affects the seller’s participation in the logistics process.

3. Differences between listing and product selection

In the fully managed model, merchants need to go through a series of steps such as sending samples, reviewing, selecting products, and reviewing images, and their autonomy is relatively low. In contrast, the semi-managed model allows sellers to directly put products in their overseas warehouses on the shelves in target markets (such as the United States and Europe), skipping the cumbersome preliminary process and improving the efficiency and flexibility of listing. This gives merchants greater independence and the ability to respond more quickly to market demands.

4. Cost and risk exposure

Merchants in the fully managed model usually face lower operating costs, but are more dependent on the platform and have relatively concentrated risks. Under the semi-managed model, sellers need to bear more logistics management costs and related risks, but this also provides them with greater management rights and potential profit margins. When choosing a model, sellers need to comprehensively consider their own situation and risk tolerance.

5. Concentration of pricing power

Whether you choose the fully managed or semi-managed model, the pricing power is in the hands of the temu platform. This shows that although the semi-custodial model gives sellers more autonomy to some extent, it is still essentially similar to full hosting.

To sum up, there are obvious differences between temu’s fully managed and semi-managed models in terms of store structure, fulfillment process, listing steps, costs and risks. Sellers need to comprehensively consider their actual needs when choosing a suitable operating model to obtain better development opportunities in the increasingly competitive e-commerce environment.