TEMU is a highly anticipated cross-border e-commerce platform that bridges domestic and foreign buyers and sellers and promotes e-commerce transactions worldwide. However, for manufacturers, whether they can make a profit on TEMU is a controversial issue.
1. Challenges of TEMU to manufacturers.
On the TEMU platform, it is not easy for manufacturers to enter the e-commerce field and pursue profits for the following reasons:
1. Fierce price competition: TEMU’s Chinese procurement department directly purchases and obtains the factory’s bottom price through multiple price comparisons, which compresses the profit margins of foreign trade middlemen. The added value that manufacturers need to provide is limited, and their main responsibilities include uploading product pictures, handling inventory, shipping, and assuming the risks of credit and return. Price has become a winning magic weapon, but this competition also puts manufacturers under pressure to continuously lower prices, which may cause losses to some companies.
2. High quality and reputation requirements: TEMU focuses on product quality and seller reputation, which puts higher requirements on manufacturers. If the product quality does not meet the standards, it may face returns and customer complaints, which will affect the seller’s reputation and goodwill. Therefore, manufacturers need to ensure product quality and invest more time and resources to meet this requirement.
Second, TEMU sellers’ way to make money.
Despite the challenges, the TEMU platform still provides manufacturers with many opportunities to make profits. Here are some ways to succeed:
1. Optimize products and pages: TEMU sellers should optimize products and pages according to the requirements of the platform and the needs of buyers. Clear product pictures, detailed product descriptions and accurate keywords can help increase product exposure and conversion rate. Reasonable pricing, excellent customer service and active collection of good reviews can also increase the credibility and reputation of products.
2. Utilize marketing tools: TEMU provides a variety of marketing tools, and sellers should make full use of these tools to increase their traffic and sales. Through advertising, sellers can improve product rankings and exposure. Through promotional activities, more buyers can be attracted and order volume can be increased. With the help of social media, sellers can expand brand influence and customer loyalty.
3. Manage logistics and after-sales: Sellers should ensure good logistics and after-sales service to increase buyer satisfaction and repurchase rate. Choosing a suitable logistics company or warehousing service provider can help reduce transportation costs and time. Provide multiple payment methods and currency options to facilitate buyers’ settlement. Timely handling of buyers’ inquiries and complaints helps to safeguard buyers’ rights.
The key to TEMU sellers’ profitability lies in market analysis, product optimization, marketing promotion and service guarantee. Only by performing well in these aspects can they stand out in the fierce competition and achieve long-term development. TEMU provides manufacturers with a huge market opportunity, but it also requires them to actively respond to challenges and continuously improve their competitiveness to achieve sustainable profitability.