{"id":6117,"date":"2023-08-30T16:55:00","date_gmt":"2023-08-30T08:55:00","guid":{"rendered":"https:\/\/blog.nexussup.com\/?p=6117"},"modified":"2025-04-08T17:12:25","modified_gmt":"2025-04-08T09:12:25","slug":"temu-and-amazon-a-battle-of-innovation","status":"publish","type":"post","link":"https:\/\/blog.nexussup.com\/?p=6117","title":{"rendered":"Temu and Amazon: A Battle of Innovation"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Expanding Markets and Bold Strategies in 2023<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Temu has been on fire in 2023, relentlessly expanding its overseas market. So far, it has reached 37 countries and regions. Its innovative \u201cfully managed\u201d supply chain model on online platforms has sparked eager attempts from other major platforms.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This year, Amazon has implemented a series of new measures to retain users:<br>\u2022 Increasing the benefits for new sellers joining the platform, ensuring a continuous influx of fresh talent;<br>\u2022 Lowering logistics fees for existing sellers of low-priced items to reduce customer loss on budget products;<br>\u2022 Broadening new buyer traffic channels to compensate for disappearing user segments;<br>\u2022 Offering large-scale discount subsidies to boost repurchase rates among both new and loyal customers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">PART.01 \u2013 The Amazon Contender<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">1. Record-Low Logistics Rates for Low-Priced Items<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Since August 29, 2023, Amazon Logistics in the United States has rolled out a new, lower fee rate for all items priced under US $10. The new rate saves each seller an average of $0.77 per item compared to the standard rate for items of similar size and weight.<br>For sellers, this means significantly reduced logistics costs and enhanced sales opportunities. Buyers also benefit from more choices and a faster delivery experience.<\/p>\n\n\n\n<!DOCTYPE html>\n<html lang=\"en\">\n<head>\n  <meta charset=\"UTF-8\">\n  <title>Shipping &#038; Packaging Fees<\/title>\n  <style>\n    body {\n      font-family: \"Segoe UI\", sans-serif;\n      background-color: #f4f7fa;\n      margin: 40px;\n    }\n    .container {\n      max-width: 1200px;\n      margin: auto;\n      background-color: #fff;\n      padding: 30px;\n      border-radius: 12px;\n      box-shadow: 0 4px 12px rgba(0,0,0,0.1);\n    }\n    h1 {\n      text-align: center;\n      color: #2c3e50;\n      margin-bottom: 20px;\n    }\n    .section-title {\n      font-size: 18px;\n      color: #34495e;\n      margin-top: 30px;\n      margin-bottom: 10px;\n      font-weight: bold;\n    }\n    table {\n      width: 100%;\n      border-collapse: collapse;\n      margin-top: 10px;\n    }\n    th, td {\n      border: 1px solid #ddd;\n      padding: 12px;\n      text-align: center;\n    }\n    th {\n      background-color: #3498db;\n      color: white;\n    }\n    tr:nth-child(even) {\n      background-color: #f9f9f9;\n    }\n    .note {\n      font-size: 13px;\n      color: #888;\n      margin-top: 18px;\n      text-align: center;\n    }\n    .icon {\n      margin-right: 6px;\n    }\n  <\/style>\n<\/head>\n<body>\n\n<div class=\"container\">\n  <!-- \u6807\u9898 -->\n  <h1>\ud83d\udce6 Shipping &#038; Packaging Fees Overview<\/h1>\n  <p style=\"text-align: center;\">\n    (Dimension unit conversion: 1 inch \u2248 2.54 cm; below figures for reference only)\n  <\/p>\n\n  <!-- \u7b2c\u4e00\u90e8\u5206\uff1a\u5305\u88c5\u8d39 -->\n  <div class=\"section-title\">1. \ud83d\udcc3 Envelope &#038; Packaging Fees<\/div>\n  <table>\n    <thead>\n      <tr>\n        <th>Packaging Category<\/th>\n        <th>Dimensions <br>(Inches \/ cm)<\/th>\n        <th>Fee (USD)<\/th>\n      <\/tr>\n    <\/thead>\n    <tbody>\n      <tr>\n        <td>Small Envelope<\/td>\n        <td>9&#8243; \u00d7 12&#8243;<br>(22.9 \u00d7 30.5 cm)<\/td>\n        <td>$3.22<\/td>\n      <\/tr>\n      <tr>\n        <td>Medium Envelope<\/td>\n        <td>10&#8243; \u00d7 13&#8243;<br>(25.4 \u00d7 33 cm)<\/td>\n        <td>$3.45<\/td>\n      <\/tr>\n      <tr>\n        <td>Large Envelope<\/td>\n        <td>12&#8243; \u00d7 15&#8243;<br>(30.5 \u00d7 38.1 cm)<\/td>\n        <td>$3.89<\/td>\n      <\/tr>\n      <tr>\n        <td>Small Box<\/td>\n        <td>up to 8&#8243; \u00d7 8&#8243; \u00d7 8&#8243;<br>(20.3 \u00d7 20.3 \u00d7 20.3 cm)<\/td>\n        <td>$4.12<\/td>\n      <\/tr>\n      <!-- \u53ef\u6839\u636e\u5b9e\u9645\u6570\u636e\u81ea\u884c\u589e\u51cf -->\n    <\/tbody>\n  <\/table>\n\n  <!-- \u7b2c\u4e8c\u90e8\u5206\uff1a10\u6708\u57fa\u7840\u5feb\u9012\u7269\u6d41\u8d39\u7528 -->\n  <div class=\"section-title\">2. \ud83d\ude9a Basic Courier Logistics Fees for October<\/div>\n  <table>\n    <thead>\n      <tr>\n        <th>Weight Range<\/th>\n        <th>Courier Fee <br>(RMB, Excl. Fuel)<\/th>\n        <th>Additional Remarks<\/th>\n      <\/tr>\n    <\/thead>\n    <tbody>\n      <tr>\n        <td>0 &#8211; 1 kg<\/td>\n        <td>\u00a525.00<\/td>\n        <td>Base rate, tracked shipping<\/td>\n      <\/tr>\n      <tr>\n        <td>1 &#8211; 3 kg<\/td>\n        <td>\u00a538.00<\/td>\n        <td>+\u00a58 per additional kg over 2 kg<\/td>\n      <\/tr>\n      <tr>\n        <td>3 &#8211; 5 kg<\/td>\n        <td>\u00a552.00<\/td>\n        <td>+\u00a57 per additional kg over 4 kg<\/td>\n      <\/tr>\n      <!-- \u7ee7\u7eed\u6dfb\u52a0\u5404\u6863\u4f4d -->\n    <\/tbody>\n  <\/table>\n\n  <!-- \u7b2c\u4e09\u90e8\u5206\uff1a\u5408\u5e76\u5bc4\u9001\/\u5176\u4ed6\u8ba1\u8d39 -->\n  <div class=\"section-title\">3. \ud83d\udce6 Consolidated \/ Bulk Shipping Fees<\/div>\n  <table>\n    <thead>\n      <tr>\n        <th>Parcel Size<\/th>\n        <th>Fee (USD)<\/th>\n        <th>Notes<\/th>\n      <\/tr>\n    <\/thead>\n    <tbody>\n      <tr>\n        <td>Large Consolidated Package <br>(e.g., 18&#8243; \u00d7 18&#8243; \u00d7 12&#8243;)<\/td>\n        <td>$8.60<\/td>\n        <td>Suited for combined shipments<\/td>\n      <\/tr>\n      <tr>\n        <td>Oversized Package <br>(Above 150 cm total girth)<\/td>\n        <td>$10.50<\/td>\n        <td>Special handling required<\/td>\n      <\/tr>\n    <\/tbody>\n  <\/table>\n\n  <p class=\"note\">* The data above is for illustration only. Please update the actual rates, dimensions, and fees based on your screenshot or internal system.<\/p>\n<\/div>\n\n<\/body>\n<\/html>\n\n\n\n\n<p class=\"wp-block-paragraph\"><br>(Data source: Amazon backend)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Launch of Buyer Interaction Discount Emails<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Now supporting the \u201cPercentage Off\u201d type of promotion, brand sellers can create promotions that send customized emails with discount codes ranging from 15% to 50% to their fans via the new MYCE email tool.<br>For sellers, this tool enables targeted reminders to brand fans\u2014pushing a discount email to the same customer once every 7 days. This not only boosts campaign effectiveness and deepens brand\u2013fan relationships, but also increases customer stickiness and stimulates further consumption.<br>For buyers, receiving such emails makes them feel valued by the brand and lets them purchase quality products at attractive prices.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">3. Increased Slots for Amazon Outlet Flash Sales<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Since July, Amazon Outlet flash sale slots have gradually increased, inviting more ASINs to join the limited-time promotions with an expected recommendation increase of over 70%.<br>For sellers, Amazon Outlet promotions offer an extra, zero-cost traffic channel, helping clear surplus inventory without incurring additional storage fees.<br>For buyers, these promotions feature a wide range of categories and affordable prices, satisfying the demand for low-cost products.<br>These promotions not only save sellers\u2019 operational time but also free up Amazon\u2019s inventory space, maximizing the recovery of inventory value and keeping overall stock operations healthier.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"776\" src=\"https:\/\/blog.nexussup.com\/wp-content\/uploads\/2025\/04\/640-7-1-1024x776.png\" alt=\"\" class=\"wp-image-6118\" srcset=\"https:\/\/blog.nexussup.com\/wp-content\/uploads\/2025\/04\/640-7-1-1024x776.png 1024w, https:\/\/blog.nexussup.com\/wp-content\/uploads\/2025\/04\/640-7-1-300x227.png 300w, https:\/\/blog.nexussup.com\/wp-content\/uploads\/2025\/04\/640-7-1-768x582.png 768w, https:\/\/blog.nexussup.com\/wp-content\/uploads\/2025\/04\/640-7-1.png 1080w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><br>(Image source: Amazon)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Brand-Customized Exclusive Promotion Discount Tools<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Many sellers\u2019 product pages have recently been marked with \u201cFollower promotion\u201d and \u201cExclusive promotion.\u201d<br>This is Amazon\u2019s new brand-customized promotion tool, allowing creation of exclusive discount offers (ranging from 10% to 50%) via promotion codes. It targets brand fans, repeat customers, recent buyers, high-spending customers, and even customers with pending payments, while also tapping into the \u201cpotential new customer\u201d segment.<br>For sellers, it means tailoring promotions for different customer groups to boost transaction opportunities.<br>For buyers, it provides more discount options to purchase premium products at the lowest possible prices.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Up to 25% Commission Reduction for Enterprise Bulk Sales<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">To address the business procurement needs of enterprise buyers and operational challenges of sellers, Amazon has launched a bulk sales service with multi-level packaging display and large-package recommendations.<br>For qualifying large-package items, sellers can receive a 15%\u201325% commission discount, with consolidated shipping available\u2014greatly lowering per-item costs.<br>This saves buyers on large-scale purchases and increases sellers\u2019 sales and profits.<\/p>\n\n\n\n<!DOCTYPE html>\n<html lang=\"en\">\n<head>\n  <meta charset=\"UTF-8\">\n  <title>Sales Commission Discount<\/title>\n  <style>\n    body {\n      font-family: \"Segoe UI\", sans-serif;\n      background-color: #f9fafb;\n      margin: 30px;\n    }\n    .discount-table-container {\n      max-width: 600px;\n      margin: 0 auto;\n      background-color: #fff;\n      padding: 20px;\n      border-radius: 12px;\n      box-shadow: 0 4px 12px rgba(0,0,0,0.1);\n      text-align: center;\n    }\n    h1 {\n      color: #2c3e50;\n      margin-bottom: 15px;\n    }\n    .subtext {\n      color: #666;\n      font-size: 14px;\n      margin-bottom: 20px;\n    }\n    table {\n      width: 100%;\n      border-collapse: collapse;\n      margin-top: 10px;\n    }\n    th, td {\n      border: 1px solid #ddd;\n      padding: 12px;\n      text-align: center;\n    }\n    th {\n      background-color: #3498db;\n      color: #fff;\n    }\n    tr:nth-child(even) {\n      background-color: #f1f8ff;\n    }\n    .note {\n      font-size: 13px;\n      color: #888;\n      margin-top: 15px;\n    }\n    .icon {\n      margin-right: 6px;\n    }\n    .highlight {\n      background-color: #3498db;\n      color: #fff;\n      padding: 4px 8px;\n      border-radius: 6px;\n      font-size: 14px;\n    }\n  <\/style>\n<\/head>\n<body>\n\n<div class=\"discount-table-container\">\n  <h1>\ud83d\udcb0 Sales Commission Discount<\/h1>\n  <p class=\"subtext\">\n    Discounts apply based on the quantity of products in a full case or pallet.\n  <\/p>\n\n  <table>\n    <thead>\n      <tr>\n        <th>Quantity Range <br>(Per Case\/Pallet)<\/th>\n        <th class=\"highlight\">Commission Discount<\/th>\n      <\/tr>\n    <\/thead>\n    <tbody>\n      <tr>\n        <td>2 ~ 9 Items<\/td>\n        <td>15%<\/td>\n      <\/tr>\n      <tr>\n        <td>10 ~ 23 Items<\/td>\n        <td>20%<\/td>\n      <\/tr>\n      <tr>\n        <td>24+ Items<\/td>\n        <td>25%<\/td>\n      <\/tr>\n    <\/tbody>\n  <\/table>\n\n  <p class=\"note\">\n    Note: Please refer to the specific terms and conditions of your contract or platform guidelines for detailed rules and eligibility.\n  <\/p>\n<\/div>\n\n<\/body>\n<\/html>\n\n\n\n\n<p class=\"wp-block-paragraph\"><br>(Data source: Amazon)<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">6. Attractive Benefits for Sellers Onboarded from March 2023<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">For new sellers joining on or after March 1, 2023:<br>\u2022 When a new buyer purchases their first available ASIN, 5% of the first-year or first US $1 million brand merchandise sales will be rebated, with a maximum of US $50,000 per site and up to US $150,000 in total across sites.<br>\u2022 Sellers who register for the Vine program within 90 days after brand registration (or after the launch of their first ASIN, whichever is later) receive a US $200 Vine program credit.<br>\u2022 New sellers who register for Amazon FBA are eligible for up to US $200 off inbound shipping fees, plus limited-time free storage, removal, and return processing for new ASINs.<br>\u2022 Additionally, creating an ad campaign within the first 90 days of launching an ASIN earns a US $50 ad credit, and launching Amazon coupons within the same period gets a US $50 coupon fee discount.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">7. Challenges Confronting Amazon<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">With emerging competitor platforms rapidly growing, Amazon\u2019s long-held dominance is under threat.<br>In addition to multiple warehouse worker strikes adding unprecedented burdens, since the beginning of this year, Amazon in the UK has seen over a million daily mobile app users lost, further impacting its performance.<br>Beyond the popular Temu, SHEIN also exerts considerable pressure\u2014its mobile users have doubled from 1 million to 2 million in the past six months. Additionally, European second-hand platform Vinted continues its stable growth, with nearly 2 million daily active users.<br>Amazon\u2019s \u201cbig cake\u201d that it has dominated for years is now being sliced by Temu, SHEIN, TikTok, AliExpress, Lazada, and others. With users fleeing, how can Amazon maintain its position?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">PART.02 \u2013 The Temu Contender<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">1. Unstoppable Global Expansion<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Recently, Pinduoduo\u2019s cross-border e-commerce platform Temu officially launched its Chile and Philippines sites, accelerating its global expansion. The Philippines marks its first Southeast Asian site, while Chile signals Temu\u2019s entry into the farthest South American market from China.<br>Since its launch in September last year, Temu has entered 37 countries and regions. In August, its major expansion efforts focused on Europe, Southeast Asia, and South America.<br>These include Australia, Austria, Belgium, Bulgaria, Canada, Chile, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Philippines, Poland, Portugal, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, United Kingdom, and the United States.<br>Temu\u2019s new site promotions continue its low-price strategy by offering large-value coupons, discount activities, and free shipping.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. APP Ranking Breakthrough<\/h3>\n\n\n\n<p class=\"has-cyan-bluish-gray-background-color has-background wp-block-paragraph\">Temu\u2019s rapid development is remarkable\u2014it has stabilized its position overseas in less than a year.<br>Recent data from Sensor Tower on Q2 2023 indicates that Temu has entered the global top 10 in downloads for the first time.<br>This proves its popularity overseas and signals that it has become a major contender in the global app market.<br>Temu\u2019s success is largely attributed to its strategy of expanding in the European market. In Q2, its installations increased more than twofold, from 31 million to 74 million.<br>Its rising popularity is solidifying its position as an influential global app.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Disrupting the Traditional Model<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">With a \u201cwild growth\u201d gene, Temu is not only sweeping across global markets like a tiger but also disrupting traditional models.<br>After launching its US site, Temu introduced a \u201cfully managed\u201d mode.<br>For sellers, this mode saves the cost of establishing their own warehousing, logistics, and customs clearance, while also reducing labor and time costs and improving operational efficiency and risk control.<br>For the platform, controlling the core e-commerce processes in-house is highly beneficial for future development.<br>For buyers, it translates into superior pre-sale, in-sale, and after-sale services.<br>Following Temu\u2019s lead, AliExpress, Shopee, Lazada, TikTok, and others have announced trials of fully managed models; even the e-commerce giant Amazon is reportedly testing its own fully managed mode, expected to be launched by the end of the year.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Temu\u2019s Challenges<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Temu operates under two modes: JIT (Just-In-Time, or pre-sale) and VMI (Vendor Managed Inventory, essentially stocking). Most sellers choose the latter.<br>Temu has pulled out all stops in driving traffic and expanding its market, and both the platform and its sellers have seen soaring orders.<br>However, despite rapid front-end expansion and an ever-growing overseas footprint, the back-end warehousing and logistics still lag behind, resulting in serious inventory pile-ups. Orders\u2014both first-time and repeat\u2014as well as hot products are now being halted from entering the warehouse.<br>The fully managed \u201clow margin, high volume\u201d model is exactly what Pinduoduo excels at; however, it also tests the platform\u2019s warehousing management, logistics, and resource integration capabilities\u2014a process that Temu still appears to be ironing out.<br>Will Temu continue to forge ahead with effective strategies and ultimately become the \u201cAmazon killer\u201d?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Expanding Markets and Bol&#8230;<\/p>\n","protected":false},"author":2,"featured_media":6119,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"sfsi_plus_gutenberg_text_before_share":"","sfsi_plus_gutenberg_show_text_before_share":"","sfsi_plus_gutenberg_icon_type":"","sfsi_plus_gutenberg_icon_alignemt":"","sfsi_plus_gutenburg_max_per_row":"","footnotes":""},"categories":[28,26],"tags":[],"class_list":["post-6117","post","type-post","status-publish","format-standard","has-post-thumbnail","category-amazon-biz","category-e-commerce"],"_links":{"self":[{"href":"https:\/\/blog.nexussup.com\/index.php?rest_route=\/wp\/v2\/posts\/6117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.nexussup.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.nexussup.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.nexussup.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.nexussup.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6117"}],"version-history":[{"count":1,"href":"https:\/\/blog.nexussup.com\/index.php?rest_route=\/wp\/v2\/posts\/6117\/revisions"}],"predecessor-version":[{"id":6120,"href":"https:\/\/blog.nexussup.com\/index.php?rest_route=\/wp\/v2\/posts\/6117\/revisions\/6120"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.nexussup.com\/index.php?rest_route=\/wp\/v2\/media\/6119"}],"wp:attachment":[{"href":"https:\/\/blog.nexussup.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.nexussup.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.nexussup.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}