How to Sell on temu:
As a brand new online marketplace, temu has created quite a stir with its big discounts and free shipping. However, there’s not a lot of information out there about how this platform works for small businesses. In this article, we’ll break down the basics of how to sell on temu, from registration to optimizing your store.
The Business Model
Temu’s business model is a bit unique in that it offers to do most of the work for both sellers and buyers. They provide a proprietary marketplace, payment facilitation, merchant acquisition and verification, product recommendations, logistics partnerships, and more. In return, they take a cut of every sale.
It’s an interesting strategy because it allows them to offer some of the lowest prices on the market, even lower than Amazon’s Prime fees. This is largely because they’re working directly with Chinese manufacturers. Taking a page from fashion powerhouse SHEIN, they’re able to react quickly to emerging trends, test products with low quantities, and then scale up production of the winners.
It’s too early to know if this strategy will pay off. The good news is that many consumers seem happy with the products and low prices. But the company does have a number of complaints filed with the BBB, and their customer rating is only 1.4 stars out of 5. This could be an indicator of some problems down the road. Nevertheless, the site’s popularity and low price points make it worth exploring if you’re looking for a new way to reach customers.
