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Marketplace Wars - Amazon vs. Temu Round 2
Temu chases big brands; Amazon fights back with their new low-cost store
David Cikánek
October 29, 2024
More details on TEMU marketplace in Europe
✅ Sellers need a trademark for their brand, or if it's not their brand, permission from the brand owner. This requirement is stricter than Amazon in some cases, and while it sounds promising, it doesn’t sound real to me.
✅ There’s no advertising module yet. Product promotion depends entirely on pricing—if your price is low enough, Temu will advertise your product outside of the platform. Otherwise, there’s no way to bid or boost visibility within Temu.
✅ Unlike Amazon, Temu won’t have a buy box. It’s more like eBay, where each product is listed individually (= huge mess)
✅ and 10 more notes about future Temu marketplaces in the full article below
Amazon's answer to Temu - Low-cost store
Before Temu and Shein, Amazon had been the channel for buying from China for a decade — even if it took the company until 2024 to admit its “significant” reliance on Chinese sellers. However, it optimized for fast delivery, hiding the disadvantage of slow supply chain speed using FBA but losing the pricing advantage. That worked incredibly well, but once Temu and Shein showed up, it was clear that some goods at some price points don’t need fast delivery — shoppers would happily wait to spend less.
✅ Orders are processed from an Amazon center in China; seller fulfillment not available.
✅ Invite-only, possibly limited to Chinese sellers.
✅ All products listed under the brand name “Generic.”
✅ Only small products: Weight limit: 1 lb; Size limit: 14 x 8 x 5 inches.
✅ Maximum price varies by category (e.g., $14 for shorts, $20 limit overall).
