Feb 05,2024
In the Context of RCEP: Solution for the Southeast Asian eCommerce Logistics
TEMU's rapid ascent in the global e-commerce market has significantly impacted platforms like Amazon, Shopee and Etsy.
This article, we will explore how TEMU's strategic initiatives have led to its dominance, its impact on competitors, and the crucial role logistics IT systems like eTower play in helping cross-border sellers and logistics providers meet TEMU's stringent requirements.
TEMU's Success and the Impact on Competitors
Driven by aggressive marketing strategies and an extensive social media presence, TEMU achieved 30.16 million app downloads by May 2023, becoming the most downloaded shopping app in various markets, including the US and Europe. In the first half of 2024, TEMU’s GMV reached $200 billion, underscoring its rapid market penetration.
Since its inception in 2022, TEMU has disrupted the e-commerce landscape, putting pressure on established platforms. Etsy, for instance, reported a 2.1% decline in sales in the second quarter of 2024 (Source: Etsy), highlighting the competitive pressure TEMU has exerted on traditional e-commerce players. Meanwhile, Amazon and Shopify have seen increases in seller numbers but declines in average order volumes (Source: Extensiv), indicating a market shift towards platforms like TEMU.
TEMU's strategic market expansion has also been a key to its global success. The platform has rapidly extended its operations to 70 countries, including the United States, Canada, various European nations, Australia, Latin America, and Southeast Asia. This global reach has enabled TEMU to capture a diverse customer base and establish a strong international presence.
Notably, TEMU's launches in countries such as Brazil, Japan, South Korea, and Thailand have underscored its effective market penetration. For example, TEMU quickly became the top shopping app in Brazil, surpassing local giants in app downloads despite fierce competition from Mercado Libre and Amazon. Similar successes were seen in Japan, which reached 31.06 million monthly active users, and South Korea, where it gained significant consumer recognition.
TEMU's Stringent Logistics and Delivery Standards
TEMU's success is supported by its global strategy and exceptional services to consumers: competitive pricing, free shipping, a 90-day return policy, and an engaging shopping experience featuring gamified elements. These factors have collectively contributed to its widespread consumer appeal and market dominance.
To deliver these services to consumers, TEMU imposes stringent requirements on sellers and logistics service providers to ensure efficiency, reliability, and high standards of service, which are crucial for maintaining customer satisfaction and operational excellence.
According to our team's experience, some mandatory requirements e-commerce platforms might have for its logistics service providers' IT system are:
Real-Time Event Pushback: Logistics providers must ensure on-time updates on all order statuses, and all events name and descriptions must be mapped according to the platform's requirement
Accurate Label Printing: Different segments handled by various suppliers necessitate seamless label switching.
Performance Metrics: Strict criteria include on-time delivery rates of ≥95%, pick-up efficiency of ≥95%, overall platform satisfaction of ≥99%, and more.
eTower's Role in Meeting TEMU's Standards
eTower, a cloud-based cross-border eCommerce logistics collaboration SaaS launched by WallTech, plays a pivotal role in helping sellers and logistics providers meet platforms' stringent requirements.
eTower's Solutions
Real-Time API Integration: Ensures seamless event synchronization between logistics providers and TEMU, meeting the 24-hour event return requirement.
Comprehensive Event Mapping: Supports accurate real-time mapping and pushback of all required events, covering all eight essential logistics nodes from receiving to delivery.
Quick Label Printing: Facilitates rapid and accurate label switching for different suppliers involved in various delivery segments.
Enhanced Performance Monitoring: Enables providers to maintain high on-time delivery and pick-up efficiency rates through real-time data monitoring and reporting.
TEMU's rapid growth and market penetration have reshaped the e-commerce landscape, posing challenges and opportunities for other platforms. The success of TEMU highlights the importance of competitive pricing, efficient logistics, and innovative marketing strategies. With the support of advanced logistics solutions like eTower, cross-border sellers can effectively navigate TEMU’s stringent requirements, ensuring seamless operations and sustained growth in the competitive e-commerce environment.
For more information about eTower and professional logistics IT consultancy, please visit: www.etowertech.com
