How to Sell on Temu #1 Guide
Temu, a mobile-first marketplace launched in 2021, has garnered significant attention that left businesses thinking about how to sell on Temu?
Temu has captured the attention of businesses seeking new avenues for growth.
Temu’s mobile app has seen significant adoption, particularly in the United States. As of July 2023, Temu surpassed 30 million downloads, with over 40% originating from the US market.
Burak Yolga, the founder of Forceget stated, “Temu became popular in the United States after the Super Bowl. Temu.com has been downloaded more than 50 million times within a week, and this popularity still continues.”
What is Temu?
Temu.com is a mobile-first online marketplace, a prominent Chinese e-commerce platform, offering a wide range of competitively priced merchandise across various categories.
Primarily for value-conscious consumers in North America, especially the United States. These consumers prioritize affordability and are attracted to Temu’s focus on offering products at lower price points.
“Temu is growing very rapidly, expected to invest 30 million dollars in their ads. What they do is ship directly from China to the United States” says Burak.
Who Owns Temu?
Temu com website is owned by Pinduoduo, a prominent Chinese agricultural ecommerce platform known for its social commerce features and focus on value-driven products.
Pinduoduo’s success in the Chinese market, particularly its innovative approach to gamified shopping and group buying, has fueled Temu’s rapid expansion.
How to Sell on Temu?
Burak says, “You can save money from the export fees. Basically,Chinese factories can get almost 15-18% tax refund from the government of China when they export the product but because their import price is below $ 800 in the United States they don’t pay a lot of tax or duties.”
Follow these steps to start selling on Temu:
Step 1. Create an Account
Head over to Temu’s website and click on “Become a Seller.” Fill in your name, email address, password, and phone number.
Verify your account using the code sent to your phone and access your Temu seller dashboard.
Step 2. Set Up Your Store
Once your account is set up, it’s time to customize your online store. Make it visually appealing by adding a logo or banner and writing a store description that highlights what makes your offerings unique.
A well-designed store creates a positive first impression and sets the stage for successful selling.
Step 3: Complete Your Seller Profile
Building trust with potential buyers is crucial. Complete your seller profile by providing essential information:
- Shop Name: Choose a unique and catchy name for your Temu shop.
- Description: Write a compelling and concise description of what you plan to sell.
- Profile Picture: Upload a professional logo or a high-quality photo representing your shop.
- Payment Account: Provide your payment account details for seamless processing of your earnings.
- Return Address: Ensure buyers have a valid return address, adding a layer of trust.
- Tax Information: Input your tax ID number and business tax status for compliance.
Step 4: List Your Products
- Prepare Product Information: Craft an attractive title and description, select the relevant category, and gather high-quality images, pricing, inventory, and shipping details.
- Log into Your Seller Dashboard: Access your dashboard to start the listing process.
- Add Product Details: Enter all prepared information, including product name, description, category, pricing, inventory, and dimensions.
- Upload Images and Videos: Showcase your products with high-quality visuals.
- Optimize for Search: Use relevant keywords for improved visibility in search results.
- Accurate product representation and optimization increase your chances of attracting potential buyers.
Step 5: Optimize Your Listings
To stand out on Temu, focus on optimizing your product listings:
- Relevant Keywords: Conduct thorough keyword research and seamlessly integrate them into titles, descriptions, and tags.
- High-Quality Images: Invest in professional photography for clear and appealing product visuals.
- Competitive Pricing: Research and set competitive prices to attract Temu shoppers who love a good deal.
By paying attention to these details, you enhance your product listings for increased visibility and, ultimately, more sales.
Step 6: Promote Your Products
- Marketing Tools: Utilize Temu’s built-in tools for featured product promotions and targeted advertising.
- Relevant Keywords for Visibility: Use popular search terms in your listings for increased visibility.
- Social Media Sharing: Share your products on platforms like Facebook, Instagram, and Twitter to reach a broader audience.
- Affiliate Program: Explore Temu’s affiliate program to tap into additional promotional avenues.
Where is Temu Shipped from?
When it comes to where Temu is shipped from, the majority are shipped directly from warehouses located in mainland China.
This allows Temu to leverage a vast network of manufacturers and suppliers, contributing to their competitive pricing strategy.
How to Ship from Temu?
As a seller for Temu, you are not directly responsible for fulfilling customer orders.
“When it comes to the marketing strategy they’re planning to spend almost $3 billion in the United States to market their products. They want more people to download this product and they’re going to be the most aggressive when it comes to pricing”, according to Burak.
Temu manages the entire fulfillment process, including warehousing, picking, packing, and shipping products to customers in North America.
- Warehousing: Temu manages a network of warehouses located in mainland China. Your products are stored securely in these facilities until customer orders are place.
- Order Processing: Once a customer places an order on Temu, Their system automatically transmits the order details to the appropriate warehouse.
- Picking and Packing: Temu’s fulfillment staff efficiently pick, pack, and prepare your products for shipment based on customer orders.
- Shipping: Temu uses reliable shipping carriers to deliver your products directly to customers in North America. They likely negotiate bulk shipping rates with carriers, potentially leading to cost savings compared to individual seller accounts.
How Long Does Shipping Take from Temu?
Temu’s standard shipping time frame typically ranges from 10 to 12 business days.
However, Temu express shipping options might be available depending on the product category and seller location within China.
Based on customer needs, you’ll have Temu shipping cost adjusted.
- Standard Shipping: This is considered to be the most economical option, with typical Temu shipping time ranging from 7 to 15 business days.
- Expedited Shipping: For customers willing to pay a premium, Temu express shipping time is a suitable option for those hoping for faster delivery time depending on the product category and seller location within China.
“The disadvantages are, you don’t know the quality of the product. If you’re a buyer, you need to wait 10-12 days versus Amazon prime or other websites. Future prediction is Temu is going to keep their prices very low, but then these factories who ship directly from China to the US, they will be selling their best selling items to the fulfillment centers, that Temu is eventually going to start and then they’ll start shipping their products locally. Their delivery time will be little shorter, but then the prices might be higher.”
Can I Buy From Temu and Sell on Amazon?
While Temu offers a centralized fulfillment model, as an Amazon seller, you would have more flexibility through FBA and self-fulfillment options.
Feature | Temu | Amazon |
Fulfillment Model | Centralized fulfillment managed by Temu | FBA (optional) or self-fulfillment by seller |
Warehousing | Temu manages warehouses in China | Seller utilizes FBA warehouses or 3PL warehouses |
Picking & Packing | Temu handles picking and packing | Seller fulfills these tasks for FBA or self-fulfillment |
Shipping | Temu negotiates shipping rates with carriers | Seller chooses and pays for shipping carriers |
Shipping Cost | Potentially lower due to bulk negotiation by Temu | Varies depending on seller’s chosen carrier and service |
Shipping Time | Typically 7-15 business days (standard shipping) | Varies depending on FBA |
Temu vs Amazon
Temu vs Amazon are two e-commerce giants vying for market share, but they cater to different audiences and operate under distinct business models.
Deciding between these platforms depends on whether you’re a consumer seeking the best deals or a business looking to expand your reach.
Target Audience
Temu: Primarily targets value-conscious consumers in North America, specifically the United States. These consumers prioritize affordability and are attracted to Temu’s competitive pricing structure.
Amazon: Caters to a broader audience with a wider range of income levels. While Amazon offers competitive prices on many products, it also features premium brands and higher-priced items.
Product Selection
Temu: Offers a wide variety of competitively priced products across various categories, with a focus on sourcing from China.
Amazon: Boasts a much more extensive product selection, encompassing both established brands and private label products alongside items directly sold by Amazon itself.
Seller Options
Temu: Operates a selective seller onboarding process. Businesses can apply through an existing Pinduoduo seller account or directly on Temu’s website. Specific criteria for direct applications are not publicly disclosed.
Amazon offers two main options for sellers:
- Fulfillment by Amazon (FB): Sellers can leverage Amazon’s vast network of warehouses for storage, picking, packing, and shipping. Amazon FBA fees would depend on your products, as well as how fast you’d like your products to ship.
- Fulfillment: Offers sellers more control over fulfillment processes but requires them to manage logistics themselves.
Fulfillment Model
Temu: Manages the entire process from product storage in China to delivery to customers in North America.
Amazon provides sellers with more flexibility.
- FBA: Strealines fulfillment for sellers but comes with additional Amazon FBA fees.
- Self-Fulfillment: Offers sellers more control over fulfillment processes but requires them to manage logistics themselves.
Pricing
Temu: Temu sales vs Amazon for its aggressive pricing strategy, offering many products at highly competitive prices due to its focus on Chinese manufacturers. Temu often offers free or subsidized shipping, further enhancing its value proposition for cost-conscious consumers.
Amazon:Offers a wider range of pricing points depending on the product, brand, and seller. While Amazon features competitive prices on many items, it also caters to premium brands and higher-priced goods.
Dropshipping
Temu: Prohibits sellers from purchasing products on Temu for resale on other platforms like dropshipping to Amazon. This practice disrupts Temu’s fulfillment model and potentially violates intellectual property rights.
Amazon: Generally allows dropshipping, but sellers are responsible for ensuring they comply with Amazon’s policies and any potential trademark or copyright infringements.
If you’re a business with established sourcing relationships in China and want a cost-effective, centralized fulfillment model, Temu could be worth exploring.
Watch Burak Yolga’s detailed video on “How to Sell on Temu” for further details!