![\"\"](\"https://cross-border-magazine.com/wp-content/uploads/2024/08/temumarketplace.png\")
Temu has opened its marketplace to European merchants responsible for its product range, inventory management, and product shipping. These conditions are because Temu determines the final prices of products to the consumer.
\n\n\n\nHaving snowballed with a consignment model, Temu also announced a site-to-site model earlier this year. In this alternative model, sales partners handle product shipping themselves. The new model allows international retailers to capitalize on Temu's local popularity.
\n\n\n\nFor its owner, PDD Holdings, the marketplace offers opportunities for faster delivery to Western consumers and the inclusion of larger items on its virtual shelves. Temu launched the new model this spring in the United States, where a significant portion of its orders are currently shipped locally.
\n\n\n\nAccording to Zixia Yi, seller acquisitions manager, on LinkedIn, it recently became “officially open for business registration in EU entities, including those based in Germany, France, Italy, Spain, the UK and the Netherlands. \" She speaks of “exciting news for EU sellers.”
\n\n\n\nTo attract merchants, Temu currently charges no base fees or sales commissions. Sellers can even advertise on the platform for free. It is not yet known how long this introductory period will last.
\n\n\n\nKeep in mind that Temu prices are set based on a unique business model. Unlike Amazon, where third-party sellers have pricing power, Temu's suppliers operate differently. They compete to offer the lowest-priced products in the same category. Only 20 suppliers are selected, and they must ensure their prices remain the lowest.
\n\n\n\nTemu recently pointed out that there will soon be an economic recession that could spread to the rest of the world's countries. Chen Lei, CEO of Temu, one of China's e-commerce giants, warned in the presentation of results that its profits will fall in the future due to the slowdown in economic growth.
\n\n\n\nThese predictions have caused the company owned by PDD Holdings to experience its darkest day on the stock market since October 2022 with a 30% drop that has caused its owner, Colin Huang, the richest man in the country, to lose 14 billion dollars.
\n\n\n\nTemu is one of the most important companies in China and the world in terms of e-commerce and its leaders have launched a warning regarding the situation of the global economy in the short term in the presentation of the company's results. Chen Lei, the company's chief executive officer, warned in his appearance at the event where the firm presented its results that revenues and profits will “inevitably” fall due to the slowdown in economic growth.
\n\n\n\nJun Liu, vice-president of Finance at PDD Holdings, the company that owns Temu, also reported that the growth rate will be affected by the situation in the country, which in recent years has confirmed itself as the great leader of the world economy. So, the words of these leaders must be taken into account. “In the last quarter, our revenue growth rate slowed quarter-on-quarter. Profitability is also likely to be affected as we continue to invest aggressively,” he said of the situation.
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