TEMU vs. Amazon: Why Sellers Are Expanding to TEMU

As eCommerce platforms continue to evolve, sellers are always on the lookout for new opportunities to expand their reach and maximize profits. While Amazon has long been the dominant player in the online retail space, TEMU is quickly becoming a viable alternative, offering a range of benefits that appeal to U.S. sellers. Here’s why many sellers are expanding to TEMU and how it compares to Amazon.

1. Fee-Free Selling on TEMU vs. Amazon’s Fees

One of the most significant differences between TEMU and Amazon is the cost of selling. On Amazon, sellers face various fees, including:

• • Referral fees: Amazon takes a percentage of each sale, ranging from 6% to 45%, depending on the product category.
  • Fulfillment fees: Sellers using Amazon FBA (Fulfillment by Amazon) must pay for storage, packing, and shipping services, which can quickly add up.
  • Subscription fees: Professional sellers on Amazon pay a monthly subscription fee of $39.99 to access additional tools and features.
    
    

In contrast, TEMU offers sellers a fee-free selling environment, meaning no platform fees, no commission fees, and no advertising costs. This allows sellers to keep 100% of their profits and reinvest in growing their business. For small and medium-sized businesses, this can make a huge difference in their bottom line.

2. Greater Flexibility in Fulfillment

Amazon’s FBA program has its advantages, including access to Prime shipping and streamlined fulfillment. However, it comes with limitations:

• • Sellers must adhere to Amazon’s strict requirements, including storage limits, inventory fees, and shipping restrictions.
  • During peak seasons, FBA fulfillment times can increase, causing delays and negatively impacting seller performance.
    
    

TEMU, on the other hand, allows sellers to manage their own fulfillment or integrate with third-party logistics providers like SKUPREME. Sellers using SKUPREME can:

• • Automate order routing: SKUPREME’s system automatically routes orders to the nearest fulfillment center, reducing shipping times and costs.
  • Maintain full control over fulfillment: Sellers can choose their own fulfillment partners and processes, allowing for greater flexibility during busy seasons.
  • Improve shipping efficiency: SKUPREME’s real-time inventory and order tracking ensures that sellers have full visibility into their supply chain, preventing delays and overselling.

This flexibility gives sellers on TEMU the freedom to customize their fulfillment processes based on their specific business needs.

Amazon has an enormous customer base, with over 300 million active users worldwide. This makes it one of the largest eCommerce platforms, and sellers benefit from Amazon’s vast audience. However, this also means intense competition, as millions of sellers are vying for the same customers, making it difficult for new or smaller sellers to stand out.

TEMU, while newer, is experiencing rapid growth, particularly in the U.S. market. With a focus on providing U.S. sellers access to a growing customer base without the saturation seen on Amazon, TEMU offers:

• • Fewer competitors: Sellers on TEMU face less competition compared to Amazon, allowing them to capture market share more easily.
  • Strong promotional support: TEMU’s platform actively promotes products from new sellers, giving them better visibility and opportunities to attract customers.
  • Rapidly growing user base: TEMU’s investment in high-profile marketing campaigns, such as the Super Bowl, has contributed to its growing popularity and attracted millions of new users.
    
    

For sellers looking to tap into an emerging marketplace with less competition and a more engaged customer base, TEMU presents an exciting opportunity.

4. Multi-Channel Selling with SKUPREME Integration

While Amazon allows sellers to reach a vast audience, it can be difficult to manage multiple sales channels when selling on Amazon and other platforms. Sellers often have to juggle inventory management, order fulfillment, and customer service across various systems, leading to inefficiencies and errors.

SKUPREME’s integration with TEMU simplifies multi-channel selling by providing sellers with:

• • Centralized inventory management: Sync inventory levels across all platforms to ensure accurate stock counts and prevent overselling.
  • Automated order routing: SKUPREME routes orders to the most efficient fulfillment center, whether they come from TEMU, Amazon, or another platform.
  • Real-time analytics: Track sales performance, inventory levels, and fulfillment metrics in real time to make data-driven decisions that improve efficiency and profitability.
    
    

With SKUPREME, sellers can seamlessly expand their operations to TEMU while maintaining full control over their multi-channel sales strategy.

5. First-Mover Advantage on TEMU

Amazon is a well-established platform, and while it offers many benefits to sellers, it’s also highly competitive. Sellers often need to invest in advertising, offer steep discounts, or use aggressive pricing strategies to stand out in the crowded marketplace.

TEMU, being a newer platform in the U.S., offers sellers a first-mover advantage:

• • Increased visibility: Sellers joining TEMU early can benefit from less competition and higher visibility in search results and product listings.
  • Lower advertising costs: With fewer sellers on the platform, sellers are more likely to attract organic traffic without needing to invest in expensive advertising campaigns.
  • Early adoption benefits: TEMU actively supports early adopters with promotional tools and resources to help them succeed on the platform.
    
    

By expanding to TEMU, sellers can establish themselves as leaders in a growing marketplace before it becomes saturated.

Final Thoughts

While Amazon remains a dominant force in eCommerce, TEMU offers U.S. sellers a unique opportunity to expand their business with fewer fees, more control over fulfillment, and less competition. By leveraging SKUPREME’s multi-channel integration, sellers can seamlessly add TEMU to their sales strategy and take advantage of a rapidly growing marketplace.

Interested in joining TEMU? Learn more and get started with SKUPREME today.

Read more about TEMU at our Selling on TEMU with SKUPREME blog series.

Check out the rest of our posts in the series: