With rising inflation, American consumers are increasingly turning to Chinese e-commerce platform Temu for their shopping needs. With its enticing slogan ‘Shop like a billionaire’, Temu has captured 17% of the US market share, challenging traditional US retailers such as Amazon.com Inc., Dollar Tree Inc. and Five Below Inc. lucrative and disruptive nature of startups.
Owned and operated by PDD Holdings Inc. (NASDAQ:PDD) Temu offers a wide range of products including home decor, pet supplies, beauty and health products and apparel. The platform is known for its competitive pricing, often offering significant discounts on items compared to prices on Amazon. When combined with Temu discount codes, consumers can benefit from even greater savings.
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In fact, Temu has become the No. 1 Shopping app in Apple’s App Store, surpassing Amazon, Target Corp. and Walmart Inc., which currently rank third, fourth and eighth, respectively. The number 2 shopping app is Shein, another Chinese retailer.
Orders purchased on Temu are shipped from China and are expected to be delivered within 10 days. However, in an effort to compete with Amazon’s fast delivery, Temu opened its marketplace to US warehouses last month. Shopping with these sellers can significantly reduce shipping time, giving U.S. retailers the opportunity to handle fulfillment and shipping directly.
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In December, Reuters reported that Temu was successfully targeting US dollar stores such as Dollar Tree and Dollar General Corp. challenged, accounting for nearly 17% of the market share in the United States. According to data analytics firm Earnest Analytics, this compares to 8% for Five Below, 43% for Dollar General and 28% for Dollar Tree.
In January, Amazon announced it would lay off 5% of its Buy with Prime workforce, which provides retailers with fulfillment and delivery services.
“Following a recent review, we have made the difficult decision to eliminate a small number of roles across our Buy with Prime team. Buy with Prime is a top priority for Amazon, with strong seller adoption and positive customer feedback, and we will continue to invest significant resources in Buy with Prime to build on that momentum,” an Amazon statement said.
The ripple effects extend to discount stores like Dollar Tree and 99 Cents Only Stores, both of which have announced significant closures and employee layoffs.
Citing changing consumer demand and economic challenges, 99 Cents Only Stores is closing all 371 locations in Arizona, California, Nevada and Texas. Dollar Tree plans to close 1,000 locations across its Dollar Tree and Family Dollar stores.
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This article China’s Temu takes over 17% of the US market share, cuts jobs at US Amazon and decimates small businesses originally appeared on Benzinga.com
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