Should eBay, Amazon, and Etsy Sellers Be Running Scared from Temu? – Beragampengetahuan

Temu is the dollar store of online platforms, and it has marketplaces like eBay, Amazon, and Etsy on the run. That means sellers should also be paying attention to the platform, because it could have a direct impact on their sales, if it hasn’t already had a negative impact.

Digital Commerce 360 published a video on YouTube in February citing research that shows how quickly Temu has gained brand awareness and noting that it has become the number four most visited retail website in the US behind Amazon, Walmart, and eBay, according to data from Insider Intelligence.

With Temu expected to spend billions on marketing in 2024, Digital Commerce 360 asked, “Is $3 billion in spending going to be enough for Temu to overtake eBay in 2024?”

beragampengetahuan Steve Chou has warned Amazon and Etsy sellers about the threat Temu poses, and in this YouTube video, he breaks down what Temu is, how it’s a threat to Amazon, the advantages it holds, and the challenges that Temu itself is facing. Chou is a seller who runs My Wife Quit Her Job, “an educational blog and podcast that teaches others how to sell physical products online.”

Temu is vulnerable to scammers and to legal threats over copyright infringement, Chou said, adding that it would face challenges when it expands from selling cheap items to branded goods. “As long as Temu faces questions about the quality of its products and its reputation as a reliable seller, top brand names will continue to stay away,” he said. He also said Temu could face challenges from US lawmakers similar to those facing TikTok about possible ties to the Chinese government.

Chou also said Etsy sellers are facing problems because Chinese sellers are returning to Etsy in this video published on YouTube today.

“Chinese sellers used to be on Etsy up until 2021, when they were silently removed due to worries about protecting the integrity of the handmade marketplace,” Chou said. But it recently added China back to the Etsy Payments approved country list, he said, “which is essentially like rolling out the red carpet for Chinese sellers to come back.”

The CEOs of major marketplaces have been forced to address the competitive threat that Temu and rival Shein pose. In a week and a half, we’ll learn if they have anything further to tell Wall Street analysts when they release earnings for the first 3 months of the year, with Amazon going first on April 30th, and eBay and Etsy following on May 1st.

Ina Steiner

Ina Steiner is co-founder and Editor of beragampengetahuan and has been reporting on ecommerce since 1999. She’s a widely cited authority on marketplace selling and is author of “Turn eBay Data Into Dollars” (McGraw-Hill 2006). Her blog was featured in the book, “Blogging Heroes” (Wiley 2008). She is a member of the Online News Association (Sep 2005 – present) and Investigative Reporters and Editors (Mar 2006 – present). Follow her on Twitter at @beragampengetahuan and send news tips to ina@beragampengetahuan.com. See disclosure at beragampengetahuan.com/disclosure/.