Temu overtakes Shein in Japan and Korea

📱 Fastest growing app: Temu hit 2 million users in Korea since launching in July 2023 and reaching 4 million in 4 months in Japan. Right now it makes $1 billion every month.

💡 Marketing genius: Temu is making the most out of its parent company, known for its supply chain power and marketing. It’s Super Bowl ad outperformed the average Super Bowl ad by 10x and is ranked the 4th best Super Bowl ad in terms of engagement. It also has low prices, discounts and referral programs that make it stand out.

🛍️ Temu or Shein: How does their marketing compare with Shein?

Tier 2 and 3 cities are carrying India’s ecommerce

🏢 What the tiers mean: India’s cities are divided into tiers of how developed they are. Tier 1 is the most developed (and has the most people) followed by Tier 2 and 3. Their market share in ecommerce. however, tells a different story:

• Tier 1 takes 37.1% of the ecommerce market share

• Tier 2 takes 21.4%

• Tier 3 takes 41.5%

🛒 Shopaholics: Tier 2 and 3 love online shopping. They spend 16% of their income buying online and 73% of them go to Amazon because of the low price, good returns & exchanges and discounts.

📈 Amazon enthusiasts: Its paying off for Amazon too. Amazon India recorded 1.1 billion visits, 80% of them coming from Tier 2 and 3 cities.

US seller fees are getting higher

👁️ The Amazon lawsuit: Amazon’s lawsuits puts monopoly rules and seller bullying into light, especially spying on their own sellers if they offer lower prices on other platforms. 

💸 Seller fee numbers: This could spell trouble for sellers in the US, where some of the biggest names are already making seller fees harder:

• Etsy went from 5% to 6.5%

• Ebay fees went from 12.9% to 13.25%

• Amazon takes more from 40% to 50%

❓️ Why: Some of the reasons for higher fees are:

• Improvements for the marketplace itself (the main reason that the companies stated)

• Inflation and fuel prices

• Increased fulfillment center storage costs

• Increased fees from logistics companies