Temu wants to be stiffer competition for Amazon. The online mega store is expanding its marketplace to sellers with U.S.-based warehouses, Insider reports.
Temu, which is owned by Chinese e-commerce company PDD Holdings, has primarily operated under a “managed marketplace” strategy that ships products from warehouses in China. With the expansion, Temu will reduce its delivery times. Instead of relying on warehouses across borders, its new strategy will give U.S. sellers the ability to handle fulfillment and shipping directly.
Temu plans to label products that will be shipped from U.S.-based warehouse as “faster delivery.”
In addition, Temu’s new strategy will mean it can expand its product offerings to include larger items. The retailer already offers a slew of products such as women and men’s clothing, home and kitchen appliances, toys and games, beauty and health products, and even pet supplies.
With its rapid rise, Temu could be well positioned to compete with e-commerce giant Amazon. In 2023, Temu earned the top spot on Meta’s list of advertisers after it’s parent company forked out almost $2 billion in revenue, The Wall Street Journal reported.
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