If economic downturns serve as litmus tests for businesses, then "value-for-money" emerges as the ultimate survival strategy. History shows that many retail giants rose to prominence during recessions through aggressive pricing and targeted marketing. The recent ascent of Temu, often called the "overseas version of Pinduoduo," appears to validate this pattern once again.
Temu's "90% OFF" promotions have rapidly captured the U.S. market, temporarily surpassing Amazon and SHEIN to become the top shopping app on Apple's App Store. During Black Friday, its homepage featured relentless promotions—"70% discounts," "free shipping," "90-day returns"—creating irresistible consumer temptation.
I. Product Portfolio: Strategic Market Segmentation
Consider Temu's Black Friday flash sale offering: an essential oil diffuser priced at $5.48 including shipping. While the price point appears attractive, the product represents the lower market tier—300ml capacity with basic cotton-wick atomization. Most top-selling diffusers on Temu fall below $20, squarely targeting budget-conscious shoppers.
Amazon's marketplace tells a different story. A search for "Essential Oils Diffuser" reveals an average price of $29 among the first 100 listings. The platform's mainstream offerings feature 500ml+ capacities, advanced ultrasonic technology, and multiple operational modes—catering to consumers prioritizing quality over price.
II. Pricing Strategy: The Sustainability Question
Temu's initial customer acquisition relied heavily on platform subsidies, which have shown signs of tapering. Should order volumes decline, suppliers may face cash flow pressures without these artificial price supports. In unsubsidized comparisons, Amazon sellers often maintain competitive pricing.
For instance, air fryer parchment paper (100 sheets) retails at $14.99 on Temu, discounted to $4.99 during promotions. Amazon's equivalent product lists at $19.99 with routine discounts to $9.99—a narrowing gap. Furthermore, Amazon's Small and Light program reduces fulfillment costs for compact, inexpensive items, directly countering Temu's logistical advantages.
III. Consumer Mindshare: Amazon's Ecosystem Advantage
Amazon has transcended its e-commerce origins to become the internet's de facto product search engine. While consumers discover items through Google, TikTok, or Instagram, purchase decisions increasingly culminate on Amazon—particularly during major shopping events. This "traffic gravity" creates a formidable barrier for challengers.
Multi-channel merchants report that even with established brand websites, customers frequently verify products on Amazon before purchasing—a testament to the platform's entrenched trust and convenience.
IV. Strategic Responses for Amazon Sellers
Rather than signaling doom, Temu's rise provides Amazon sellers with valuable market intelligence. By analyzing Temu's inventory, sellers can identify oversaturated product categories and avoid price wars. Successful differentiation requires deep supply chain knowledge and calculated product evolution.
Many Temu flash sale items originate from wholesale platforms like 1688, sometimes using identical product images. To compete, Amazon sellers should focus on value-added iterations—combining proven product attributes with quality enhancements. For example, modifying a bestselling 500ml wooden-grain diffuser (40 RMB procurement cost) could yield 40% margins at Amazon's $25-$30 price points.
Advanced product research tools now enable reverse image searches across manufacturing sources, helping sellers evaluate cost structures and identify upgrade opportunities. This approach allows for strategic product line extensions—both horizontal (variations within categories) and vertical (new applications for existing features).