New Chinese-backed shopping platform Temu set to rival Amazon and eBay in Australia – find out why it's causing a stir!
- Replies 33
It’s no secret that technology has changed the game when it comes to shopping in the 21st century. With more and more people opting to shop online rather than in-person, the popularity of online shopping platforms has soared to a whole new level.
In recent years, Australians have become more and more acquainted with online shopping, with big names like eBay and Amazon dominating the market.
While we love these sites as much as the next person, it looks as though a new player might be about to enter the arena.
A Chinese-backed shopping platform called Temu is about to shake things up. The platform was launched in Australia and New Zealand on March 13, with the digital lifestyle platform offering free shipping and free returns for 90 days.
It’s a subsidiary of PDD Holdings which is based in China, and the company is trying to gain traction in Australia through marketing on platforms such as YouTube.
It offers products such as winter coats, compression gloves and hair clips at heavily discounted prices and has been gaining popularity around the world – particularly in the United States.
However, compared to giants such as Kmart and Amazon Australia, Temu’s reach into the Australian market still isn't half as big.
According to Similar Web, globally, Temu had 67.6 million website visits in the month of March, whereas Kmart had 16.9 million visitors each month and Amazon had an estimated 28.8 million visitors each month.
According to Brian Walker, the founder and CEO of Retail Doctor Group, online marketplaces like Temu and Amazon are going beyond what traditional retailers such as BIG W and Kmart offer.
He explained: ‘BIG W and Kmart are traditionally centred retailed that are bricks and mortar with increasing online presences and they integrate the two.’
‘This takes it a step further and is ultimately an app based data platform model that works on the idea of a manufacturer to consumer market model.’
‘But the value of the organisation comes from the value of its database.’
Mr Walker remarked that Temu and Amazon operate on a more advanced model compared to other retailers in Australia.
He also noted that in today's globalised world, the adoption of new technologies like these comes with a range of cultural, political, social, cybersecurity, and economic considerations that need to be taken into account.
According to Paul Zahra, the CEO of the Australian Retailers Association, the discount retailing industry is a vast and fiercely competitive market, which is why new players are continuously attracted to it.
‘With increasing cost-of-living pressures, many Australians will choose value-based discount products over more expensive brands,’ he said.
‘A key challenge within the discount retailing industry is low-priced products providing much lower margins – and so the focus is on achieving a high volume of sales.’
‘Another key challenge in the Australian market is implementing an efficient and affordable supply chain, where customers receive their products in a timely manner.’
‘Australia is particularly challenging with its enormous geographic territory, but much lower scale of population compared to many international markets.’
Speaking of effective business strategy, the app is gaining popularity among shoppers, especially since other retailers are caught in some mishaps lately.
A 65-year-old customer, for instance, shared that she had already made 20 orders through the platform since January, purchasing various items such as craft supplies, jewellery, and gifts.
However, some reviews were noticeably less positive than others.
Overseas shopper Julie ordered Christmas gifts from Temu that were never delivered despite the company's promise to deliver them by December 19th.
She spent $178 on gifts that included drones and makeup, but she has yet to receive a refund despite reaching out to the company multiple times.
Julie wrote a negative review of Temu and cautioned that she would be more careful when shopping online in the future.
The Better Business Bureau received 31 complaints about Temu in October, and the company held a C rating on BBB with an average customer rating of 1.4 out of 5 stars at the end of 2022. Today, the company is no long BBB accrediated, with a 2.26 out of 5 star rating. Worse yet, this rating is based on a whopping 260 complaints.
Temu's sister company, Pinduoduo, has been accused of selling counterfeit products or providing misleading information, but no such complaints have been made against Temu.
While the jury is still out on Temu, we will wait and see if it can secure a foothold in the competitive Australian online retail market.
We’re all about shopping safely, so as always, be sure to research and read the reviews before you make any purchases.
Members, how do you feel about this new brand? Better yet, have you ever shopped in Temu? Share your experiences with us in the comments below.
In recent years, Australians have become more and more acquainted with online shopping, with big names like eBay and Amazon dominating the market.
While we love these sites as much as the next person, it looks as though a new player might be about to enter the arena.
A Chinese-backed shopping platform called Temu is about to shake things up. The platform was launched in Australia and New Zealand on March 13, with the digital lifestyle platform offering free shipping and free returns for 90 days.
A new online shopping platform is trying to penetrate the Australian market. Credit: Temu.
It’s a subsidiary of PDD Holdings which is based in China, and the company is trying to gain traction in Australia through marketing on platforms such as YouTube.
It offers products such as winter coats, compression gloves and hair clips at heavily discounted prices and has been gaining popularity around the world – particularly in the United States.
However, compared to giants such as Kmart and Amazon Australia, Temu’s reach into the Australian market still isn't half as big.
According to Similar Web, globally, Temu had 67.6 million website visits in the month of March, whereas Kmart had 16.9 million visitors each month and Amazon had an estimated 28.8 million visitors each month.
According to Brian Walker, the founder and CEO of Retail Doctor Group, online marketplaces like Temu and Amazon are going beyond what traditional retailers such as BIG W and Kmart offer.
He explained: ‘BIG W and Kmart are traditionally centred retailed that are bricks and mortar with increasing online presences and they integrate the two.’
‘This takes it a step further and is ultimately an app based data platform model that works on the idea of a manufacturer to consumer market model.’
‘But the value of the organisation comes from the value of its database.’
Mr Walker remarked that Temu and Amazon operate on a more advanced model compared to other retailers in Australia.
He also noted that in today's globalised world, the adoption of new technologies like these comes with a range of cultural, political, social, cybersecurity, and economic considerations that need to be taken into account.
According to Paul Zahra, the CEO of the Australian Retailers Association, the discount retailing industry is a vast and fiercely competitive market, which is why new players are continuously attracted to it.
‘With increasing cost-of-living pressures, many Australians will choose value-based discount products over more expensive brands,’ he said.
‘A key challenge within the discount retailing industry is low-priced products providing much lower margins – and so the focus is on achieving a high volume of sales.’
‘Another key challenge in the Australian market is implementing an efficient and affordable supply chain, where customers receive their products in a timely manner.’
‘Australia is particularly challenging with its enormous geographic territory, but much lower scale of population compared to many international markets.’
Speaking of effective business strategy, the app is gaining popularity among shoppers, especially since other retailers are caught in some mishaps lately.
A 65-year-old customer, for instance, shared that she had already made 20 orders through the platform since January, purchasing various items such as craft supplies, jewellery, and gifts.
However, some reviews were noticeably less positive than others.
Overseas shopper Julie ordered Christmas gifts from Temu that were never delivered despite the company's promise to deliver them by December 19th.
She spent $178 on gifts that included drones and makeup, but she has yet to receive a refund despite reaching out to the company multiple times.
Julie wrote a negative review of Temu and cautioned that she would be more careful when shopping online in the future.
The Better Business Bureau received 31 complaints about Temu in October, and the company held a C rating on BBB with an average customer rating of 1.4 out of 5 stars at the end of 2022. Today, the company is no long BBB accrediated, with a 2.26 out of 5 star rating. Worse yet, this rating is based on a whopping 260 complaints.
Temu's sister company, Pinduoduo, has been accused of selling counterfeit products or providing misleading information, but no such complaints have been made against Temu.
While the jury is still out on Temu, we will wait and see if it can secure a foothold in the competitive Australian online retail market.
We’re all about shopping safely, so as always, be sure to research and read the reviews before you make any purchases.
Members, how do you feel about this new brand? Better yet, have you ever shopped in Temu? Share your experiences with us in the comments below.
.png){kind=icon}
