Temu vs Amazon: Why the Chinese Platform is 'Stumbling'

Temu, the Chinese e-commerce platform, is facing challenges in the American market due to competition from Amazon and changes in U.S. trade policy.

Following the repeal of the de minimis tax exemption by the Trump administration, Temu is trying to regain its presence in the U.S. However, Amazon is imposing restrictions, prohibiting Temu from offering branded products at lower prices.

Reportedly, Amazon has the ability to enforce the lowest prices and 'punish' suppliers who offer better prices elsewhere. Temu is trying to attract suppliers with lower commissions, but without much success.

Between March and July, Temu's active monthly users in the U.S. decreased by 54%. The company was forced to redefine its strategy and focus on non-branded products and bulk discounts.

Temu states that it believes in fair competition, but Amazon's dominance in the market places significant restrictions.

Source: ot.gr