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Temu surpassing Amazon in user numbers

Chinese e-commerce platform Temu has overtaken Amazon in global monthly active users, according to a recent report highlighted by ChannelX. Despite this achievement, Temu's average purchase amount per customer remains lower than Amazon's.

Temu has begun shifting to a local warehouse model, offering faster delivery times and higher prices. This strategic move is expected to increase efficiency and improve customer experience. Analysts estimate Temu's gross merchandise value (GMV) exceeded $50 billion in 2024, with projections suggesting growth to $70-80 billion in 2025. Additionally, the platform's path to profitability appears promising as its investments in user acquisition are reduced due to its now-established customer base.

While Amazon retains advantages in perceived quality and delivery speed, Temu and similar platforms are focusing on enhancing product quality through increased local sourcing. A significant portion of Temu's US sales is already attributed to local merchants, showcasing its investment in regional markets.

With its massive customer base, Temu is now focusing on increasing the frequency and value of purchases from existing users. However, questions remain about whether the platform can sustain its momentum and present a serious challenge to established e-commerce giants. Meanwhile, authorities in various regions are working to address concerns over the large influx of Chinese goods entering their markets.

Source: www.ehandel.se

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