How does Temu, which has enjoyed recent consumer success, work from a seller’s perspective? Is it easy to start selling there and how can you influence the success of your sales?
Temu is an e-commerce platform owned by Chinese PDD Holdings, which has recently gained explosive popularity in the West. Temu offers a wide range of products in many different categories and attracts customers especially with its extremely low prices. But how to sell on this popular consumer platform, what are the challenges and how can you influence sales through advertising?
Read also: Temu: an e-commerce platform of explosive growth
Opening a seller account and starting to sell
YAP would like to start by pointing out that Temu’s own instructions for opening a seller account are very limited. The image below is the full set of instructions that Temu provides in advance. In our research, we found a handful of instructions, which we combined to create a decent guide. In the name of transparency, we can’t guarantee that the seller registration will go exactly as we write, but it’s most likely something along those lines.
Applying to be a seller on the Temu platform is a multi-step process. You first need a seller account, for which the path for western sellers seems to be as follows:
1. First, register as a Temu user, after which you will see the “Partner with Temu” page
2. On the page you will find two email addresses to contact. If you want to become a merchant, click on the left merchandise(at)temu.com
3. Then send them an email expressing your interest in opening a seller account.
4. The next step is the actual process of registering as a seller. Like other e-commerce platforms, Temu requires the company to provide identification information before you can start selling. According to sources, Temu requires the following:
- the ID of the person managing the store
- proof of partnership with a distribution or logistics company
- proof of the legality of the brand (trademark, other letters of authorisation)
- proof of identity of the legal representative
- business licence
All documents must be valid for at least one year after application submission.
Once all the information has been submitted, you can expect an email from Temu confirming the approval of your vendor registration. This can take a few days to a week.
“Temu prefers sellers who already have a Pinduoduo seller account. Nearly all the sources we found mentioned that it’s easier if you’re registered as a seller in Pinduoduo, where you can just tick the global sales box and the Temu platform will open. This model is made really tricky for sellers outside of China. You basically have to register as a seller before you get any further instructions from Temu itself. The way it works does not inspire confidence, and the service path built for sellers is not very good either.”
Suvi-Tuuli Huovilainen, Service Director at YAP, comments.
Price competition and search engine optimization
Stores created on the Temu platform are customisable by the seller. The advantage of Temu is that you don’t need a separate brand registration to create a store that looks like your brand, unlike on Amazon.
Read also: Amazon vs Temu: How will Temu challenge Amazon in Europe?
Store customization is recommended as it helps to build credibility for your brand. In addition, search engine optimized listings are also important on this platform. Listings based on a thorough market analysis, as well as constant monitoring and optimization, are the cornerstones of success on Temu as well as on other platforms. Take advantage of Temu’s own advertising tools and social media channels to promote your products. Constant price comparisons and offers will help you stay ahead of the competition and attract customers.
At Temu, competition is largely based on brutal price competition. Temu has been criticised in the past for their habit of pressuring sellers and manufacturers to drive prices down, to the point of operating at a loss. But to succeed, various coupons, flash deals and other steep price reductions are key ways to boost sales volume. Optimized listings are important to stay ahead of the curve in offering products that match searches, while offers and low prices are a selling point and an incentive to buy.
Time will tell whether Temu will build its services and approach to be more suitable for Western sellers. Currently, the platform mainly serves consumers. Temu’s position as a provider of cheap, mass-produced goods may also contribute to the disadvantage of quality brands. We will remain interested to see how Temu’s position and reputation in the market develops.
To survive in the e-commerce jungle, YAP offers expert travel guides to help you choose the right platform and market. Contact us to discuss starting a journey together.
