Temu vs Amazon: A Comparison between Business Models, Practices & Strategies

Temu vs. Amazon is like comparing Dollar Tree to Costco. One floods the market with ultra-cheap, fast-moving items with razor-thin margins. The other relies on buyer loyalty, trusted logistics, and operational control to scale profitably. Both feed the masses—but in wildly different ways.

Temu’s entry into the U.S. ecommerce space, backed by Chinese giant PDD Holdings (the parent company of Pinduoduo), has prompted many Amazon sellers to take notice, with some even exploring whether Temu could be a viable new sales channel or competitive threat.

This article will explore how Amazon and Temu may share the same stage but are still worlds apart. We’ll compare and analyze their strategies for profitability, logistics, technology, and customer base, and how they impact buyers’ and sellers’ experiences— in short, answering all your questions regarding Amazon and Temu in comparison with each other.

What are the main differences between Temu’s and Amazon’s business models?

The key difference between Temu and Amazon’s business models lies in one central aspect.

Profitability vs. Market Penetration

Temu is deliberately operating at a loss to establish a strong foothold in the market, aiming to build a substantial user base and brand recognition before shifting focus toward profitability.

Unlike Amazon, which focused on growth and reinvestment over early profits, Temu uses strategies such as thin profit margins to pull the crowd and build a strong customer base. This aggressive pricing strategy is usually practiced to draw the crowd from established marketplaces.

Now, coming to Amazon. While it has consistently implemented a combination of product diversification and quality, it has always leveraged its reputation, reliability, and quality control as a justification for never reducing product price points. However, founder Jeff Bezos famously focused on long-term expansion, customer obsession, and reinvestment into infrastructure, often at the expense of short-term profits.

The bottom line?

While both aim for dominance, their paths diverge—Temu through disruptive pricing, Amazon through strategic expansion and brand reliability.

Why is Temu so cheap?

Temu negotiates and obtains items at bulk pricing. Then, a thin profit margin is added to the original price to offer the items to buyers at the best, most competitive rate. It does the most to retain customers, which is essentially its goal at this point in time, when it is expanding.

In short, Temu is sacrificing lucrative profit for market penetration to achieve a long-term goal. Hence, it offers items at a cheaper price compared to most of the other established marketplaces.

Temu vs. Amazon: Key Comparisons

The areas one must consider to draw a clear differentiation between Temu vs Amazon are the pricing strategies, the fulfillment models, a seller’s control over branding their products, the marketing tactics and the technology adapted by them to attract different tiers of customers that they target. Let’s take a look at how they differ.

1. Pricing Strategy

In ecommerce, pricing isn’t just a number but a positioning tool. It’s a customer magnet; besides that, it’s a defining line between profitability and burnout. The pricing strategy you adopt as a seller on Amazon or Temu shapes everything: your profit margins, your marketing, your ideal customer profile, and your long-term sustainability in the market.

For ecommerce platforms such as Amazon and Temu, pricing is a reflection of their core business philosophy.

For sellers, it’s a make-or-break tool. You set prices too low, and you risk eroding your margins. Set them too high, and you lose your customer base. That’s why it’s critical to understand how Temu and Amazon approach pricing on a platform level.

Temu

Temu is mastering its “minimum profit margin maximum sales volume” approach, successfully eliminating competition and encouraging bulk orders from patrons. Price-sensitive customers find the heavy discounts hard to resist, which, in a way, results in Temu’s customers ordering significantly more units, leading to higher profit margins.

Also, Temu is pretty aggressive regarding wholesaler negotiation, wrestling with them to procure products at a bulk rate, which they can then sell at incredibly cheap prices.

Amazon

Amazon harbors comparatively expensive products, but within the marketplace, Amazon supports competitive pricing. It supports sellers with an advanced logistics network and maintains a quality standard of items sold. This gives sellers the confidence to charge a higher price.

2. Logistics and Fulfillment

In ecommerce businesses, be it on Amazon or Temu, logistics is far more than just moving packages from point A to B. It drives customer satisfaction, operational efficiency, and long-term business growth. Your fulfillment process directly impacts reviews, repeat purchases, and scalability, from delivery speed to return handling.

For sellers, the logistics framework of a marketplace dictates how much responsibility you bear when things go wrong. This is precisely where Amazon and Temu’s approaches sharply diverge.

Temu

Temu controls a part of the fulfillment via Cainiao and other logistics partnerships for cross-border shipping. Temu does not currently support fast delivery like Amazon Prime.

Seller logistics freedom is limited compared to Amazon FBM/SFP. Temu does not prioritize quick shipping. Hence, it can cut down on logistics costs, which helps it keep the price lower and offer items at zero shipping charges.

Amazon

Amazon can offer a complete suite of fulfillment services (Amazon FBA) that completely removes the responsibility of inventory management and delivery. For its presence, Amazon prioritizes sellers providing fast delivery, and they get the most visibility and they get ownership of the Amazon Buybox, generating optimum sales.

You can also self-fulfill orders by opting for the FBM (Fulfilled by Merchants) option. Or you can also opt for SFP (Seller Fulfilled Prime), a program that allows Amazon sellers to deliver directly to Prime customers from their warehouse while still holding the Prime badge on their listings, without using Fulfillment by Amazon (FBA).

3. Technology and Innovation

For sellers, the technological ecosystem you operate within can fuel innovation or create limitations. It shapes everything from how you acquire customers to how efficiently you retain them and stay ahead of shifting demand.

Regarding innovation, Amazon and Temu are playing two entirely different games—with equally different priorities.

Temu

Temu is a tech-forward platform that makes the most of AI technology to predict price sensitivity. So customers get flash sales every now and then, which offer bulk discounts to groups shopping and claiming it together. Temu keeps updating its algorithm, which fosters maximum interaction via gamification features that are dynamically adjusted in real-time.

Amazon

The way Amazon incorporates AI is a little different. It personalizes product recommendations, and interestingly enough, their Rufus AI shopping assistant makes the experience engaging by enhancing the overall experience. Amazon uses AI across its entire ecosystem to help sellers grow efficiently. Most importantly, in recent times, we have seen an AI-backed customer review summary above each review section to understand customer sentiments at a glance.

AI-powered ad tools and customer review summaries are just a few more to name.

Sellers benefit from better visibility and conversion rates as a result of this. Leveraging machine learning leads to easy demand forecasting, inventory placement, and fraud detection, ensuring smoother operations. Visual search, voice commerce via Alexa, and buyer sentiment analysis enhance the customer journey, while return prediction tools help sellers improve listings.

4. Brand Control and Differentiation

The ability to differentiate your brand comes down to how much control a marketplace gives you over things like product presentation, storefront design, packaging, and direct customer interaction. Amazon and Temu follow two very different philosophies when it comes to branding, and here’s how.

Temu

Between Temu and Amazon, the former offers a very limited scope of brand control, compared to latter. Unlike platforms like Amazon, where the scope of crafting custom storefronts for brands or uploading enhanced branded content is a widely used marketing tool, Temu centralizes product presentation. Product listings on Temu are typically standardized, with images and pricing often controlled by Temu’s internal merchandising teams rather than the sellers themselves, only highlighting the contrast between Temu vs Amazon.

Sellers on Temu typically do not operate their own branded storefronts, as the platform consolidates product listings under a unified marketplace experience managed largely by Temu itself. As a result, the ability to create a branded shopping experience, tell a product story, or differentiate based on brand identity is virtually nonexistent.

Amazon

Amazon empowers sellers to build and protect their brand through tools like Amazon Brand Registry, which offers enhanced intellectual property protection, counterfeit monitoring, and access to features like A+ Content, Stores, and Brand Analytics.

In short, these tools allow sellers to elevate their product pages with eye-catching visuals, custom layouts, videos, and storytelling elements that can significantly boost engagement and conversion. It helps brand owners like you have an impact on buyers’ psyches.

Sellers can also leverage Amazon Storefront to create a curated, multi-page branded shopping experience and use Brand Posts (which are similar to Instagram-style updates) to showcase lifestyle imagery, new launches, and product education.

Amazon has tight control over listing structure and customer communication. This bridges the gap between the branding scopes of Amazon and Temu to a certain extent. However, if we contrast Temu vs Amazon, customization options are far more advanced in Amazon, and so are the scopes for branding.

In essence, Amazon gives sellers structured freedom. For example, sellers enrolled in the Brand Registry program can use the Amazon Storefront builder to create a multi-page brand storefront using drag-and-drop modules, like image carousels, product grids, and video embeds. However, there are constraints. You can’t use external links, stay within the pre-set templates of page layouts, and only include high-resolution standards.

5. Customer Base and Trust

Trust doesn’t exist in a vacuum—the platform itself shapes it. The marketplace you sell on, be it Temu or Amazon, becomes a proxy for your reputation. If the platform delivers late, misrepresents a product, or complicates returns, your credibility goes on toss.

And just like pricing, trust signals differ dramatically depending on the customer base. Are you selling to loyal, convenience-first Prime members? Or are you catering to deal chasers who treat every order like a gamble? That’s why understanding how Amazon and Temu shape customer expectations is critical to building a lasting business.

Temu

Temu’s customer base comprises price-conscious, trend-conscious younger generation (mainly Gen Zs) and a limited percentage of millennial women. Anyone who’s a fast fashion consumer and conforms to the fleeting social media fashion trends can be an ideal target for Temu, be it while buying a garment or a new age multi-hair styler. While this virality factor gives Temu a viral boost in terms of app downloads and order volumes, the trust infrastructure is still under development.

Many customers, at this point, approach the platform with skepticism, particularly around quality, shipping duration, and return policies. For sellers, this translates to limited brand equity, lower repeat purchase rates, and increased pressure to compete purely on price, often at the cost of sustainable margins.

Amazon

With an extensive worldwide customer base, Amazon is a household name. Backed by a strong reputation, Amazon’s proactive steps to maintain quality have made it the most reliable ecommerce website for almost all categories under the sun! The customer base is as diverse as the product categories, who are mostly convinced by convenience.

For sellers, this means higher conversion rates, stronger brand credibility, and greater potential for repeat business. Trust becomes a multiplier, not just for traffic, but for customer lifetime value.

6. Marketing Strategy

Marketing in ecommerce determines how your product enters the customer’s awareness, how it’s perceived, and whether it stands out in a sea of alternatives following a strategic conversion funnel. For sellers on Temu and Amazon, marketing is where strategy meets survival.

Done right, it drives visibility, ranking, and sales velocity. If wrong, even the best product collects dust, be it in Amazon or Temu warehouses.

But here’s the catch: the marketing tools available to you in Amazon and Temu, plus the effectiveness of those tools, are shaped by the marketplace. Some platforms give you a rich toolbox and granular control; others keep a tight grip on the customer journey and brand visibility. That’s why understanding how Temu and Amazon approach marketing isn’t just helpful, it’s essential to making the most of your ad spend, content efforts, and brand positioning.

Temu

Temu is often marketed as a solution for your fast fashion needs or an excellent source for cheap TikTok finds. It catches people’s attention with exciting gamification, surprise sales, and referral programs to incentivize customers while sellers can sell higher product volumes. However, this aggressive marketing step works out for Temu. We can see a massive dominance of user-generated content marketing as the target customers are influenced chiefly by digital media.

This model benefits Temu’s mass exposure and volume-driven sales goal, but it leaves sellers with limited brand-building opportunities.

Amazon

Amazon dominates its competitors by taking over the SEO and paid advertising media, affiliate marketing, and social proof via multiple media options of customer reviews. Amazon offers a performance-based, seller-driven marketing ecosystem with robust tools like Sponsored Products, Sponsored Brands, Display Ads, A+ Content, and more.

While it requires more hands-on management (and ad budget), it also offers higher potential for control, differentiation, and long-term brand growth. Amazon also promotes Prime, Audible, Kindle, etc, in bundle deals to keep their customers engaged.

The pros and cons of Temu and Amazon

When making a comparison between Temu vs Amazon, it’s clear that both platforms offer significantly different approaches to ecommerce. Understanding what the differences are between Amazon and Temu is critical, from fulfillment to pricing to trust. Temu and Amazon each come with their own pros and cons. Let’s break it down one by one.

Platform | Pros | Cons

Temu

- Extremely low prices and frequent discounts
- Huge variety, especially for unbranded/generic items
- Engaging, gamified shopping experience
- Free shipping and easy returns on most items
- Social shopping incentives

- Long, unpredictable shipping times (often 7–22 days)
- Inconsistent product quality
- Limited real-time tracking and transparency
- Anonymous sellers, less trust
- Customer service and refunds can be slow

Amazon

- Fast, reliable shipping (Prime, FBA)
- High product quality and authenticity
- Real-time package tracking
- Strong buyer protection and easy returns
- Wide selection, including major brands
- Voice shopping with Alexa

- Higher prices, especially vs Temu
- Some counterfeit or misleading listings
- Data privacy concerns
- Review reliability issues

Choosing Amazon or Temu often comes down to what matters most to you as a shopper: reliability and speed, or price and novelty. If you’re wondering what the differences are between Amazon and Temu, keep reading.

Why buy from Temu?

Between Amazon and Temu, the latter brings a new flavor to online shopping. It’s playful, viral, and hyper-discounted.

Temu offers interesting discounts and a unique shopping model

Temu’s social shopping model is USP. It is one of the features designed to promote high-volume sales by creating a network (by encouraging customers with incentives and referrals) and enabling sales. It is tough to find a shopping website that turns shopping into a social activity.

In this peer-to-peer social shopping model, once you convince your friends to join, you get to unlock discounts. In this case, the more the merrier. If you convince three of your friends to buy the same viral top that you are buying, you get a certain amount of discount. If you can convince two more, the discount amount will be higher and could be shared by all your friends, including you.

Tenu offers tech-forwardness to make the shopping experience interesting

The AI technology used by Temu analyzes your browsing patterns, clicks, and purchase history, which helps you discover Flash Deals and trending products, and helps you discover viral products that resemble your primary choice, and hot deals too.

The gamification features, like Spin the Wheel, are exceptionally engaging, helping the platform stay connected with the customers, and the more you play and win, the more you are rewarded with coupons, which are redeemable as discounts.

Temu shares prestige points with a Far East giant PDD Holdigs

Being a part of PDD Holdings, Temu has an overseas supply chain edge, but the reputation of Amazon has been consistently good for the past two decades, along with the infrastructure and trust, which makes it the most efficient ecommerce website with the most market share.

Why to buy from Amazon

If you’re looking for consistency, protection, and lightning-fast shipping, Amazon vs Temu is no competition. Amazon wins on logistics, trust, and convenience.

Fast, predictable delivery through Prime

Amazon’s logistics network is unmatched. With same-day and next-day delivery on millions of items, it’s hard for Temu to compete on shipping speed in the Temu vs Amazon discussion. The advanced delivery tracking features and its vast inventory network give reliability in terms of timelines.

Hassle-free returns and strong customer protection

The A-to-Z feature guarantees that Amazon puts its money where its mouth is. It ensures hassle-free returns, which makes it a leader in restoring customers’ faith. This makes Amazon one of the most customer-centric platforms. In the Amazon vs Temu debate, Amazon’s dedication to post-purchase service, return or exchange pickups, and refunds makes the platform lead in customer loyalty.

AI-powered shopping with Alexa and more.

Amazon’s Alexa-powered personalized shopping is more than just AI recommendation. Order a product or reorder with just one voice command. It has truly redefined the convenience of AI by building a futuristic hands-free technology for shopping.

This futuristic, voice-enabled convenience is a key differentiator in the Amazon and Temu feature set comparison.

In addition to that, you get AI-powered consolidated review highlights within the review section for better user experience if you’re too lazy to ask Rufus AI.

Amazon vs Temu: Tracking comparison

Feature | Amazon | Temu
Real-time tracking | Yes (to-the-minute, includes map tracking) | Limited (status-based only)
Last-mile transparency | High (live map & frequent updates) | Moderate (updates via USPS/partners)
Fulfillment source | Local (Amazon FBA, regional warehouses) | Overseas (mostly cross-border shipping)
Delivery ETA accuracy | Very high (predictive, 95%+ accurate) | Varies widely, often less precise

Why to not buy from Temu vs why to not buy from Amazon

While both platforms, Amazon and Temu, have their strengths, there are also reasons customers hesitate. Understanding Temu vs. Amazon from a risk and reliability perspective can help clarify which platform truly suits your needs.

Platform | Pros | Cons

Temu

- Access to a large, price-sensitive audience
- Low entry barriers for manufacturers/wholesalers
- No need for branding or advertising
- Streamlined, direct shipping model
- Good for high-volume, low-margin sales

- No brand visibility or customer loyalty
- Strict pricing control, low margins
- Intense competition, price wars
- No fulfillment support (FBM only)
- Quality and logistics issues can hurt reputation

Amazon

- Massive customer base and global reach
- FBA handles storage, shipping, and customer service
- Prime eligibility boosts sales
- Tools for advertising and brand building
- Higher trust and credibility

- High seller fees and tight margins
- Fierce competition (including from Amazon itself)
- Limited direct customer access
- Risk of counterfeiters and click fraud
- Reliance on Amazon’s logistics and policies

Why to not buy from Temu

Temu’s discount-heavy model comes with prominent trade-offs. In the Temu vs Amazon prices conversation, Temu may win on cost, but not always on quality or transparency.

Temu’s unpredictability in terms of quality and delivery timelines

As Temu focuses on higher volume sales, its strategy also involves grabbing the attention of fast fashion lovers or impulse buyers. They aim to cut down on selling prices for better inventory movement.

However, the quality and delivery timelines become extremely shaky and unpredictable; the standard delivery duration can be 7 to 15 days. However, shipments can be subjected to unexpected delays. Customers may accept this delay at the cost of reduced price points, but the reputation may linger in customers’ psyches, especially when they compare Amazon and Temu side by side.

Added charges may be added to certain products as import charges making the pricing unpredictable along with delivery timelines.

Temu sellers are anonymous

Multiple sellers are selling on Temu, but anonymously. This level of anonymity is one of the major drawbacks in the Temu vs Amazon shopping experience. Customers will never know the source of the product or the manufacturer, for the sake of quality assurance. So every time you hit the buy button, it is like shooting a shot in the dark.

The way it lures impulse buyers may turn out to be profitable momentarily, but it fails to generate customer loyalty, which determines the success of any ecommerce business.

Temu has a suspiciously swift time-to-market duration

Sellers of Temu take the shortest time to make a trend available on their website. This puts a question mark on the ethical sourcing of the products, and overproduction concerns due to a lack of data to predict sales, and it definitely fails to resonate with the values of eco-conscious consumers.

Why not to buy from Amazon

Even the giant has its downsides. In a direct Temu vs Amazon price war, Amazon often costs more. Plus, it’s not immune to quality and ethical concerns.

Amazon prices are comparatively higher

Convenience, quality checks, and on-time delivery make Amazon a top player in the game. This is how they justify their comparatively high pricing. Also, Prime members find it even more convenient due to the availability of same-day delivery or one-day delivery options. When it comes to Temu vs Amazon prices, Amazon often loses.

Amazon may stir counterfeit concerns

Although the Amazon marketplace is highly regulated, we can still find counterfeit products circulating, especially in the luxury fashion, electronics, and beauty categories. While comparing Amazon vs Temu, there’s no scope for counterfeiting as people order from Temu and do not expect it to be branded.

Review woes

Some customers heavily rely on reviews and ratings, which may become a cause of concern when it does not match their expectations.

Amazon has flawed data protection policies

It is a rising concern among Amazon users about their data protection policies and how they are using customers’ browsing and purchase history, customer reviews and ratings, delivery and location, payment and transaction details (payment card data, spending pattern, etc.), data from Alexa-enabled devices, etc. This is something that may influence modern customers’ Amazon or Temu decisions moving forward.

Why to sell on Temu vs why to sell on Amazon

If you’re an ecommerce seller weighing Temu vs. Amazon, understanding the fundamental differences between the two is key to making the right business decision. Let’s dive deep into what sets them apart and what suits your requirements— Amazon or Temu.

Why sell on Temu

If you’re comparing Temu vs. Amazon, Temu is the go-to for manufacturers or wholesalers not interested in branding or retail operations. Here’s why.

Temu is ideal for wholesalers

Hot take for the sellers! Temu is the best option for you if you are a wholesaler or a manufacturer without any intention of joining the retail market. While you manufacture the top-selling items, if you’re comparing Temu sales vs Amazon, Temu requires less operational effort as Temu’s team will attend to your customers.

Zero effort required for branding

When it comes to Amazon and Temu, one of the biggest differentiators is branding. Your products will be sold under Temu’s branding, so no requirement to invest in branding from your side. In addition, running ads and optimizing listings is not required to maximize visibility. All you need to do is upload the product description and let Temu pick it up from there.

Temu practices aggressive pricing to capture the market

If you have a stable manufacturing unit and the production follows a pace where it can keep up with the effects of aggressive marketing, Temu is aligned with your goals. Considering the demand for fast fashion, you can expect low-margin but high-volume sales, making you ample profit.

Temu can be a low-risk entry

When comparing Amazon or Temu, a small-scale production unit without a brand identity can also find its place in Temu’s marketplace and sell successfully. No risk of being suppressed by established brands— so a new seller and an established one get equal opportunity to make profits, given the products are in demand. The low-budget operation makes it even easier to enter the market, making it a low-risk option for you.

Why sell on Amazon

In the Amazon vs Temu debate, Amazon is the best option if you’re looking for long-term brand growth, control, and scale.

Opportunities for ambitious Amazon sellers

If your aim is scalability and recognition, Amazon is the way to grow your business. Its market share beats every other digital marketplace, and with 310+ million active customers worldwide, among whom over 200 million are Prime members. If you’re comparing Temu sales vs Amazon, Amazon has a ready customer base that you can leverage.

For those who are concerned about marketplace saturation, you’re thinking along the correct lines. Every emerging brand aims to thrive on Amazon due to access to a vast worldwide audience, but do not fret; Amazon also provides you with tools to bring traffic to your products.

Amazon’s undeniable reputation

When evaluating Amazon vs Temu, brand credibility becomes a major deciding factor. The service of the Amazon marketplace adds to its reputation as people are more likely to rely on Amazon’s swift delivery, careful handling, and easy return/refund over official websites. So, having a presence outside of your standalone website is essential for visibility as well as direct sales.

Amazon offers FBA facilities

The Amazon FBA service streamlines inventory management, packing, labeling, and doorstep delivery without having to lift a finger (the Amazon Flex associates will pick up your items from your location, and that’s where your responsibilities end). Prime delivery is available to FBA users, which fulfills an order in 1-2 days or even the same day (depending on the customer’s location), making customers choose you over the rest due to its convenience.

So via Amazon, you get a chance to outsource your responsibilities and in the process, you draw more customers by serving them with quick delivery. And when you avail of fast delivery, Amazon’s algorithm gives you preference over other sellers. Thus, you get better at organic ranking, and along with that, you experience a higher conversion rate.

Amazon offers promotion options

Ideal for retailers and brand owners, Amazon allows access to PPC ads, making product promotion easier. Consider using Sponsored Products, Sponsored Brands and Amazon Demand Side Platform (DSP). In the Amazon and Temu comparison, Amazon wins for sellers who want to market and grow their brand visibility actively.

Why to not sell on Temu vs why to sell on Amazon

Here’s a reality check if you’re comparing Temu vs. Amazon from a seller’s standpoint. Temu offers convenience but little control, brand presence, or pricing flexibility. Sellers are boxed into low-margin, high-volume models with no chance to foster customer loyalty. Conversely, Amazon empowers sellers with tools to scale, build a brand, leverage fast Amazon FBA shipping, and yet limits a seller’s scope in various other intricate ways. Let’s dig deep.

Why not to sell on Temu

A realistic comparison of Temu and Amazon shows that Temu may not be ideal for every seller, especially if you’re chasing brand recognition or higher margins.

No brand ownership or visibility

You can consider Temu to be a retail marketplace. The customers interact with Temu as a brand, not sellers like you as providers. So, although you’re providing the items, they get to interact with Temu as the brand they own. If you’re looking to make an identity, Temu is not the correct choice for you, as you remain in the background. There is practically no chance of fostering a long-term relationship with customers in Temu that can lead to repeat purchases. Your products will get better visibility only if they are in high demand by the audience.

Lack of loyalty from customers

Look into the intent of the target customers. They are mostly into fast fashion, driven by fleeting trends, and mostly focused on affordable yet fashionable pieces. What motivates them is price and design over the rest of the factors. So, there is hardly any chance of customers expecting loyalty.

Strict pricing control by Temu

Temu reportedly controls pricing on many listings and expects sellers to offer the lowest possible prices.
You don’t have the freedom to set your pricing. Temu offers discounted pricing and always focuses on keeping paper-thin margins. One of its strategies is to provide surprise discounts to attract most customers.

FBM only model

Temu sellers do not have the option to opt for fulfillment support. Although the concept of fulfillment options exists among other marketplaces, such as Amazon FBA, Temu offers no such services, so sellers must be prepared to manage their logistics and inventory. If you decide to sell on Temu, you’ll have to track skipping, returns/refunds (which can often affect your overall ROI.

Why not sell on Amazon

Despite its benefits, selling on Amazon has its own set of challenges, which can tilt the Amazon or Temu’s decision for some sellers.

Amazon limits access to customers

Limited reach and interaction with customers are blockers that every Amazon seller feels frustrated about. The terms and conditions of Amazon strictly prohibit sellers from reaching out to customers via external means, hence keeping them from building a loyal customer base.

Exhausting ‘Buy Box’ race

Lowest price, fastest delivery, and FBA can help you achieve the Buy box, which leads to higher volume sales for Amazon sellers. So, the cheapest price with the quickest delivery wins the race, irrespective of reviews and reputation.

Razor-thin margins for Amazon sellers

Considering the myriad of fees that an Amazon seller is subjected to, like 4-15% referral fees, FBA fees, storage fees, extended storage penalties, etc., unless you’re selling a profitable product, it is challenging to make a fair earning from Amazon selling. Newly added Inbound Placement Service fees make it even more difficult, leaving sellers with not more than a 15% margin on average. So, although there are plenty of options to scale on Amazon, without a hefty investment, it will be difficult for them to aim for it.

Sellers compete with the giant itself

If your category contains products from Amazon’s in-house, it is tough to stand out. For example, if you’re a bedding company selling comforters, Amazon’s Solimo will be one of your biggest competitors.

If it is not an Amazon-owned brand directly competing with you, it has to be another white-label brand created by Amazon that has sneakily used your seller data.

As mentioned earlier, the seller data has very little protection, and although sellers are not given access to it, Amazon can access the seller data anytime, for any purpose. However, this is unfair towards the struggling brands and is often a reason for frustration.

Amazon traps, aka click fraud

The Amazon marketplace can be grounds for malpractices such as fake negative reviews and click fraud on Amazon PPC ads that exploit the platform even after some serious protective layers.

Logistical dependence of sellers on Amazon

Amazon sellers must be wary of FBA logistics and its drawbacks. Apart from higher seasonal storage fees and inbound placement fees, occasional delays in fulfillment of delivery within promised timelines can directly affect delivery, which can lead to a tainted reputation for sellers, even though they have no control over it.

How worried should Amazon be about Temu?

Temu is more likely to be a competitor to Alibaba due to its affordable pricing model and practice of a low-profit, high-volume strategy. Amazon has nothing to worry about because of the stark difference in business strategy and target audience.

Final thoughts

Ultimately, when we compare Temu vs Amazon, we can find that Temu’s pricing strategy is highly targeted towards market penetration. As it disrupts the practice of e-commerce in the US, people are wondering about the future of e-commerce due to the effects of hyper-competitive pricing. On the contrary, Amazon’s robust infrastructure and years of reputation remain unaffected by this new force.

Each platform appeals to a different category of consumers and sellers, with separate preferences. Temu keeps attracting buyers who prioritize discounts, maintaining quality and delivery timings secondary, while people looking for uncompromised quality and swift delivery hold on to Amazon.

Similarly, sellers with bulk production infrastructures looking for a client for steady sourcing will always prefer Temu. Bulk production may often result in occasional disputes, so these sellers are more likely to be shunned by Amazon. However, established sellers or resellers who want a streamlined approach to fulfillment and seek broader categories will always find their comfort zone in Amazon.

So, comparing Temu vs Amazon is like comparing apples and oranges, but in an ecommerce context.