China’s Temu Takes Over 17% Of US Market Share, Cutting Jobs From American Amazon And Decimating Small Businesses

China’s Temu Takes Over 17% Of US Market Share, Cutting Jobs From American Amazon And Decimating Small Businesses

China’s Temu captures more than 17% of the US market, eliminating jobs at US Amazon and decimating small businesses

With inflation rising, U.S. consumers are increasingly turning to Chinese e-commerce platform Temu for their purchases. With its seductive slogan “Shop like a billionaire”, Temu has captured 17% market share in the United States, posing a challenge to traditional American retailers such as Amazon.com Inc., Dollar Tree Inc. and Five Below Inc. Rise highlights the lucrative and disruptive nature of startups.

Owned and operated by PDD Holdings Inc. (NASDAQ:PDD), Temu offers a wide range of products, including home decor products, pet supplies, beauty and health products and clothing. The platform is known for its competitive pricing, often offering deep discounts on items compared to prices on Amazon. Combined with Temu discount codes, consumers can enjoy even greater savings.

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Temu even became the No. 1 shopping app on the Apple App Store, surpassing Amazon, Target Corp. and Walmart Inc., which currently occupy third, fourth and eighth places, respectively. The #2 shopping app is Shein, another Chinese retailer.

Orders purchased on Temu are shipped from China and should be delivered within 10 days. However, in a bid to compete with Amazon’s fast delivery, Temu opened its marketplace to US warehouses last month. Purchasing from these sellers can significantly reduce shipping times, giving U.S. retailers the ability to handle fulfillment and shipping directly.

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In December, Reuters reported that Temu had successfully competed with dollar stores like Dollar Tree and Dollar General Corp., accounting for nearly 17% market share in the United States. According to data analytics firm Earnest Analytics, that compares to 8% for Five Below, 43% for Dollar General and 28% for Dollar Tree.

In January, Amazon announced it would lay off 5% of its Buy with Prime workforce, which equips retailers with fulfillment and delivery services.

“Following a recent review, we have made the difficult decision to eliminate a small number of positions within our Buy with Prime team. Buy with Prime is a top priority for Amazon, with strong merchant adoption and positive customer feedback, and we “I will continue to invest significant resources in Buy with Prime to build on this momentum,” a statement from Amazon said.

The ripple effects extend to discount stores like Dollar tree and 99 Cents Only Stores, both of which announced significant closures and employee layoffs.

Citing changing consumer demand and economic challenges, 99 Cents Only Stores is closing its 371 locations in Arizona, California, Nevada and Texas. Dollar Tree plans to close 1,000 locations in its Dollar Tree and Family Dollar stores.

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