Terrifying! Amazon’s weekend sales volume has plummeted! Sellers say they can’t keep up with Temu

Amazon's weekend sales volume dropped and sellers can't keep up with Temu

Once upon a time, they could “pee a height of one zhang (unit of length) against the wind”, but now they “wet their shoes while peeing with the wind”. Many Amazon sellers are facing a “midlife crisis”.

According to research data, the current operating conditions of cross-border sellers are: 40% of Amazon sellers maintain revenue growth; over 50% of Amazon sellers experience a decline in profits; over 70% of Amazon sellers have increased their advertising investment; over 60% of sellers have reduced their inventory during peak season; 70% of sellers have reduced their recruitment of personnel; and over 60% of sellers focus on the European and American markets.

Who exactly is dipping into the cake of Amazon sellers?

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• Amazing! Temu tops the charts in the United States! Pinduoduo’s stock price surged by 19%
• Yunda International launches UK consolidation shipping service; Temu strengthens its return policy
• Amazing! Temu dominates the list in the United States! Pinduoduo’s stock price surged 19% overnight

Plummeting order volume

This morning, a seller discovered that in the past week, traffic has significantly decreased, and orders have decreased by one-third. However, it is unclear whether this is due to individual category issues or recent changes in Amazon’s overall traffic. Therefore, the seller asked friends about changes in order volume.

After comparison, it was discovered that many other sellers had also recently experienced a drop in order volume. Many sellers have begun to adopt a self-deprecating attitude:

It’s exactly the same. Despite being a summer product, the trend is against it, and orders have dropped by at least 30%.

In the European market, the auspicious three treasures category had a direct sales volume cut in half in May, and the ACOS (Advertising Cost of Sales) doubled compared to April. I’m already on the verge of giving up.

Don’t even mention it. Your orders only decreased by one-third, but mine are all at the ankle level. And the ads too, the keywords that used to be very accurate suddenly have dozens of clicks without any orders!

Today is a direct cut in half! Today is a direct cut in half! The boss has already brewed tea waiting for me to explain, no, to argue!

I cut down 2/3 directly, and my heart was broken.

In the past week, the sales have dropped by nearly one third directly, and I suspect that my links have been restricted.

All sellers have experienced a sharp decline in sales. Some said, “I wonder if it’s my own ability or the overall environment that’s not good enough.”

Some sellers believed that the decline in sales was due to Memorial Day in the United States. They had a day off on May 29th (Monday), and May 27th and 28th were Saturday and Sunday, respectively. They had a three-day holiday in total. However, this reason was soon refuted.

One seller rebutted, “Although it’s a holiday in the United States, the traffic did not decline during the same period last year. In addition, the overall traffic of summer products this year did not increase.”

More sellers tend to believe that TEMU and consumer downgrade have caused an impact on Amazon’s seller sales.

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Can TEMU shake Amazon?

“If you look at the sales volume on Amazon and then look at the sales volume of the same product on TEMU, you may understand the reason why Amazon’s sales have declined”, said a seller.

Earlier, some sellers found that by copying a product from Amazon to TEMU, the product images and basic information were exactly the same, and the sales volume could exceed 1,000 units a day, far exceeding the sales volume on Amazon.

Data shows that in the latest app download rankings, TEMU has dominated the US App download list for many days, surpassing the current hottest ChatGPT.

In fact, TEMU seems to have defeated the offline one-dollar store.

Imagine this scenario: a customer takes the key and drives to a one-dollar store, and then TEMU sends a discount notification through the application. The customer immediately places an order, and then they say, “Okay, I’ve spent money on TEMU, so I don’t need to go to the one-dollar store.” Juozas Kajiukanas, CEO of Marketplace Pulse, described the impact of TEMU in this way.

When Dollar General and Dollar Tree had to raise their price cap to $1.25 due to inflationary pressures.

These dollar discount stores may be more vulnerable because buyers are not always loyal, they care more about price.

TEMU covers fashion, home supplies, electronics, pet supplies, and other products, with prices ranging from around one to five dollars, and some even less than one dollar. Shipping is also available to your doorstep for free. Therefore, the direction of buyers is traceable.

However, many industry insiders believe that TEMU’s supply chain lacks transparency, and the low-price model does not bring loyal customers unless it can maintain low prices forever, but will the sellers cooperate?

TEMU uses full hosting, where the seller only needs to send the goods to the warehouse, and the platform completes the pricing, sales, marketing, logistics distribution, after-sales, and other aspects. Compared with platforms that require seller investment in manpower and operations, it is indeed more convenient, but the disadvantages are also very obvious, and sellers lack pricing power.

If the platform controls the pricing power, it repeatedly compresses the seller’s profits.

A few days ago, many TEMU sellers reported receiving a notice about the bidding rules for goods. The specific bidding rules are as follows:

1. Bidding for the same product will be conducted once a week, and whoever has the lowest price wins (Monday 9:00 am to Thursday 11:59 pm);

2. After the system initiates the bidding, the seller needs to confirm the invitation in a timely manner. Failure to confirm in time will result in bidding failure;

3. Goods that fail to win the bidding will be restricted by the platform for new listings and stocking, while successful bid products will not be restricted.

Some people speculate that even if a seller wins with the lowest price this week, if there is a lower price in the bidding next week, the seller may face a dismal situation of product unsalability or returns.

The requirement that Temu has for sellers can be described as “absolutely low prices”. However, how many sellers can cooperate on a long-term basis?

Finally, in 2023, everyone is discussing a topic: the rise of AI. In addition to ChatGPT, the popularity of AI intelligent graphics, artificial intelligence editing, and AI intelligent chatting remains high.

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