Amazon’s large number of sellers’ sales volume collectively declined! Did Temu take away the traffic?

Did Temu reduce Amazon's sellers' sales volume?

Every time Amazon prepares for battle, it is a busy season for Amazon.

Recently, the FBA overstock incident has not been resolved for many sellers. And the overstock situation is getting worse and worse. Amazon is crazy about deleting and rescheduling, disrupting the entire operating rhythm of sellers and making them headache.

Misfortunes never come singly. Apart from the fact that goods cannot be put on the shelves, many sellers have also reported that the recent number of orders has gradually decreased.

May Order Volume Collective Decline?

Recently, some sellers have reported that Amazon’s traffic has dropped a lot in the past week, and the number of orders has also decreased significantly. And not only the US site, but other sites as well.

“Exactly the same. Obviously it is a summer product, but the orders have dropped by at least 30% against the trend, which is puzzling.”

“European station, auspicious three treasures category, May sales directly cut in half, ACOS doubled compared to April, and is already on the verge of taking buckets.”

“Don’t mention it, yours is only one-third, mine is all slashed, and then the advertising is also the same, clearly the words that were very accurate before suddenly became dozens of clicks without opening orders!”

“Starting from mid-April, sales suddenly deteriorated, which is sudden, the kind of 100 to 20, and it hasn’t recovered yet. Advertising still doesn’t work even though I’m still spending money.”

In fact, as early as early May, the phenomenon of traffic decline had already appeared. Some sellers also reported that the single click of their own advertisements was higher, but the advertising budget could not be spent, and the advertising consumption was also decreasing day by day. And according to the seller’s description, they did not touch the advertisement themselves.

According to the picture provided by the seller above, the number of orders is gradually decreasing. The number of orders on May 10 is less than half of that on May 1!

According to some sellers’ speculations, it seems to be related to Memorial Day public holiday in the United States, but last year at this time, traffic did not show such a serious phenomenon, and some sellers’ summer products did not increase in sales either.

However, many sellers believe that the biggest reason is still due to the impact of Temu:

“TEMU Coupon King is becoming more and more popular on foreign social media. It can be imagined what kind of situation these Amazon sellers will encounter. Especially those who sell standard products, their future is not optimistic.” said an seller.

Is the impact of Temu too great or are they being blamed?

In fact, it has to be admitted that since the beginning of Temu’s launch last year, it has started a crazy expansion mode, and these expansion actions have indeed attracted a large wave of traffic to Temu.

Many sellers also cannot resist the “temptation” and have started to participate in it, looking for new growth opportunities. Although many sellers have made a lot of money, I dare say that these are definitely supply-type sellers with a strong supply chain, not small and medium-sized sellers, because small and medium-sized sellers are still subject to Temu’s low-price strategy.

Previously, I wrote that Temu launched a bidding model, which allows some products to participate in bidding within a specified time. The products that win the bid need to send samples to the warehouse and enjoy exclusive platform traffic, while other failed products will be taken off the platform.

Recently, some sellers have provided feedback that products participating in the bidding mode will undergo weekly bidding for the same product. If sellers fail to participate in the bidding in a timely manner or fail to win the bid, they will be restricted from listing new products.

That is to say, for sellers without a strong supply chain, it is difficult to survive on Temu. Consumers benefit from low prices, but sellers bear the heavy burden.

Therefore, behind Temu’s strong traffic, the overall operating system is very problematic. For sellers who want to enter the market, I would advise you to be cautious!

In fact, in my opinion, the following reasons can be attributed to the recent decline in Amazon’s traffic:

1. The impact of inflation on the European and American public has led to a decrease in consumption capacity. As a result, consumption of non-essential goods has gradually declined, and consumers tend to choose lower-priced products;

2. Amazon’s competition is becoming increasingly fierce, and traffic is limited. The platform will definitely give priority to category best-sellers and sellers with higher bids;

3. Temu’s crazy promotion has divided the market’s traffic, giving Amazon a significant impact.

The reasons for the decline in traffic are certainly due to multiple factors. So, as the peak season is approaching, how should sellers adjust?

1. Screen more high-quality long-tail keywords and explore more traffic entry points;

2. Increase advertising bidding. If you want to obtain higher weight, you naturally need higher bids. Sellers can adjust their bids according to their budget;

3. Since internal traffic is limited, sellers can go to external sites for traffic diversion, explore competitors’ external traffic entry points, create some product-related videos, or write some product-related media articles to quickly obtain traffic and sales.

Overall, each seller’s situation is different, and the situation of each category is also different. It is not fair to generalize and say which party is at fault. The market is constantly changing and sellers need to adjust their operational rhythms to keep up with these changes. Otherwise, they will eventually be eliminated in the tide.

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