Amazon’s order volume has taken a big dive! Has all the traffic been redirected to Temu?

Did Temu take Amazon's order volume?

Recently, Amazon has been conducting large-scale verification of seller accounts. The sellers who received emails have gradually undergone verification. However, account verification has brought some aftermaths. Recently, some sellers in our big sales circle have expressed that their sales volume has plummeted.

Surprisingly, this is not an isolated case. Many sellers have experienced a drop in sales volume, and many sellers have echoed this sentiment by saying that their sales have also declined.

Since May, orders have clearly decreased…

It’s the same product, clearly a summer product, but the orders have dropped by at least 30% against the trend…puzzling

Even though I’ve advertised the new product, I don’t have much enthusiasm, and the bidding system is giving me such low prices that I can’t even get on the homepage with 200 impressions.

Oh my god, I thought it was just me, but it seems to be a common phenomenon.

Directly turning on the display mode, I don’t even know where the traffic has gone.

A large number of sellers have seen their sales plummet. Is it because the sellers’ operational capabilities are poor? Or is it the impact of the overall market environment?

Many sellers have speculated about the reasons for the decline in Amazon sales. Some people say that it is due to the impact of Memorial Day in the United States, which caused a three-day holiday and a drop in sales volume. However, this was quickly refuted because, in theory, holidays stimulate consumption. Since this year, many sellers have begun to complain about the decline in orders, and the reasons are diverse.

Most sellers tend to believe that Temu’s consumer stimulus has led to a negative impact on Amazon seller sales.

Temu competes for Amazon

Temu App Ranks High in Overseas App Stores

Since its launch in September 2022, Temu has been soaring high and ranking at the top of app stores. According to the latest data, Temu’s downloads in the first quarter of this year have exceeded the current hottest app, ChatGPT.

Temu has always been known for its low prices and has never deviated from its pursuit of low-price advantage. Some sellers have said that Temu invested heavily in the market in the early stages and many things were so cheap that they were almost given away for free. In order to retain the users attracted by the low prices, Temu is constantly gathering data. Once a lower-priced link appears, the seller either lowers the price or the platform pushes another low-price link. This has caused internal competition among the sellers over pricing.

Amazon’s Global Dominance at Risk?

According to a report by UPS subsidiary Ware2Go released on May 29th, Amazon is the most popular e-commerce platform in the United States.

Ware2Go surveyed 1000 American consumers and found that 76% of them had purchased goods on Amazon’s third-party market in the past year, which is 30 percentage points higher than the second-ranked Walmart (46%).

Moreover, Amazon’s Prime Day promotion will soon be coming in June. A survey was conducted among 1000 Amazon Prime members to understand their shopping intentions for this year’s Prime Day.

The study found that 80% of respondents plan to shop on Amazon this year for Prime Day. Of those who participated last year, 86% plan to purchase again this year and 63% of those who did not participate last year plan to shop on Amazon for Prime Day this year.

55% of members said they usually have specific products in mind to purchase on Prime Day, but they also buy some new products. More than half of the respondents said they had purchased products on Prime Day that they didn’t know existed before, and over 60% of respondents purchased unplanned products, demonstrating extremely high participation in Prime Day.

Amazon’s global dominance remains unshakable!!!

On the other hand, the price competition between Temu and Amazon is a direct cause of the decrease in user and seller volume on Amazon. Although Temu covers a wide range of categories, the prices are really low, some even less than one dollar with free shipping. So we can’t blame buyers for turning to Temu. However, winning on low prices does not create high buyer loyalty since they were attracted by low prices. Once another platform offers lower prices, they are likely to switch again. Fortunately, most sellers in our big selling circle are more rational.

Temu buyers don’t have control over pricing, and with the platform holding the pricing microphone, sellers can only endure repeated profit compression. How many sellers can persevere is unknown?

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