As the holiday shopping season unfolds, the e-commerce landscape is witnessing a dramatic shift. While Temu, the cross-border platform from Pinduoduo, makes remarkable strides in the U.S. market, Amazon's Black Friday performance appears less stellar than previous years. Is this the rise of a new contender or signs of weakness from the established giant?
Temu: The Dark Horse of Cross-Border E-Commerce
Since its launch, Temu has demonstrated extraordinary momentum. Within just two months, it climbed to the top of the U.S. Apple App Store shopping category, surpassing established players like Amazon and SHEIN. What's behind this newcomer's success?
- Aggressive Marketing: Temu has mastered customer acquisition through promotions like "Give 40%, Get 40%" campaigns, products priced at $0.01, limited-time free shipping, and hassle-free returns. This investment-heavy approach has yielded impressive short-term results.
- Black Friday Offensive: During the holiday season, Temu intensified its efforts with special Black Friday deals offering up to 70% discounts on selected items. Some sellers reported nearly 450 orders on Black Friday alone, with ambitious targets of 100,000+ orders overnight.
- Logistics Assurance: Temu has prioritized shipping efficiency, offering free delivery on nearly all orders with 7-15 business day delivery windows. Premium shipping options reduce this to one week for orders over $99 (or for $12.90 on smaller orders). The platform even compensates buyers with $5 credits for delayed deliveries.
Amazon: A Diminished Black Friday?
In stark contrast to Temu's success, Amazon—the traditional Black Friday leader—faced unexpected challenges this year. Many sellers reported disappointing sales volumes compared to previous seasons.
- Multiple Challenges: Amazon's performance was affected by several factors, including planned employee protests during Black Friday, consumer focus on Thanksgiving gatherings, and competition from the World Cup.
- Seller Frustrations: Many Amazon sellers expressed dissatisfaction with high advertising costs yielding poor returns and substantial storage fees without corresponding sales boosts. These issues contributed to widespread disappointment.
- Mixed Results: While some sellers struggled, others achieved significant success—with reports of nearly 1,000 orders, rapid inventory sell-outs, and sales volumes 4-5 times higher than normal. This polarization made for an unpredictable shopping event.
Cyber Monday: A New Hope for E-Commerce?
Despite Black Friday's mixed performance, many sellers are optimistic about Cyber Monday. Industry projections suggest the five-day online shopping period from Thanksgiving through Cyber Monday could generate $34.8 billion in sales—16.3% of total holiday season spending. Cyber Monday alone is expected to grow 5.1% year-over-year to $11.2 billion, potentially surpassing Black Friday as the year's largest online shopping day.
- Traffic Competition: Some sellers believe Cyber Monday generates even greater traffic than Black Friday, with peak activity extending from Friday through the following Tuesday.
- New Opportunities: For sellers, Cyber Monday presents a crucial chance to recover from Black Friday's challenges. Success will depend on product optimization, service improvements, targeted marketing, and efficient logistics.
Seller Case Studies
The holiday shopping season has produced varied results across different markets:
- A Japan-based seller reported exceeding ¥1 million in Black Friday sales, expecting to double that figure by day's end.
- A Germany-based seller saw daily orders increase 4-5 times above normal, surpassing 200 orders per day.
- A UK seller successfully cleared inventory through participation in Amazon's 20% off Black Friday promotion.
Outlook and Analysis
Temu's rapid growth introduces new dynamics to the cross-border e-commerce market. While Amazon faced challenges during Black Friday, its established brand and comprehensive ecosystem remain formidable. The emergence of Cyber Monday as potentially the season's peak shopping day offers sellers new opportunities to recover and thrive.
The competitive landscape continues to evolve, requiring sellers to adapt through innovation, service improvements, and enhanced customer experiences. Whether operating on Temu, Amazon, or other platforms, success will depend on understanding platform dynamics, precise customer targeting, and delivering quality products with reliable logistics support.