Imagine spending months developing a best-selling product, only to see an emerging platform list nearly identical versions at lower prices, siphoning away your traffic, slashing your profits, and leaving you with unsold inventory. This scenario has become reality for countless Amazon sellers facing what many now call the "Temu Shock."
1. Temu's "Best-Seller Harvesting": A More Aggressive Threat Than Copycat Sellers?
The e-commerce newcomer Temu has captured global attention since its launch, expanding at breakneck speed with recent entries into Japanese and Korean markets and planned expansion into the Middle East. However, behind this rapid growth lies a controversial strategy that has Amazon sellers deeply concerned.
Multiple sellers report that Temu's product selection process essentially "scrapes Amazon's best-seller categories." Screenshots shared by merchants reveal holiday products like Halloween and Christmas decorations appearing in near-identical form to Amazon's top performers. "Sellers focusing on seasonal products should be extremely cautious with inventory this year," one frustrated seller remarked.
Temu's approach of directly mirroring Amazon's best-seller lists eliminates market testing costs for the platform but creates significant challenges for original sellers. A decade-long holiday decoration seller confessed, "The pressure grows heavier each year."
Some sellers describe Temu's strategy bluntly: "Find best-sellers from other platforms, tell your merchants to undercut those prices, and reward them with traffic." Many consider this approach more damaging than traditional copycat selling.
2. The "Wild West" of Pricing: How Temu Defies Conventional Wisdom
Temu's practice of replicating Amazon products at lower prices has left many sellers bewildered, particularly regarding what appears to be disregard for industry norms.
"We used to worry about borrowing a single product image from competitors," one Amazon seller noted. "Now Temu sellers copy entire image sets without modification—good or bad." This brazen approach has stunned established merchants.
Even sellers familiar with gray-market practices express astonishment at Temu's operations. "After years navigating Amazon's strict legal environment, seeing Temu's apparent disregard for U.S. regulations makes me question everything," admitted one merchant who occasionally engages in borderline practices.
Key concerns raised include:
- Direct copying of Amazon product images, including 3D renders, without apparent fear of mass complaints
- Widespread availability of patented and potentially infringing products
- Pricing strategies that may violate anti-dumping laws
Temu's ability to maintain rock-bottom prices stems from shifting risks to suppliers through aggressive cost-cutting. As one seller observed, "During global economic uncertainty, American regulators may tolerate Temu's loss-leading strategy—between bureaucratic inefficiency, geopolitical distractions, and domestic inflation, enforcement takes a backseat."
3. Temu's Achilles' Heel: Can the Discount Model Survive?
Since launching its U.S. operations last September, Temu has expanded to 27 international markets including Australia, Canada, and multiple European nations. The platform's three-pronged strategy—viral marketing campaigns, factory-direct pricing, and ultra-low-cost logistics through J&T Express—has left competitors scrambling.
However, significant obstacles threaten Temu's long-term viability:
Delivery Times: With products shipping from domestic warehouses, customers face 10-20 day wait times—a critical disadvantage against Amazon's rapid fulfillment.
Quality Perception: While effective for clearing inventory, Temu has become synonymous with bargain-basement quality that may limit brand potential.
Intensifying Competition: Emerging rivals like Shein and TikTok Shop adopting similar "fully managed" marketplace models could erode Temu's first-mover advantage.
Persistent losses from Temu's pricing strategy have led some to speculate the company prioritizes market share over profitability. "They're not building an e-commerce business—they're playing a capital markets game," suggested one industry observer.
Regardless of corporate strategy, individual sellers feel the squeeze. "I don't know if Bezos will end up under a bridge in three years," one merchant quipped darkly, "but at this rate, I might."
4. Survival Strategies for Amazon Sellers
While Temu presents undeniable challenges, Amazon sellers can implement several defensive measures:
Differentiation Over Discounts: Focus on unique designs, superior materials, and value-added services to escape price wars.
Precision Operations: Leverage Amazon's analytics tools to optimize listings, boost conversions, and reduce advertising waste.
Channel Diversification: Develop independent websites and social commerce channels to reduce platform dependence.
IP Protection: Monitor for infringements and pursue legal remedies when necessary.
Adaptability: Stay informed about industry shifts and adjust strategies accordingly.
The Temu phenomenon represents both disruption and opportunity. Sellers who innovate strategically can not only survive but potentially thrive in the evolving marketplace landscape.