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Should eBay, Amazon, and Etsy Sellers Be Running Scared from Temu?

Amazon eBay Etsy
Amazon eBay Etsy

Temu is the dollar store of online platforms, and it has marketplaces like eBay, Amazon, and Etsy on the run. That means sellers should also be paying attention to the platform, because it could have a direct impact on their sales, if it hasn’t already had a negative impact.

Digital Commerce 360 published a video on YouTube in February citing research that shows how quickly Temu has gained brand awareness and noting that it has become the number four most visited retail website in the US behind Amazon, Walmart, and eBay, according to data from Insider Intelligence.

With Temu expected to spend billions on marketing in 2024, Digital Commerce 360 asked, “Is $3 billion in spending going to be enough for Temu to overtake eBay in 2024?”

Entrepreneur Steve Chou has warned Amazon and Etsy sellers about the threat Temu poses, and in this YouTube video, he breaks down what Temu is, how it’s a threat to Amazon, the advantages it holds, and the challenges that Temu itself is facing. Chou is a seller who runs My Wife Quit Her Job, “an educational blog and podcast that teaches others how to sell physical products online.”

Temu is vulnerable to scammers and to legal threats over copyright infringement, Chou said, adding that it would face challenges when it expands from selling cheap items to branded goods. “As long as Temu faces questions about the quality of its products and its reputation as a reliable seller, top brand names will continue to stay away,” he said. He also said Temu could face challenges from US lawmakers similar to those facing TikTok about possible ties to the Chinese government.

Chou also said Etsy sellers are facing problems because Chinese sellers are returning to Etsy in this video published on YouTube today.

“Chinese sellers used to be on Etsy up until 2021, when they were silently removed due to worries about protecting the integrity of the handmade marketplace,” Chou said. But it recently added China back to the Etsy Payments approved country list, he said, “which is essentially like rolling out the red carpet for Chinese sellers to come back.”

The CEOs of major marketplaces have been forced to address the competitive threat that Temu and rival Shein pose. In a week and a half, we’ll learn if they have anything further to tell Wall Street analysts when they release earnings for the first 3 months of the year, with Amazon going first on April 30th, and eBay and Etsy following on May 1st.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.

Written by 

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.

11 thoughts on “Should eBay, Amazon, and Etsy Sellers Be Running Scared from Temu?”

  1. It’s too bad that Etsy continues to ignore true vintage items. The same goes for eBay who promotes sneakers and the like when they should be giving more attention to vintage. It may not be a complete solution, but it would help. Unfortunately, that would require both venues to admit they made a mistake in ignoring vintage in favor of big box and cheap Chinese junk.

  2. *** The TikTok Bill ***
    U.S. Congress is currently voting on the TikTok bill that will require that TikTok will need to break free from it’s China roots if TikTok is allowed to operate in the U.S.

    I also heard, that this new bill will allow Congress to go after Temu and Shein in order to push back on their low ball pricing that could ultimately kill jobs in the U.S.

    From solar panels to general goods…If the U.S. loses too many jobs because of directly sold cheap Chinese products, the U.S. economy will suffer.

    *** The downfall of Etsy ***
    Etsy is infested with cheap overseas products. Not only is this a problem for the American crafter, but now Etsy makes very little profit from cheap selling goods. Another issue is fraud….There are overseas Sellers on Etsy who sell wedding rings for $125.00 with claims that their jewelry is make from gold and sapphires. Chinese dropshippers are everywhere on Etsy.

    *** Morgan Stanley ***
    This past week, investment firm Morgan Stanley upgraded Ebay while downgrading Etsy. They say that Etsy’s growth is slowing while Etsy spends more on advertising.

    ***Ebay sells Luxury***
    Ebay is now making good money from selling Luxury, while Etsy allows fraudulent cheaply made overseas products to infest it’s website. Etsy, for sure, is competing with Temu and Shein.

  3. TEMU has been offering very (extremely) low prices for many of the items Amazon sells. Both offerings originate from China, so I am surprised at the comments here on not buying from PPC. (Last time I bought a toaster I could NOT find one NOT made in China. All US brand names are no longer made here.)

    TEMU recently announced a major change in their delivery of goods ordered. They stated that items would be shipped from the vendor & not consolidated into a “TEMU order.” I believe this is a huge mistake on their part, both in the actual delivery and on price increases–plus the possible addition of shipping costs and time-to-delivery. It will certainly be much more difficult for consumers to track the receipt of individual items on orders. Ordering from TEMU has been pretty successful for me, however, since the recent announcement I am no longer going to be placing orders from them.

    I still rely on Amazon and find that Walmart, Amazon, Chewy, etc are using AI to keep their pricing homogenized. You used to be able to price-shop online, but that’s becoming less & less effective. The only hope you have is that other vendors offer discounted or free shipping to give you any hope of a better price.

    Consumer cost is now EVERYTHING.

  4. *** Made in Mexico ***

    Last month, and to my surprise, it was reported that Mexico is now the largest import supplier into the U.S., and closely behind Mexico is Canada.

    So, that toaster you think is made in China may now come from Mexico.

    With increased political tensions between the U.S. and China, U.S. manufacturers are leaving China in droves. And if China invades Taiwan and it’s chip manufacturing, I have no doubt that the U.S. will impose stiff tariffs while closing those Chinese tax loopholes that will no longer make Temu and Shein appealing to consumers.

  5. RL15 says: it really is a shame that U.S. consumers willingly do business with communist countries.

    Have you looked around your home to see what is marked “Made in China”?

    It’s a global economy and has been for sometime. It is hard to get around it. You should be more concerned about the US politicians and US “news” channels who praise the communist leaders.

    1. Only 1 item. It was for a need and I could not find one not made in China.

      As for wants…0. If I can not find a non made in China item, I don’t want it.

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