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Despise Temu Understand Temu
Become Temu Beyond Temu!
This is the mentality change of most e-commerce overlords when facing Temu.
Temu with super lethality has swept the world, and many e-commerce platforms tremble. The price is outrageously low, backed by a strong Chinese industrial chain, an efficient operation team, rapid strategic decisions and landing These are the key elements of Temu's success.
As the hegemon of global e-commerce, Amazon has obviously noticed the threatening Temu 。 You need to know who Temu's parent company is, and how famous it is! When it first came into being, many senior executives in Alibaba laughed at the way of "chopping". As a result, "chopping" suddenly exploded, and the order volume soared. Today, the market value even exceeded Alibaba Group.
This story was not arranged by me, but actually happened. Because of such a lesson, all e-commerce overlords are afraid of Pinduoduo. Temu, their son in the field of going to sea, has also lived up to the expectations of the public. The speed of development can be described as rocket launch. Amazon is afraid, I think It hasn't directly threatened the hegemonic position so soon, but there must be levees.
Temu in Japan has been online for 10 months, and the order volume is also very strong. According to incomplete and accurate information channels, nearly 90000 small packages are directly flown to Japan every day. Although the return rate is not low, the number of download users in Temu Japan is also millions. It can be said that this result has been achieved in a short time—— It didn't spend much market budget, nor did it have fancy operation skills. The copy and page were very low, and it was just low price Are you convinced?!
At this moment, the Japanese Amazon must take action!
The picture is taken from Amazon's official account for opening stores worldwide
From official information: Amazon Japan will directly reduce the commission to 5% for low price goods below 750 yen (about 34.6 yuan) from June 1, 2024 。 In addition, this is for all kinds of goods. Only books, music, videos, DVD software and games in the strongest areas of Amazon's own business are not included in this adjustment.
Previously, Amazon Japan has lowered the commission for clothing category. In those years, he had ambitious plans to do something in the fashion category with traditional advantages of Rakuten in Japan, but now it is still difficult to improve. I can only say that, It's easy to shake mountains, but difficult to shake consumers!
However, this commission reduction policy, It's really good news for some sellers. For example, for making trinkets, 3C peripherals, mobile phone accessories, and some low-priced household goods, Amazon originally wanted to take more than 10% commission, but now it has directly become 5%. It can save a lot of money. It's all profit.
However, most sellers may not sell products within 750 yen. 750 yen is about 35 yuan. The commodity price itself is not high, but the freight in Japan is relatively high, starting from 400 yen. If you only sell a single commodity, it is really not worth it. It may be suitable for some small item sellers in Yiwu and Guangzhou. They use e - mail packages, some of which cost as little as ten yuan. This wave of commission reduction may lead to a wave of benefits.
But, writing here, I think of the classic game theory“ Prisoner's dilemma ”This is the most representative example in the non-zero sum game, reflecting that the best choice of individuals is not the best choice of groups. In other words, in a group, rational choices made by individuals often lead to collective irrationality. Although the dilemma itself is only a model, similar situations will frequently occur in the real price competition.
For example, Amazon reduced the commission, and you earned five or six points more, but you still haven't ranked first. So you think that if you lower the price a little more, it will directly impact Top1, and you will reduce the price by 5%.
The seller ranking the first, when he saw that your sales volume was coming up, he was panicked and had to stop it and kill it. So he also reduced the price by 5%. In the end, the two sides did not benefit from the commission reduction, but continued to maintain the original competitive situation.
However, consumers actually saw the price drop, so they stimulated orders. For both the platform and consumers, they have gained tangible benefits. For sellers, the classic prisoner's dilemma theory may lead to the fact that the price will not remain unchanged - just as the yen exchange rate depreciates again and again, 40% of sellers still insist on not increasing the price - most of the sellers' competition is based on the premise of killing others.
Classical Prisoner's Dilemma Theory Price War Model
Can Amazon really stop Temu by reducing the commission of low price goods?
I think the symbolic meaning is greater than the practical meaning. Because Amazon's consumers and Temu's audience are totally two groups. From our observation, Rakuten and Amazon are not particularly affected by Temu, but Yahoo and Qoo10 are both suffering. Just like the three hundred rounds of Didi Taxi and Kuai Taxi in those years, after tens of billions were burned in, no one died, and all the old three and four in the market were consumed.
Temu's aggressive approach has indeed caused a great impact on the market. This is a good thing. Especially recently, Temu is pushing the semi hosting mode. According to the feedback from the seller The Japanese site will also be online for semi hosting soon, and the price in Temu Japan is only 8.5% of Amazon's price (Assuming Amazon's platform commission is 15%) Temu will additionally subsidize the selling price, so the final selling price may be about 60% off and 70% off of the same product of Amazon. At this time, the seller does not need to pay extra advertising costs, but only needs to deliver goods on time and ensure quality.
This scene makes people sigh: In addition to the bayonet among the sellers, the "positive strategy" of the platform giants is also truly tragic 。
