🚀 Temu overtakes Amazon
Temu has surpassed Amazon in global monthly active users (MAUs), Bernstein reported. This milestone reflects Temu's rapid growth in e-commerce. In 2024, Temu achieved over $50B in gross merchandise value (GMV). Experts project this to increase to $70-80B by 2025. Its local inventory model with higher average selling prices (ASPs) and faster delivery is driving its success.
📦 Competing with the giants
In the U.S., Temu has a major customer overlap with Amazon and Walmart. Amazon maintains advantages in quality and delivery speed, but Temu is closing the gap. Up to 50% of Temu's U.S. GMV now comes from local merchants. Temu’s focus on local sourcing and improving product quality highlights its strategy to win over loyal customers.
💰 Scaling profits through strategy
Temu's road to profitability may be swift. Its massive user acquisition spend can now slow, given its established customer base. The company is prioritizing higher ASPs and reducing buyer incentives to drive profitability. By optimizing pricing—set by the platform rather than sellers—and ramping up local fulfillment, Temu is evolving its business model.
📊 Offline spending as growth fuel
Rather than taking customers solely from Amazon or Walmart, Temu is attracting offline spending. As consumers increasingly shop online, Temu’s value-driven approach appeals to price-sensitive buyers. With its growing infrastructure and GMV projections, the e-commerce game is changing. Temu is on a trajectory to redefine shopping trends globally.
Can Temu’s rise challenge Amazon’s dominance?
