Amazon vs. Temu: Which Platform is Better for Your E-commerce Business?
When sellers are deciding where to establish an online e-commerce business, Amazon is often the top choice. However, there is also increasing interest in Temu, a relatively new marketplace that’s been experiencing rapid growth. Each of these platforms has its own unique features that appeal to sellers and cater to different business models.
In this article, we will explore the differences between Amazon and Temu so you can determine which platform is better suited for your needs.
Table of contents
Overview of Amazon and Temu
While Amazon has a well-established reputation, Temu may still require more of an introduction. So, before we begin discussing the pros and cons of these platforms, let's provide a brief overview of each.
Amazon
Amazon has been on the market for around 30 years. Merchants can choose to sell their own brands or resell products from other companies. Amazon provides a variety of services to its sellers, such as order fulfillment, advertising, and more. It also offers over 350 million products from various categories that are sold in over 50 countries. The platform continues to grow, with its income expected to reach $62 billion in 2024.
Temu
Temu is a two-year-old Chinese marketplace that connects manufacturers or brands directly with customers, bypassing resellers who add markups. Recently, Temu expanded to include U.S. sellers, achieving a 17% US market share. The platform continues to grow, boasting 80 million users and nearly $12 billion in revenue in the first quarter of 2024.
As we can see, both platforms present lucrative opportunities for sellers to make money. However, they each follow different business models. Amazon welcomes sellers of all types, whereas Temu limits seller access to manufacturers and brand owners exclusively. In the next section, we’ll compare these distinctions in more detail.
Temu vs. Amazon
When comparing Temu and Amazon, several features are important for business owners to consider. Let’s focus on the top four most critical aspects:
Prices: Temu's prices are significantly cheaper than Amazon's because Temu eliminates intermediaries, allowing for direct sales from manufacturers. Additionally, Temu requires bulk purchases which lowers costs, while Amazon's individual item sales result in higher prices due to reseller markups. The higher price on Amazon is also justified by their superior shipping conditions, quality of items, and customer service that ensure a more positive overall shopping experience.
Product variety: Both platforms offer a wide range of products where you can buy almost anything. However, Temu primarily features unbranded or generic products, while Amazon includes well-known brands in addition to its own products.
Shipping: Temu provides a 90-day return policy with free standard shipping, which can take anywhere between six and 22 days. Orders over $129 also qualify for free express shipping, in which orders arrive in four to 11 days. However, due to most of their sellers being abroad, longer delivery times and possible customs fees may occur. Conversely, Amazon offers Prime members free two-day delivery, albeit with a shorter 30-day return window.
Trustworthiness: Temu's low prices often raise questions about the quality and authenticity of their products. Some customers even note that the items they receive don't always match the description. In contrast, Amazon employs strict measures to ensure product authenticity, leading to a higher level of consumer trust.
Competition: Amazon also acts as a seller of its own merchandise, creating direct competition for its merchants. This is not the case on Temu, where the platform does not compete with its sellers.
As we can see, Temu offers lower product prices, while Amazon boasts a bigger customer base due to its credibility, along with greater shipping efficiency. However, deciding Temu is better than Amazon for your particular business depends on your individual preferences and priorities. Let's discuss this deeper below.
Is Temu a Better Choice than Amazon?
If you're considering reselling products from other brands, Amazon is the clear choice, as Temu is primarily geared towards catering to manufacturers. However, if you're planning to sell your own brand, the decision between Temu and Amazon depends on additional factors such as the size of your company and the types of products you offer.
Temu may be more suitable for sellers who offer more generic or basic products with low prices, due to its potential for bulk selling and lower competition in certain product categories.
For individual sellers, Amazon might be more suitable, since you can start out with smaller inventory quantities, meaning less of an upfront investment.
Additionally, if you intend to sell products with higher prices, Amazon is the preferable platform, as it aligns more with those types of products. Amazon also offers services like FBA (Fulfillment by Amazon) and advertising solutions, enabling sellers to utilize ready-made tools to promote their businesses effectively.
While both platforms have their own advantages and disadvantages, if you plan to sell in the U.S., selecting Amazon is advisable. With its larger customer base, Amazon provides greater potential for sales and has higher credibility among customers.
Selling on Amazon vs. Temu
The processes of selling on Amazon and Temu share similarities, yet each platform involves its own specific steps. Let's examine the process for initiating sales on each platform.
How to Sell on Amazon
Starting out as a seller on Amazon is quite straightforward, and involves a simple six-step process. Let's explore each step in detail below.
1. Create an account.
Visit the Amazon website and set up your seller account. Provide the necessary business and personal information. Then Amazon will set up a verification call in order to finalize and approve your account.
2. Conduct product research.
When you’re launching your own business, you need to populate your store with products. Here are five of the most effective ways to find ideas for products to sell:
Social media: Explore influencers in your niche and conduct research using relevant hashtags.
Amazon Bestseller list: Review the most frequently-sold items on Amazon or those with badges (like “Amazon's Choice”).
Google Trends: Keep an eye on the most frequently-searched terms in your niche to gauge current trends and interests.
Analytical tools: Utilize resources like the AMZScout Product Database, which offers comprehensive insights into over 600 million products. With access to 16 customizable filters, such as competition level and monthly revenue, you can refine your search to meet specific criteria.
Industry events: Attend industry events to stay informed about emerging trends and potential opportunities within your niche.
In order to generate revenue, it's also necessary to sell items with high potential for profits. The primary criteria for these types of products are those with high demand and high margins. Let's take a closer look at how you can validate the viability of your product idea.
3. Assess profitability.
It’s important to ensure that the product you select for reselling aligns with your business goals by conducting thorough research. You also need to assess the item's profitability for selling on Amazon. These tasks become effortless when you utilize the PRO Extension by AMZScout. Just follow these steps:
1) Install the AMZScout PRO Extension. Start a free trial by entering your email address.
2) Open the PRO Extension. Enter any product name into the Amazon search bar. Click the AMZScout icon in the upper right-hand corner to see matching results.
3) Access the niche’s performance. Check the Niche Score in the upper right-hand corner. A score above 7 indicates a promising niche with low competition and high demand.
4) Check the item's performance. If the niche appears to be promising, select an item of interest from the list of results. Under the item, click:
Product History to assess sales trends and stability.
![How to check AMZScout Amazon Product History]( "AMZScout Product History")
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Profit Calculator to ensure a margin over 25% after all the costs and expenses, indicating profitability.
By selecting popular products with high margins with the help of AMZScout, you can ensure that an item is worth your time and effort to sell on Amazon.
4. Find a supplier.
Consider checking Alibaba, which offers a wide range of products for both reselling and starting your own brand. It’s important to verify the supplier's reputation, shipping costs, and minimum order quantity (MOQ) to find the best terms.
5. List products.
Create a product listing with high-quality photos and videos. Consider using AMZScout’s AI Listing Builder, which can generate compelling text saturated with the most effective keywords in just a few seconds, thanks to its AI functionality.
6. Fulfill orders.
Decide how you plan to deliver products to customers. You can manage the process yourself or delegate it to Amazon. By choosing Fulfillment by Amazon (FBA), you can eliminate the hassle of packing and shipping orders on your own, allowing you to focus on your business.
Amazon stands out for its user-friendly interface, plentiful opportunities to sell high-margin products, and streamlined logistics solutions. Additionally, there are multiple tools designed to streamline your business processes and simplify the tasks of product research and listing creation.
Now, let's take a look at the process of selling products on Temu.
How to Sell on Temu
Here's a brief guide for manufacturers on how to sell their products on Temu:
1. Create an account.
Visit the Temu website and find their email address, located in the "Partner" section. Once you contact them, you'll get a seller code and be redirected to enter your private and business information on the website.
2. Set up your company profile.
You can customize your company profile by adding a logo and a store description in order to attract customers. Specify your return address, accepted payment methods, and other relevant details.
3. List products.
Upload your product information, including photos and videos, and optimize your listing with keywords. Since Temu is known for its low prices, consider setting competitive prices for your products as well.
4. Fulfill orders.
Be sure to adhere to Temu's rules for packaging, including necessary invoices and documents. Provide tracking information for orders within two business days after an order is placed.
Your ultimate platform choice depends on your product offering and the specifics of your business. Keep in mind that Amazon can be a better choice for resellers or small private label businesses due to its wide array of seller solutions. Additionally, for domestic sellers, Amazon provides superior options and support.
FAQ
How can I make money on Temu?
There are multiple avenues for earning money with Temu. You can sell products on the platform as a manufacturer, or buy Temu products and resell them at a higher price on other platforms like Amazon. You may also participate in Temu’s affiliate and influencer programs to earn commissions on sales generated through your referral links.
Can I sell Temu products on Amazon?
Yes, you can sell products sourced from Temu on Amazon. However, it's crucial to ensure compliance with Amazon's policies. Additionally, note that selling Temu products on Amazon requires purchasing them yourself first, as Temu does not support dropshipping.
Is Temu safe?
Safety on Temu depends on several factors. For sellers, it's crucial to only accept verified payment methods (such as PayPal) and check and adhere to Temu's policies regularly. Buyers need to verify the seller's reputation, product quality, and authenticity before making a purchase.
Is Temu the same as Aliexpress and Shein?
All three platforms differ in terms of their product ranges, pricing, policies on returns and shipping, and customer service. Shein specializes in clothing and accessories, while Temu and AliExpress offer a wider variety of products. Temu also tends to feature lower prices compared to AliExpress.
Conclusion
When deciding between selling on Temu or Amazon, first determine whether you're a manufacturer or a reseller. Temu is suited primarily for manufacturers, while Amazon supports both business models. To ensure profitability, focus on offering the most profitable products. Utilize tools like AMZScout to identify promising products, ensuring success on any platform.
