3 min. reading

Temu’s E-commerce Dominance: Surpassing eBay in Global Visits

In a mere two years since its launch, the Chinese e-commerce platform Temu has become a formidable force in the global online retail landscape. Its rapid ascent, exemplifying Temu's e-commerce dominance, has led it to become the world's second most visited e-commerce website, surpassing established player eBay. This remarkable achievement offers valuable insights into the ever-evolving dynamics of online commerce and showcases how Temu's e-commerce dominance is reshaping the industry.

Temu’s E-commerce Dominance: Surpassing eBay in Global Visits
Source: Depositphotos

According to data from Similarweb, as reported by DoNews, Temu now boasts nearly 700 million monthly visits. This remarkable achievement is not only impressive due to its swift growth but also because it has successfully disrupted a well-established market dominated by industry giants.

Temu’s e-commerce dominance is further emphasised by the fact that it’s the sole platform in the top twenty to have launched within the past decade. The last significant player to enter the scene was South Korea’s Coupang, underscoring the challenges of penetrating a space ruled by global behemoths such as Amazon, eBay, and Alibaba.

Aggressive Investment in Traffic Acquisition

Unlike most competitors, Temu’s traffic primarily stems from aggressive advertising campaigns, a strategy that has drawn criticism from various quarters. This focus on advertising has yielded an impressive 700 million monthly visits, a scale unprecedented among other retailers.

For context, while Amazon receives 2.7 billion monthly visits, predominantly from the USA, Temu operates in 79 countries, with the US market comprising only a small portion of its traffic. This highlights Temu’s aggressive global expansion strategy, positioning it as a formidable competitor on the international stage.

Unlike most competitors, Temu's traffic primarily stems from aggressive advertising campaigns, a strategy that has drawn criticism from various quarters. This focus on advertising has yielded an impressive 700 million monthly visits, a scale unprecedented among other retailers.

Source: Similarweb

Mobile-First Approach

Although Temu’s web traffic is significant, the majority of transactions likely originate from its mobile application. Within weeks of its September 2022 launch, it became the most downloaded shopping app in the US. It consistently maintains top position and currently ranks first in nearly 80 countries where it operates, underscoring the importance of a mobile-first strategy for e-commerce ventures.

Evolving Business Model

Initially positioned as an ultra-cheap marketplace for products directly from China, Temu’s business model is evolving. Today, 20% of its US sales originate from local warehouses, potentially indicating a shift towards a more sustainable and locally-managed fulfilment model.

This evolution suggests that Temu may gradually move away from relying on lenient rules that allow duty-free imports. As regulations tighten globally, with countries like Turkey increasing customs duties on foreign orders and lowering tax exemption thresholds, e-commerce firms can learn from Temu’s ability to swiftly adapt to changing market conditions and regulations.

Temu’s e-commerce dominance serves as a testament to the platform’s agility and innovative approach in the fiercely competitive online retail space.

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