Temu officially announced the adjustment of pricing rules for consumer electronics semi custodial activities in mainland China and Hong Kong, China. In addition to pursuing growth in the number of merchants, Temu will focus more on the revenue generating ability of merchants and the overall sales performance of the platform in the future.
1、 Temu pricing rule adjustment
Recently, Temu officially announced the adjustment of pricing rules for consumer electronics semi custodial activities in mainland China and Hong Kong, China.
The new regulations stipulate that the supply price and sale price of merchants will follow the principle of equal reduction. For example, assuming the original supply price of the product is 300 yuan and the daily selling price is 330 yuan, if the promotional supply price drops to 270 yuan, the corresponding promotional selling price must be reduced to 300 yuan.
In addition, the authorities will pay close attention to abnormal prices of goods, especially those with excessively high markup coefficients (i.e. markup rates exceeding 25%) and goods with reduced supply prices but unchanged selling prices.
This measure aims to maintain the price order of the platform, prevent merchants from obtaining profits through improper means, and protect consumer rights and interests; Simultaneously improving the overall operational efficiency and user experience of the platform, attracting more high-quality merchants to join the platform, and enriching the variety and quality of products on the platform.
For sellers, the adjustment of pricing rules this time has a significant impact and they need to be more cautious in formulating pricing strategies during the event period.
• Cost reduction and efficiency improvement: The synchronous pricing strategy reduces the pricing flexibility of sellers, so it is more important to accurately calculate the profit margin between selling price and cost, and reasonably reduce product costs through optimizing the supply chain and other means to ensure overall revenue during the event period.
• Avoiding violations: Based on the platform's focus on the markup coefficient and the timely adjustment of selling price updates, sellers should strengthen real-time monitoring of prices and pay attention to changes in platform rules to avoid being punished by the platform for violations.
• Pay attention to the market: Sellers should closely monitor market changes and competitors' pricing strategies to develop reasonable pricing strategies and improve product competitiveness. At the same time, merchants also need to strengthen communication and cooperation with the Temu platform, and can submit the SKC of goods to the operation team according to their needs.
2、 Temu focuses on semi custodial deployment
According to reports, Temu's semi custodial development strategy will shift from the original number of merchants settling in to GMV starting from the second half of 2024. This means that in addition to pursuing growth in the number of merchants, Temu will focus more on the revenue generating ability of merchants and the overall sales performance of the platform in the future.
This year, Temu's semi custodial team has expanded rapidly. In less than half a year, the size of the investment team has exceeded 1000 people, and the senior management has personally participated in the semi custodial investment work, demonstrating Temu's high attention to the semi custodial business.
Temu initially launched a fully managed model in the United States in September 2022, followed by a semi managed model in March 2024. Different from full custody, Temu semi custody's investment promotion is for all categories, and the performance requirements for investment promotion are also higher.
At present, Temu tends to support small and medium-sized businesses, helping them become large businesses with daily sales of tens of thousands of orders; And for big brands such as Unilever, Midea, Lenovo, etc., Temu may send a dedicated team to provide customized services to increase GMV targets and merchant revenue and profits.
In recent years, Temu has actively focused on its semi custodial management business, attracting and supporting merchants through various strategies, and has achieved significant results by occupying the top spot on the application download charts in overseas markets such as the United States and Brazil. It has a clear plan and layout for international expansion, and whether it is expected to achieve greater development in the field of cross-border e-commerce in the future remains to be seen.