According to multiple sources, Temu, the cross-border e-commerce platform under Pinduoduo, is set to launch its “semi-managed” service.
This move came after Temu shook up cross-border e-commerce with its “fully managed” service. The “semi-managed” model is set to go live on the U.S. site on March 15th.， followed by an immediate expansion to European sites by the end of the month.
Will Temu’s semi-managed service prove to be another game-changer?
The Essence of Temu’s Semi-managed Service
What are the differences between Temu’s fully managed and semi-managed services?
1. Store Distinctions: Fully managed and semi-managed, they will operate as two separate systems. Sellers already in the fully managed system must open a new store to switch to semi-managed.
2. Fulfillment Differences:
Fully managed sellers only need to send goods to domestic warehouses, leaving the rest of the fulfilment process, such as mainline logistics and end delivery, to Temu.
Semi-managed primarily targets sellers with goods in overseas warehouses. Under this model, sellers must take more excellent initiative by importing platform orders and shipping to consumers (buyers) while being responsible for reverse logistics such as returns.
3. Product Selection Differences:
Under the fully managed model, sellers must undergo processes like product selection, sending samples, version review, and image review, with lower autonomy.
In the semi-managed model, sellers can bypass these processes and list their products for sale from overseas warehouses on sites like those in the United States and Europe. Temu will then be responsible for perfecting product details and comparing prices.
Do fully managed and semi-managed services have common points?
Although there are differences between the two, Temu is responsible for critical aspects such as traffic, advertising promotion, and sales.
Most crucially, pricing control. Whether it’s fully managed or semi-managed, pricing control lies with Temu. This suggests that, at its core, Temu’s semi-managed service is essentially a “managed” service, or in other words, a “weakened version” of semi-management.
The Purpose of Launching the Semi-managed Service
The purpose behind Temu launching a semi-managed service is to address two issues: delivery efficiency and SKU diversity.
1. Delivery Efficiency: A significant challenge for Temu has been its slower delivery speed compared to Amazon Prime services and platforms like AliExpress, typically requiring 7-10 days. This slower delivery affects the user experience, increases the likelihood of returns, and damages the e-commerce ecosystem.
Statistics indicate that once the fulfilment time of a package exceeds seven days, each additional day increases the return rate by two percentage points. Fast and efficient logistics services can significantly improve the positive review rate and repurchase rate of store products.
Therefore, through the semi-managed service, by utilizing the seller’s overseas warehouses for direct shipping, Temu aims to bypass the domestic first leg and primary logistics time, enhancing fulfilment speed and alleviating the burden of slow delivery.
2. SKU Diversity:
Under the fully managed model, due to fierce price competition and slim profits, many suppliers are reluctant to join or drop out midway, leading to a lack of SKU（Stock Keeping Unit）diversity on the Temu platform and affecting the prosperity of the platform’s ecosystem.
Introducing the semi-managed model aims to attract sellers who already have inventory overseas, especially those who already have experience with overseas stocking on platforms like Amazon. This helps these sellers deal with unsold inventory and brings more product varieties to Temu, increasing SKU diversity.
Through these two strategies, Temu aims to enhance its competitiveness, improve delivery efficiency, and expand product diversity, thereby better meeting consumer needs and enhancing user experience.
Summary
Implementing the semi-managed service has not only improved the user experience on the Temu platform by offering faster delivery and a more comprehensive selection of products to meet consumer needs but also provided sellers with greater flexibility and sales opportunities.
Although this model retains some characteristics of a fully managed service, such as control over pricing, it significantly grants sellers more autonomy, helping to address the challenges they face with delivery and SKU diversity.