Chinese retailer Temu is gaining ground over eBay in the US market

Chinese retailer Temu is gaining ground over eBay in the US market

Chinese retailer Temu is gaining ground over eBay in the US market

A newcomer to Chinese e-commerce Agodivision PDD Holdings Inc (NASDAQ:PDD), quickly overtook the veteran eBay Inc. (NASDAQ:EBAY) in terms of attracting repeat customers in the U.S., despite eBay’s nearly three decades of operation.

A recent study by Omnisend found that 34% of consumers shop on Temu monthly, which is more than 29% on eBay, Bloomberg reports.

This increase in customer engagement with Temu is due to the company’s heavy investment in marketing and promotional discounts.

Notably, Temu’s ads, including two Super Bowl ads, have been successful in driving customers to the platform, where they typically wait a week or more for products shipped directly from China.

Temu’s aggressive advertising strategies and social media presence, expressed in the “Shop Like a Billionaire” campaign, have contributed greatly to the company’s rapid growth in the competitive US market.

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The price increase caused by the pandemic has significantly changed consumer behavior – only 40% of shopping trips in the US start on this day Inc (NASDAQ:AMZN) last year, compared to more than half in 2022.

Temu’s growth reflects a broader trend in which consumers increasingly begin their shopping journeys on search engines such as Google (NASDAQ:GOOGL) by looking for better deals across platforms.

While Temu’s prices attract consumers, the company faces challenges in product quality and delivery speed, areas where competitors like Amazon excel with a wide range of fast and reliable services.

Despite these obstacles, Temu’s factory-direct sales model continues to gain popularity among price-conscious buyers.

Reduction: PDD stock was down 0.79% at $147.31 as of Tuesday’s last check.

Reservation: : This content was created in part using AI tools and reviewed and published by Benzinga editors.

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