Amazon vs Temu, Shein, TikTok Shop: Who is winning the US e-commerce battle?

In the fierce battlefield of e-commerce, Inc (NASDAQ:AMZN) continues to dominate, but new competitors are emerging, such as PDD Holdings Inc“(NASDAQ:PDD) You, She inAND TikTok Store are making significant progress.

A new survey of more than 1,000 U.S. consumers by Wedbush Securities analyst Scott Devitt reveals some intriguing changes in shopping habits and consumer satisfaction that investors should watch closely.

Amazon’s dominance remains unshakable

Amazon remains the e-commerce leader, with 64% of consumers surveyed planning to spend more money on the platform this year, up 4% from previous surveys.

High customer satisfaction is a key factor, and Amazon’s strategy based on reliable deliveries and a wide selection of products is consistently yielding results.

Amazon is no longer just a place to make specific purchases, but is also seeing an increase in overall browsing interest, which is evidence of strong consumer loyalty.

Subject: Rising Star

Temu is quickly becoming a formidable player, with 23% of respondents planning to increase spending, up from 17% previously. Interestingly, 36% of respondents have made a purchase on Temu in the past three months.

Temu’s appeal lies in its discovery capabilities—45% of customers visit the site without thinking about a specific product, compared to 23% on Amazon. This browsing habit is key to Temu, indicating a strong potential for impulse buying and customer engagement.

Also read: ‘Temu is functional malware’: Arkansas attorney general files lawsuit against Chinese retailer, calling it a ‘data theft business’

Shein and the TikTok store: gaining popularity

Shein and TikTok Shop are also showing impressive growth. Shein saw 26% of survey participants make purchases, up from 19%, while TikTok Shop grew from 14% to 16%. These platforms are attracting interest from consumers looking for affordable, fashionable items, supported by aggressive marketing and promotional investments.

Competitive It’s warming up

Competition is heating up as these platforms eat into Amazon’s market share. Media reports suggest Amazon is responding with low-cost stores featuring goods from Chinese sellers, aiming to win back price-sensitive customers. But the distinct motivations consumers have for using these platforms create unique challenges and opportunities.

For investors, Amazon’s solid customer base and satisfaction ratings are a reassuring sign of stability. But the rapid growth and high satisfaction ratings of Temu, Shein, and TikTok Shop can’t be ignored.

These platforms’ innovative approach to product discovery and social shopping is changing the e-commerce landscape, making them compelling investments for growth-focused portfolios.

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Image created using AI via Midjourney.