China's Temu Takes Over 17% Of US Market Share, Cutting Jobs From American Amazon And Decimating Small Businesses

🌈 Abstract

The article discusses the rise of the Chinese e-commerce platform Temu in the US market, which has captured 17% of the market share, posing a challenge to traditional American retailers like Amazon, Dollar Tree, and Five Below. Temu's competitive pricing and discount offerings have made it the top shopping app on Apple's App Store, surpassing Amazon, Target, and Walmart. The article also discusses the ripple effects of Temu's growth, including job cuts at Amazon's Buy with Prime workforce and significant closures and layoffs at discount stores like Dollar Tree and 99 Cents Only Stores.

🙋 Q&A

[01] Temu's Rise in the US Market

1. What is Temu's current market share in the US?

• Temu has captured 17% of the US market share.

2. How does Temu's pricing and discounts compare to traditional US retailers?

• Temu offers significant discounts on items compared to prices on Amazon, and its discount codes allow consumers to enjoy even greater savings.

3. What is Temu's current ranking on the Apple App Store?

• Temu has become the No. 1 Shopping App on Apple's App Store, surpassing Amazon, Target, and Walmart.

4. How does Temu's shipping compare to Amazon's fast delivery?

• Temu opened its marketplace to US warehouses last month, which can significantly reduce shipping time and allow US retailers to handle fulfillment and shipping directly.

[02] Impact on US Retailers and Businesses

1. What is the impact of Temu's growth on US dollar stores?

• Temu is successfully challenging US dollar stores like Dollar Tree and Dollar General, accounting for nearly 17% of the market share in the United States.

2. What actions have US retailers taken in response to Temu's growth?

• Amazon announced it would lay off 5% of its Buy with Prime workforce, which equips retailers with fulfillment and delivery services.
• Discount stores like Dollar Tree and 99 Cents Only Stores have announced significant closures and employee layoffs, citing changing consumer demand and economic challenges.