Temu launched in Europe about seven months ago, following its U.S. launch in September last year. Its business model involves dropshipping: shipping products directly from manufacturers, reducing costs and inefficiencies associated with traditional retail supply chains. Temu is backed by the Chinese tech giant and Pinduoduo owner PDD Holdings, which opened an office in Dublin this spring.
After its introduction, Temu quickly climbed the app download lists in various countries, captivating mobile users longer than other shopping apps with its substantial discounts, refer-a-friend promotions, and gamification elements. Ecommerce giants like Amazon and eBay saw their daily mobile shoppers decline with the entry of the Chinese newcomer.
Meanwhile, Temu has been working to improve its logistic proposition for shoppers in Europe. It has partnered with Mail Alliance in Germany, Poste Italiane in Italy, and CTT in the Iberian Peninsula.
CTT, the national postal service of Portugal operating in Spain through CTT Express, is expected to play a key role in supporting Temu’s growth in the Iberian market.
In 2024, the company plans to enhance its logistics partnerships to further streamline ecommerce delivery and returns processes.
in Ecommerce News