Pinduoduo Temu plans to launch semi-custodial mode this month

According to Cailianshe, Pinduoduo's cross-border e-commerce platform Temu plans to launch a semi-hosted model this month, which will provide an opportunity for some cross-border e-commerce companies to move in. Industry insiders revealed that under the semi-hosted model, Temu will still be responsible for product pricing.

"Temu started semi-trusteeship in mid-March, and we are still in the process of business negotiation." The media called the securities department of Zhiou Technology as an investor to learn that due to the volume and size of the product, it is not suitable for domestic small-package air transport. Previously, under the full trusteeship model, the company did not cooperate with Temu.

Under the semi-hosting model, Temu plans to recruit sellers who have overseas warehouses, have stocked goods overseas, and have local delivery capabilities. Sellers can import platform orders into the warehousing and logistics system and manage warehouses, distribution, and delivery fulfillment by themselves. This model is scheduled to be launched on the US site on March 15 and open to the European site at the end of March.

A related research report from the trade and retail team of Minsheng Securities mentioned that in terms of the average order value range, Temu is US$35, Shein is US$70-80, and on Amazon, the price of similar products is about 2.5 times that of Temu.

It is worth mentioning that last month, Dianxiaomi ERP announced that it had taken the lead in connecting to Temu semi-hosting, supporting product listings, and increasing store operation and management efficiency at a rapid pace, helping Temu sellers achieve all-round growth in their overseas business.

According to reports, Temu's previous full-hosting model was that merchants only needed to send goods to Temu's domestic warehouse, and the platform would help sellers solve difficulties such as promotion, warehousing, traffic, and delivery. Even distribution, customer service, traffic, and after-sales were also the responsibility of the platform. The semi-hosting model launched this time is mainly for sellers whose goods are in overseas warehouses.

In general, under the semi-hosting model, sellers need to open a new store and choose the semi-hosting service, and are simultaneously responsible for uploading products, filling in basic information, maintaining inventory, and completing delivery fulfillment. In other words, they can skip the processes of product selection, sample delivery, version review, and image review. TEMU is responsible for completing product details, assisting with price comparisons, listing products on the US, Europe, and other sites for sale, and providing consumer customer service support. Semi-hosting services provide sellers with more flexibility.