Temu's third quarter sales have exceeded US$5 billion

According to 36Kr, Temu's sales in the third quarter of this year have exceeded 5 billion US dollars, especially in September, when it was one year old, the daily GMV even reached 80 million US dollars. 36Kr previously reported that Temu's GMV in the first half of the year was close to 3 billion US dollars, which means that the sales in September alone were almost the same as in the first half of the year. At this rate, combined with "Black Friday" and Christmas, Temu may exceed the annual GMV target of 15 billion US dollars.

Currently, Temu has entered 47 countries, and in September alone, it entered 10 countries, setting a record for the number of countries expanded in a single month. Among them, the United States, as Temu's first market, contributed most of the results, accounting for 60% of sales. In terms of user retention, in July this year, Temu's 7-day and 30-day retention rates reached 18.5% and 13.5%, exceeding eBay, SHEIN and Wish, and gradually approaching Amazon.

According to people familiar with the matter, Temu's break-even has not yet been put on the agenda, and there is no expected target for when it will be profitable. The growth rate of GMV and market size are the core pursuits at the moment. Recently, Pinduoduo's budget for Temu has also increased from 20 billion at the beginning of the year to 23 billion to meet the expansion needs of new markets.

According to several insiders, Temu's overall loss rate is currently around 40%, and the overall loss rate in the US market is 30-35%, slightly lower than the global average. In addition to the large marketing expenses, the logistics costs also account for a high proportion of the loss rate. According to insiders, the cost of a single Temu order is about US$32, of which the logistics cost is US$8-9, accounting for 28%.

It is understood that Temu now has more than 30 warehouses in China, distributed in Guangdong, Zhaoqing, Qingyuan, Dongguan, Foshan and other places. Compared with the beginning of the year, there has been a significant expansion and the number is still increasing. In order to improve efficiency, in early June, Pinduoduo sent the former general manager of Duoduo Maicai in Guangxi Province to Temu to manage all domestic warehouses.

Some merchants said, "Although the warehouse capacity is expanding, the number of merchants is also rapidly expanding." As of the end of September, Temu's SKU number has increased from more than 200,000 at the beginning of the year to nearly 1 million, and it is still increasing. In order to alleviate the concern of warehouse overflow, Temu is also constantly recruiting workers and transferring headquarters.

According to the latest data from data.ai, a global app market analysis service provider, Temu ranked first in the Korean app market with 399,000 downloads from September 25 to October 9. This is the first time that Temu has ranked first in the Korean app market since entering the Korean market in July this year. In addition to Temu, AliExpress also ranked third with 257,000 downloads.