Temu will launch a "semi-custodial" model

Temu, a cross-border e-commerce platform under Pinduoduo, will launch a "semi-hosted" business in addition to the "full-hosted" model. According to Ebrun, the first phase of Temu's semi-hosted business is scheduled to be launched on the US site on March 15, and will be expanded to major European sites at the end of the month.

In terms of the basic model, Temu's semi-hosted service is aimed at sellers whose goods are located overseas. The sellers can import orders into the platform and fulfill their orders by themselves. In the previous "full-hosted" model, the platform is responsible for the entire sales process including logistics fulfillment, product operation, traffic distribution, and after-sales service. In other words, the merchant only needs to send the goods to Temu's domestic warehouse, and the subsequent cross-border logistics and express delivery will be taken care of by the platform.

Under the semi-hosted model, merchants need to reopen stores and choose semi-hosted services. They are responsible for uploading products and filling in basic information while maintaining inventory. They can skip the steps of product selection, sample sending, version review, and image review. The platform is responsible for completing product details, comparing prices, listing products on US or European sites for sale, and providing consumer-oriented customer service support.

Temu's investment materials show: "(The semi-hosting model) reduces the burden of marketing and customer service for sellers; improves the market competitiveness of products through the expertise and resources of the e-commerce platform; and improves consumer satisfaction through fast and direct delivery."

It is worth mentioning that AliExpress has continuously increased the "semi-trust" this year, including a number of cash subsidies. The recent investment directions of AliExpress include: commission reduction, semi-trusted goods entering the warehouse are 100% free, JIT delivery can also enjoy a 50% commission reduction; on-time delivery subsidies, on-time delivery during the Spring Festival, each order enjoys a maximum subsidy of 2 yuan; "underwriting"-like advance loan, semi-trusted popular goods entering the warehouse, 60% advance loan; exemption of a series of warehouse fees, semi-trusted goods entering the warehouse, door-to-door collection fees are completely waived, warehouse operation fees are completely waived, and warehouse rent is completely waived.

In terms of form and operation, there is no difference between semi-hosted merchants and third-party merchants, and the ownership of goods and operation rights still belong to the merchants. The only change is that when the goods are released, they are published using semi-hosted templates.

In addition, Alibaba International Station will also launch a semi-hosted service. The semi-hosted service of the International Station will provide merchants with exclusive marketing activities, door-to-door logistics fulfillment, reverse return services and other operational hosting solutions, allowing merchants to focus on production and sales and lower the threshold for going overseas.

According to the official poster, the project will start soliciting investment on January 5, 2024, and is expected to go online on February 3, 2024 (Beijing time). The first phase will open six national sites including the United States, Canada, Mexico, the United Kingdom, Germany and France, and in the future, 20 national sites including the Southeast Asian market will be opened.

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