Temu uses a semi-managed model

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commission reductions, on-time delivery subsidies, underwritten warehousing advance loans, exemptions from a series of warehouse fees, etc. Most of them are set up around the logistics link. In addition, AliExpress has also integrated semi-custodial into the POP system. Merchants can try this new model without reopening their stores and provide the favorable conditions of Choice channel.  to preemptively target merchants with local warehousing and distribution capabilities, which will also affect how Temu grows and expands in the future. In the past year, competition in the cross-border e-commerce market has become increasingly fierce and operating costs have risen. Many factory-based merchants have been


unable to bear the pressure and are facing problems such as inventory Malaysia Phone Number Data accumulation and declining profits. Although under the semi-custodial model, Temu still holds the pricing power in its own hands. Merchants cannot control the pricing themselves, and profits will be more tested. However, for merchants who are in urgent need of low-cost inventory processing, the semi-custodial model can help them. Solve the problem of unsalable goods. For Temu, on the one hand, it can consolidate the low-price mentality of the platform and increase the user scale. On the other hand, the merchants are responsible for the cost-for-cost performance of the contract, and the cost of platform expansion is extremely low, without the need to invest a large amount





of funds in supply. In the chain, it is conducive to accelerating market expansion. This also means that the entry of more local warehousing and distribution merchants can also help it increase its expansion speed and scale effect. At the beginning of this year, Temu announced that the United States, Europe, Southeast Asia, Japan, South Korea, Russia and other countries will be the first batch of sites to recruit merchants, covering categories such as clothing and jewelry, furniture and home furnishings, beauty and personal care, outdoor sports, and industrial equipment. etc., and at the same time, a support policy without commission was introduced.