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The Future Of Online Shopping | CNBC Marathon

CNBC・39 minutes read

Temu is a popular U.S. shopping app known for being cheaper, addictive, and hosting famous creators like Sandler, aiming to grow its user base by 100 million in 2023, with revenue estimates between $236 and $726 per user. Walmart is intensifying its e-commerce efforts to compete with Amazon, focusing on expanding its assortment, attracting more sellers, and investing in speedy delivery programs.

Insights

  • Temu, a popular shopping app in the U.S., is aggressively promotional, attracting users with heavily discounted products and addictive features, aiming to grow its user base by 100 million in 2023.
  • Walmart, despite intensifying its e-commerce efforts to compete with Amazon, lags behind in market share, investing in initiatives like Walmart Plus and local delivery programs while focusing on expanding its assortment and attracting more sellers to its platform to enhance its online presence.

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Recent questions

  • What is Temu?

    Temu is a popular shopping app in the United States known for being cheaper, aggressively promotional, and addictive. It is compared to the Home Shopping Network for Gen Z and millennials, hosted by famous creators like Sandler. Temu quickly gained popularity due to a substantial advertising budget focused on social media and aims to introduce social shopping in the U.S.

  • How does Walmart compete with Amazon?

    Walmart is intensifying its e-commerce efforts to compete with Amazon, focusing on expanding its assortment, attracting more sellers to its marketplace, and investing heavily in initiatives like Walmart Plus, local delivery programs, and partnerships with Shopify. Despite its vast physical presence, Walmart lags behind Amazon in e-commerce, but is striving to increase its online presence and compete by offering a diverse assortment and attracting more sellers to its platform.

  • What is the controversy surrounding Temu?

    Temu faces scrutiny for potentially selling products made with materials from Xinjiang, China, in violation of US import laws. Some states, like Montana, have banned Temu due to cybersecurity concerns, linking it to foreign adversaries and citing malware issues with Pinduoduo, its parent company.

  • How does Walmart entice sellers to its platform?

    Walmart entices sellers by offering the opportunity to get products on brick-and-mortar shelves, exclusive access to programs like Open Call to pitch products for store shelves, and by expanding its delivery options, including Express Delivery for merchandise within two hours. Walmart is stringent in approving new sellers compared to Amazon, but is investing in attracting more sellers to its platform.

  • What is the future of livestream shopping in the U.S.?

    Livestream shopping's future in the U.S. post-pandemic is uncertain, with Amazon Live and social platforms potentially influencing its longevity. Merchants are resilient and tend to adopt successful strategies, hinting at a possible growth in live selling in the upcoming year. Amazon, TikTok, Instagram, and YouTube have ventured into live shopping, offering creators tools to go live and earn commissions on sales, which may shape the future landscape of livestream shopping in the U.S.

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Summary

00:00

Temu: Popular Shopping App with Controversies

  • Temu is the most downloaded shopping app in the United States, known for being cheaper, aggressively promotional, and addictive.
  • Temu is compared to the Home Shopping Network for Gen Z and millennials, hosted by famous creators like Sandler.
  • Walmart is intensifying its e-commerce efforts to compete with Amazon, but still has a long way to go.
  • On February 12th, 2023, during the Super Bowl, Temu launched a TV ad campaign, resulting in a significant increase in app downloads and daily active users.
  • Temu is an online bargain shopping marketplace where individual sellers offer heavily discounted products.
  • Temu, launched in 2022, quickly gained popularity due to a substantial advertising budget focused on social media.
  • Temu aims to grow its user base by 100 million people in 2023, with each active user estimated to generate revenue between $236 and $726 per year.
  • Temu's parent company, Pinduoduo, is a major Chinese e-commerce site that leverages its established strategy and logistics network to support Temu's operations.
  • Temu faces scrutiny for potentially selling products made with materials from Xinjiang, China, in violation of US import laws.
  • Some states, like Montana, have banned Temu due to cybersecurity concerns, linking it to foreign adversaries and citing malware issues with Pinduoduo.

12:57

Temu's $10 Smartwatch Resembles Apple Watch

  • A $10 smartwatch was purchased from Temu and shipped via the U.S. Postal Service to New Jersey in about a week.
  • The smartwatch closely resembles an Apple Watch in design, with similar features and appearance.
  • The watch has a circular charging port requiring a two-prong charger, which is of low quality.
  • The watch functions similarly to an Apple Watch, with apps and interface resembling Apple's operating system.
  • Temu aims to introduce social shopping in the U.S., following the success of Pinduoduo in China.
  • Walmart, despite its vast physical presence, lags behind Amazon in e-commerce, with Amazon holding 39.5% market share compared to Walmart's 7%.
  • Walmart is investing heavily in e-commerce, with initiatives like Walmart Plus, local delivery programs, and partnerships with Shopify.
  • Walmart is focusing on expanding its assortment and attracting more sellers to its marketplace to compete with Amazon.
  • Walmart's e-commerce growth is evident, with partnerships, acquisitions, and a focus on attracting sellers to its platform.
  • Walmart is striving to increase its online presence and compete with Amazon by offering a diverse assortment and attracting more sellers to its platform.

25:19

"Walmart's Marketplace Expansion and Seller Incentives"

  • Walmart removed Mpow and Aukey for buying reviews, which is illegal according to the FTC.
  • Walmart investigated and found no evidence of the same behavior from Mpow and Aukey on its site.
  • Walmart opened its marketplace to international sellers, leading to an increase in Chinese sellers.
  • Walmart is stringent in approving new sellers compared to Amazon.
  • Walmart entices sellers by offering the opportunity to get products on brick-and-mortar shelves.
  • Walmart sellers were given exclusive access to a program called Open Call to pitch products for store shelves.
  • Walmart dominates the grocery market with an 18% share compared to Amazon's less than 1.5%.
  • Walmart Plus offers benefits like free same-day delivery and exclusive sales events for $98 a year.
  • Walmart has expanded its delivery options, including Express Delivery for merchandise within two hours.
  • Walmart is investing in speedy local delivery programs and autonomous vehicle deliveries.

37:18

The Rise of Livestream Shopping on Social Media

  • Live shopping has been a sought-after feature for social media platforms, with Instagram and YouTube attempting it.
  • The label maker discussed in the text is unique for being inkless and utilizing thermal technology.
  • Livestream shopping gained popularity during the Covid-19 pandemic, especially in Asia, where Alibaba's Taobao Live app saw significant success.
  • Taobao Live generated $7.5 billion in transactions within the first 30 minutes of China's 2020 Singles' Day shopping festival.
  • The livestream shopping market in China was valued at $171 billion in 2020, projected to reach $423 billion by 2022.
  • Livestream shopping in China boasts high conversion rates, up to 40%, and lower return rates due to audience familiarity with products.
  • Key Opinion Leaders (KOLs) in China have amassed massive followings and fortunes through livestream shopping.
  • Amazon entered the live shopping arena in 2016, offering creators tools to go live and earn commissions on sales.
  • Amazon Live creators can earn through commissions, flat fees for regular live sessions, and sponsored streams with brands like Dove.
  • TikTok, Instagram, and YouTube have also ventured into live shopping, with TikTok introducing TikTok Shop for in-app purchases and YouTube partnering with Shopify for seamless shopping experiences.

49:05

Uncertain Future for Livestream Shopping in U.S.

  • Livestream shopping's future in the U.S. post-pandemic is uncertain, with Amazon Live and social platforms potentially influencing its longevity.
  • Merchants are resilient and tend to adopt successful strategies, hinting at a possible growth in live selling in the upcoming year.
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