The sudden closure of Anker's stores on the Temu US site has sent ripples through the e-commerce landscape, raising questions about the competitive tensions between major online marketplacesSearching for "Anker" on Temu now yields only third-party seller listings, with official storefronts like "ANKER Certified Refurbished Official Shop" and "ANKER Official Shop" showing a status of temporary closure and all products delistedThis abrupt withdrawal from a budding platform has sparked intense discussions in cross-border merchant groups, particularly about a potential "Amazon or nothing" scenario looming over sellers.

One e-commerce operator disclosed that several brands on Temu received urgent warning notifications that prompted them to remove their listings almost overnightAnker's store acted promptly, taking down nearly all its products by the end of the dayThis maneuver appears to be a response to Amazon's pressure on merchants to limit their affiliations with competing sites

While this pressure has yet to extend significantly to smaller sellers, it is a concerning trend for leading brands, as nearly all of the top twenty recognized names have now received cautionary messages.

Market analysts speculate that this shift may indicate Amazon's strategic move to reclaim its market dominance, particularly as it senses competition from platforms like Temu gaining tractionYet, the repercussions of this situation appear to be confined to the US for nowObservations from users in Europe revealed that Temu's German outlet, "Anker EU," continues to operate as usual, suggesting regional strategies differ considerably.

The question arises: what drew Anker to Temu in the first place? Recent annual app store data indicated that Temu has solidified its reputation as the most popular free application in the United States, clinching the top spot for the second time

This surge in popularity placed it ahead of alternatives such as TikTok and ChatGPTFurthermore, data from SimilarWeb indicated that in terms of global traffic, Temu ranks as the second-largest e-commerce website, following Amazon, while its user base reportedly spans 91% of Amazon's.

This meteoric rise has translated to significant revenue growth; in fact, Temu was responsible for 23% of Pinduoduo Group's total income this yearFrom January 2023 to 2024, Temu’s sales skyrocketed by an astounding 840%. Set against this backdrop, Amazon sellers began flocking to Temu in July, with Anker emerging as one of the flagship brands representing this influx.

Reports from the Yiwu Cross-Border E-commerce Association highlighted Anker's impressive performance on the platform, with their 5000mAh portable charger selling over 1,700 units by October 7. Altogether, Anker's two stores on Temu amassed sales exceeding 12,000 units, with the refurbished store leading in the headphones and accessories category.

As a top seller on Amazon, Anker's success on Temu inevitably influences the decisions of other leading sellers contemplating entry into this new marketplace

Anker operates on Temu through a semi-controlled model, whereby pricing is governed by Temu rather than the sellerObserving the pricing dynamics reveals that Temu strives to align prices with those on Amazon, even during high-demand periods like the Black Friday sale, where only refurbished products were featured in early promotions.

However, as December approached, new products also entered sales, with prices still aligned with Amazon’s listings, although occasionally undercut by Amazon’s pricesObservers speculate that Anker and Temu are experimenting with A/B pricing strategies as they navigate their future pricing policies—an essential component of market competitiveness.

Brands are understandably eager to maintain consistent market pricesThus, selling on Temu through a semi-controlled pricing model seeks to uphold market equilibriumFor Temu, merely matching Amazon’s prices presents a core dilemma: why would customers choose Temu over Amazon without any additional advantages? The low-price strategy is pivotal for Temu's rapid rise

alefox

Their slogan, “Shop like a billionaire,” practically encapsulates their market proposition.

In contrast, Amazon appears to be orchestrating a comprehensive attackIf sellers opt to maintain similar pricing on Temu, this undermines the low-cost advantage that Temu prides itself on, leaving it without distinctive features against AmazonCompared to Amazon’s well-established infrastructure, Temu is still building its operations without the benefits of schemes like Prime membership or robust logistics.

Temu's parent company, Pinduoduo, has leveraged extensive subsidies in China to secure brand partnerships, yet the same approach on international fronts proves trickyRecent events, including Anker’s store closures, suggest that Amazon is not willing to cede additional groundIf reports are accurate, it would signal Amazon's first notable enforcement of “either-or” conditions

Historically, Amazon has relied on restrictive pricing strategies requiring sellers to maintain the lowest price across the web, extending to their direct websitesThis pricing control is enforced by sophisticated monitoring systems that trigger warnings to sellers when discrepancies arise, often culminating in penalties that can include fines, inventory restrictions, or even product removals.

The implications of these pricing restrictions are evident—the prices consumers encounter on Amazon are consistently the lowest, a model that thrives on comprehensive sales mechanics including their Fulfillment by Amazon (FBA) serviceThough third-party sellers can opt out of FBA, it is noteworthy that 82% of sales for these merchants come from Amazon’s "Buy Box,” highlighting the platform's dominance.

As emphasized by industry observers, sellers who deem Amazon’s pricing policies unreasonable are often left with an illusion of choice; they may exit the Amazon ecosystem, but given the platform's sheer size and traffic, that decision is rarely practical

This conundrum echoes the "either-or" scenarios prevalent in certain Chinese e-commerce platforms, obliging sellers to align their pricing strategies closely with Amazon’s.

In this strategic landscape, Amazon retains its competitive edge in pricing while simultaneously securing pricing authority through its advantageous traffic channelsBut with Temu leveraging the cost efficiencies of Chinese manufacturing and supply chains, this established narrative begins to fray, exposing Amazon’s limitations in its restrictive pricing tactics.

Further complicating matters is Amazon’s recent roll-out of a low-priced marketplace, effectively broadening its competitive stance against TemuBy searching “Haul” within the Amazon app, consumers are directed to a new segment featuring affordable products spanning various categories, including apparel, jewelry, and home essentials, with many items priced under $10. This development hints at an impending, all-encompassing counteroffensive from Amazon as it prepares to grapple with Temu throughout 2024.