The E Hustle 39: Temu is coming for your business - what are you doing about it?

temu Jul 06, 2024

This edition of the e hustle is brought to you by Wayflyer: Purpose-built financing for fast growing eCommerce brands.


In early 2024 I made a prediction with my friend and business partner at Ecom Nation, Mal Chia. We predicted that Temu would expand rapidly in many countries, including Australia and The US, and crush a number of local businesses.

Well, it's happening, and here's proof. 

12 months after launching in Australia, they’re the 5th largest online retailer in the country.

Check out the image below, which shows the incredibly rapid growth in Google searches for the term "Temu" in Australia.



12 months after launching in Australia, they’re the 5th largest online retailer in the country - and they're just warming up.

Not effecting your business? Your customer doesn't rate it? Well, they sell just about everything, so think again.

With retail stagnant at best (declining in many months), we have a player here who has come in and basically removed $1.3 billion dollars in consumer spend - yanked it right out of the market.

In other words, that's $1.3 billion less in spend that is out there for online stores that aren't Temu.

There is every chance you will see your products on Temu. Why? Because Temu connects Chinese manufacturers with consumers - your consumers.


Are you effected?

Well, start by Googling your products and see if Temu appears.

If you've seen a rapid decline in sales, conversion rate, impression share, or are generally having to spend more to keep up, then Temu could be stealing impressions, traffic and customers.


How are you standing out from an increasingly crowded market?

If Temu allows manufacturers to list products for direct to consumer sales, there is every chance that your suppliers could be selling on Temu.

So if there's a bag selling for $25 on Temu that you sell for $149, what is the difference?

Sure you might change a zip here, or add a stitch there, but essentially it's the same product.

If two identical products sell for different prices, the only significant difference is the brand attached to the product.

Your goal is to elevate your brand to be significant. Ethical. Influential. Cool. Whatever is is. You need to create a brand that people are proud to be a part of, and are prepared to use more than the cheaper alternatives. Most importantly, a brand that people are prepared to pay more for.

The other thing you can do is create unique product.

A reminder on how to create a product from scratch here


Don't even try and compete on spend - or price. 

I've been saying it for a long time now, but if your strategy is to go on sale, you will never out-cheap Temu.

If your strategy is to spend more on Facebook ads - guess what? So is theirs, and they have a lower target ROAS than you, and a bigger war chest than you.

You will not outspend Temu. You do not want to enter a bidding war with Temu - but you can be sure they are happy to enter one with you.


Is this impacting your business?

Has your impression share fallen off a cliff this part year?

Have your sales tanked out of nowhere?

Has your conversion rate steadily declined?

Have you noticed your competitors suddenly dropping their prices to keep up with Temu?

$1.3bn has suddenly been removed from our market - there is every chance that could be some of your sales.

This is another significant challenge for online retailers. I've been through the Global Financial Crisis, the Covid rollercoaster, and now this. The strongest brands are breezing through the Temu threat - not the cheapest brands, nor the biggest spenders.

Accept the challenge and embrace it. You always need to find ways to make your brand stand out, Temu is just a reminder of that.

Until next week,





If you want to work with me, here's how.

1. Take my online course for beginners.

2. Scale your existing business: Reply Scale to this email.

3. Book me for speaking: Reply to this email

4. Work with my marketing agency Ecom Nation.