Start your e-commerce with Temu Dropshipping! As you may know, today, we are going to discuss about the currently trending topic of the Temu dropshipping business model.
Temu operate is an online marketplace that began in 2022 and is owned and managed by PDD Holdings, a Chinese conglomerate in eCommerce. It has evolved tremendously, rubbing shoulders with global players such as AliBaba, Amazon, eBay, Alibaba, Shein, and the lot. The established online store has active users from the US, Canada, the UK, Germany, among other nations; the store has over 100000000 active customers.
Temu has also attracted a lot of attention from the business owners that engage in dropshipping and this can be easily seen by checking the trends on Google on how the interest on the search terms ‘Temu dropshipping’ has surged in the current few months.
Temu Dropshipping: Introduction
Temu dropshipping is more or less engaging in dropshipping within the platform either as a seller or relying on the platform’s supply. In the first type the trader has to maintain records of the goods they have in their possession, a record referred to as inventory while in the second form, the trader does not require this inventory. If you are searching for the second job or another source of income you presumably have no money to buy inventory, so you have to use Temu as a supplier.
Is Temu Dropshipping Permissible?
First things first. What about droppshipping on Temu: are you permitted to do it? Of course, everyone wants to start a legal business and not violate someone’s rules or even sit a date with the authorities, that is why it is necessary to study this before starting.
On their official website there is a statement that says dropshipping is not allowed there. But should you give up just from this? Not just yet.
Yes, you can dropship from Temu since the company now states that you can buy an item directly from their website. From the deep screening of the policy and according to my understanding, what Temu means by not supporting dropshipping is that there is no dedicated place for dropshippers; for instance, the AliExpress DS Center in the AliExpress dropshipping. But there is a category with individually selected products for dropshipping .
However, bearing this in mind let me affirm that you can dropship from Temu although there are drawbacks that we will discuss in the subsequent sections.
Why Dropship from Temu?
Note that there are many places you can make dropshipping from like for example AliExpress, Amazon, Sheing, Alibaba and many more. But why Temu, a new company, yet we have prominent marketplaces that have been operating for many years now? Now, knowing that, Temu is the best in several aspects.
- Wide product range
- The best prices and numerous sales
- Faster shipment
- Flexible return policy
Being an established store, Temu offers products in 29+ categories. It equates the industry giants in an industry conversation regarding Alibaba and AliExpress; thus, regardless of your interest in fashion accessories, wristwatches, jewelries, home appliances, toys & games, pet needs, or health & beauty products, Temu has something for everyone. Surprisingly, one can find many items that are sold on other platforms obtainable here.
Temu also renowned for its cheap products which are some of the approaches that have seen the company expand in a single year. You can source products that you wish to sell starting at $1 and still be able to make some considerable profits. Promises of price reductions, on the same note, are equally rife.
Most of the sellers are located in China; however, Temu has its offices and warehouses in the USA, where most of the products are stored. This puts you in a vantage point in terms of shipping, because your customers will receive their orders pretty fast though there are exception where they may take a while which is expected from drop shipping.
Easily, the best is the 90-day return policy which helps in boosting customer assurance. Always keep in mind that, buyers are more comfortable in buying from you if at one point you give them a longer return period.
Problem of Orange Packaging
Temu can be considered a good supplier for the dropshipping business in general, but there are certain disadvantages you should be aware of and possibly correct to eliminate the weaknesses.
The largest problem is that packages are sent in an orange package with the company logo, and the customer immediately knows that the item is purchased in Temu. Perhaps the next time they might order directly from Temu because they have variety of products for sale online.
Of course, you may also experience shortcomings such as poor quality of the products or late delivery among others, but none of this should be the cause of the abortion of the mission. Gentlemen, ladies, and everyone, I have good news: Temu dropshipping is very much alive.
How to start to dropship from Temu?
We know you are a newbie, and you probably do not know how to approach it or how to level up. Here, in this segment, the visitors of the website are introduced with the step-by-step approach of how to start the temu dropshipping business.
84% of the e-commerce retailers contend that the biggest challenge to undertaking dropshipping business is identifying a supplier.
Of course, you now have a dependable supplier in Temu so you have pulled the starter already. Let’s start revving up.
Step 1: Product Research
To date, there is no definite statistic, but people with experience in dropshipping note that only 10-20% of all presented businesses are successful, and one of the reasons for their failure is the targeting of the wrong product.
First of all, it is necessary to locate a beneficial product that would create a proper basis for a Temu dropshipping business. The following are some of the aspects that define a winning product;
- Unique
- Not available locally
- Solves a problem
- High profit margins
- Size
- No competition
- Not prohibited
A perfect product in drop shipping is something that leaves people gasping in ‘wow’; a product that customers will not find at their local supermarket and which addresses a need in the market. The price levels should also ensure high profitability range of 20-40% and the product is shouldn’t be bulky to ensure low shipping costs. Of course, there are just shouldn’t be many sellers with the similar goods, and the item, by all means, should not be on the list of forbidden products.
Well, now this is a big one; what should you look for when you are searching for the right product to advertise on Temu?
Well, you might actually prefer to go the long way – Manual product research, might be your choice if you are a beginner. But this can be very tiring and more often not yield the desired results in the long run.
Milions of items are available in Temu and doing the categories one by one might be very tiring. Apart from it, no one will be making decisions based on information collected from databases.
The best approach is using a product research tool such as Easync that will display all the products that are popular at that certain time. It also further processes the critical figures to enable one come up with the potential profits of a product.
I also have to point at the fact that Temu provides deep information on the product analysis, concerning the orders, the profit and order volumes, the ratings, the competitors and so on. All this information can aid in establishing if an item has the potential of becoming a winning product.
Step 2: Selection of Sales Channel
Finally, you have identified that perfect product from Temu seller, the big question that follows is, where would you be selling your product? A consideration for any business is the sales channel since this determines both the profitability and longevity of the business.
Today there are numerous sales channels that can be used which has its pros and cons as well. The choices in this case is that you can either sell through marketplaces or open your store.
(a) Selling on Marketplaces
Selling your products starting with marketplaces that have been trending online such as Amazon, eBay and others are ideal for a new seller. The beauty of joining already established groups is, you find that you have a pool of viewers, which saves on the aspect of marketing. Thus, you can dedicate your effort to sourcing for the right products to market and ensuring customer satisfaction.
You should understand that there can be fees. For instance, I spend $39. 99 a month for the Amazon Professional Plan, though you will begin with the individual plan at $0. 99 / item sold. Regarding eBay, you find that there are insertion fees and the final value fees.
(b) Creating Your Store
So, if you want to have complete dominion over your business as well as the brand that you are marketing, then it is preferable that you open your own store. If desired one can develop the online store from ground up and make sure it is in line with your other branding efforts. The second is through the use of eCommerce builders that include Shopify, Woo commerce, and Wix. One way or the other, there will be losses incurred.
Website development from scratch is the priciest, considered that you’ll require contracting a web developer, purchasing for a web domain and hosting, integrating features among many others. It is much easier to just use something that is prebuilt because they already come with everything and even costs a fraction – just monthly subscription fees. Many platforms’ subscription costs can be illustrated by Shopify subscription costs that start from $32.
Now, what is the choice that can give a better result?
Well, it depends. To beginners, it is advisable to sell on marketplaces because there is usually a ready customer base. However, you can open a personal store if you wish to keep a close control on your business and do not want to face account bans and restrictions.
Step 3: Creating Listings
You have now a product(s) in mind and channel of selling, the next step is product import. This is a crucial phase, and it might be the make or mar since product listings influence some elements such as visibility, conversion, among others. Also, ensure that the product titles are properly written for SEO concerning the various SERPs. As to the content, they should fill in all the necessary details, characteristics of the product, approximate delivery time, and the correct pictures.
Then, in the process of PEP you must determine your prices Next. Peep around to ensure that your pricing trend is moderate to enable you get orders despite having to offer relatively low prices. Ensure that the last price comprises of the buying price, any extra charges that the buyers have to meet, as well as your profit margin.
I guess at the initial stage, you can manage product import and pricing yourself, but as soon as you start receiving more orders, you will need an option to, for example, import hundreds of products at once using Easync and manage your repricing without mistakes.
Step 4: Marketing
You now have a running store with products and all the particulars for a purchase to be made. Even at this stage, I was already tired when launching my first store, but Stanley Nieh of Do Dropshipping was on my neck, informing me that it was still early.
Screw it up here because this is where most companies stumble.
This means that you should empower a clear and detailed strategic marketing communication plan in order to push your products into the market. Just bear in mind that there are so much more of the same dropshippers out there, so you must differentiate yourself. The marketing strategy will heavily depend on the sales channel you are going to employ.
Easy strategies you can focus on include social media like Tik tok, Facebook, and Instagram. For those with possibly their personal web pages, SEO will also come in handy if one wishes to get inorganic traffic, but for faster sales ads works best. Sellers using marketplaces such as Amazon and eBay also have integrated marketing features.
Free shipping is also something you should also take into consideration. Focus on selling products that will give free shipping or a plan that intends to make products free shipping. Analyzing the numbers, 90 percent of clients stated that they made more purchases when there is an opportunity to get free shipping and 24 percent revealed that they will spend more to qualify for free shipping.
But that’s not all.
You also have to follow a reliable customer support policy. Offer multichannel support and do not let the customers hear the “broken record” effect. Most importantly ensure that the customers are informed o n the status of their order frequently.
Step 5: Fulfilling Orders
You online store should be up and running by now and you have noticed orders coming through. Even if they are one or two orders, it is pretty inspiring; yet as Nieh always says, there are no breaks.
Thus, you have to ensure that all orders are met within the given time frame. However, it is your role to relay the order to Temu alongside the details of the client, and it will be the element of Temu to make sure of the progress of the order. But make sure that there is always feedback on the status of the order from the side of the customer. Make sure they can track their order as a survey indicates that 90% of customers want to track their order.
Scaling of Temu dropshipping store
Apart from that I said above, i have come to realize that in dropshipping business, there is no room to relax. One has to always pull out all the stops in an attempt to grow the business, make it last, and be ready for the challenges of the future as eCommerce evolves before the world. In this last step, we are going to discuss the aspect of scaling your business.
- Automation
- 3PL Fulfillment Partner
Since you hinted that your Temu dropshipping business is a side hustle or you do not have much time to attend to the business personally, you should consider how you can put this business on auto-pilot. This might include optimizing research on products, automatic import of products, repricing, stock management, and marketing among others. In this manner, one may be able to save a lot of time and even discharge time warranting mistakes.
Second, if the firm considers reaching out to the customer and aimed at establishing trust, it is advisable to seek the services of a 3PL fulfillment company. When your orders are shipped in the familiar orange package that now represents Temu, you may never see that person again. The only way to avoid this is associating with a 3PL company who will repackage the order and deliver it to your customer this way, the customers will know that you are the seller not Temu.
Alternatives of Temu Dropshipping
However, the effectiveness of Temu dropshipping has merits, you might feel that the blind dropshipping option is not provided by Temu, thus this means that many people will shift to Temu next time rather than again buy from you.
Your only remedy in this instance is to engage a 3PL company which could put a pressure on cart value, hence sales.
Thus, here are some of the Temu marketplaces you could consider changing your focus to AliExpress.
As being a part of Alibaba Group, AliExpress is unquestionably the best supplier for dropshipping. If not Temu, you can begin dropshipping with Aliexpress. It has millions of products and supplies and the rate at which they sell their item is also very cheap and impressive. It gets better.
It is possible to request AliExpress not to attach the original invoice, broadsheet or anything which indicates that AliExpress has shipped the merchandise.
Read about 10 Essential Steps to Master Reverse Dropshipping
Conclusion
This is the end of this Temu dropshipping guide and as you can see and understand there is no better place to get a supplier for your dropshipping business than on Temu. It has a wide area of our products, great prices, and a great policy of refunds and returns. That is a major con though it is not a blind dropshipping supplier and the brand cannot be customized now that the customers are likely to go to Temu directly for their next purchase. Still, using a 3PL provider, you can fight this. Therefore, what are you waiting for?
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