Temu Outpaces Amazon in Active Users
The Chinese e-commerce platform Temu has been breaking records over the past two years. Recent reports now reveal that Temu has surpassed Amazon in monthly active users (MAUs) globally, marking a major milestone. This achievement is even more remarkable considering Temu’s average spending per customer is significantly lower, and its logistics network is still in the early stages compared to Amazon’s well-established global infrastructure.
According to analysts at Bernstein, Temu’s gross merchandise value (GMV) for 2024 is estimated to exceed $50 billion, with projections of $70–80 billion for 2025. In Europe alone, Temu recorded 97.3 million monthly active users, including 16.3 million in Germany, between April and September 2024—figures that have caught the attention of even the most dominant U.S. platforms.
How Fast Will Temu Grow?
One of the critical questions is whether Temu can maintain its rapid growth while potentially scaling back its aggressive advertising spending. Temu has historically poured massive resources into user acquisition. However, as its customer base grows, the focus may shift toward increasing recurring revenue and fostering customer loyalty.
For established platforms like Amazon and eBay, as well as dollar-store chains in the U.S. and Europe, Temu poses a serious threat. This is especially true for categories like household goods, electronics, and accessories, where brand loyalty is less critical.
Competition Between Temu and U.S. Platforms
Currently, Temu and U.S.-based platforms like Amazon distinguish themselves through different strengths—Temu leverages competitive pricing, while Amazon prioritizes superior customer service and fast delivery. However, as Temu continues to build regional logistics networks, these differences may erode. Temu is also expected to increase its share of non-Asian sellers, with initial efforts already visible in the U.S. market.
For sellers, the biggest contrast lies in pricing strategies. On Temu, prices are set by the platform based on input from sellers, which differs from Amazon and eBay’s seller-determined pricing model. While this approach might deter many European and American sellers, Temu’s lower commission fees remain an attractive feature. However, experts anticipate that Temu will gradually adjust its pricing and commission structures, potentially reducing its appeal to sellers but improving the platform’s profit margins.