A little special post today as I collaborated with Artur Stanczuk, founder of MarketMaze, on a report discussing Amazon vs. Temu. Artur and I have known each other for a little over a year and frequently discuss the evolution of marketplaces and e-commerce. Given our shared views on the future of e-commerce, we decided to work together on a comparison article about two e-commerce titans: Amazon and Temu.

MarketMaze is a twice-weekly newsletter that delivers insights, trends, and stories from the world of e-commerce and marketplaces. It covers major industry players like Amazon, Shopify, and TikTok Shop, as well as tools, marketing, and logistics. If you haven’t subscribed yet, I highly recommend it—MarketMaze reports are a goldmine of industry insights for e-commerce professionals. Artur Stanczuk is also active on LinkedIn and can be found here.

Temu’s meteoric rise is shaking up e‑commerce. In just two short years in the US, it’s snatched 5% of Amazon’s GMV, challenged consumer habits, and built a loyal app following. Meanwhile, shoppers reveal that even big Amazon buyers are tempted by Temu’s aggressive pricing and local shipping. From product clones and pricing quirks to deep discounts across categories, this report breaks down how both giants are rewriting the rules of retail.

This is our third deep dive into Temu – if you missed the first two, catch up here:

P.S. Feel free to use and share any slide of this report!

Disrupting Retail ⚡️

Summary: Temu has emerged as a disruptive force in e-commerce, capturing 5% of Amazon’s GMV in a brisk 2-year run. Shifting consumer behavior is evident from US search trends, where Temu gains traction as Amazon slows. Notably, close competition in app downloads signals a changing guard.

Temu’s Rapid Surge ⏱️

Temu’s surge is a blitz in retail. In just 2 years, it has grabbed 5% of Amazon’s GMV, sending shockwaves through the digital marketplace. The head-to-head US comparison paints a stark picture of rapid market penetration. It’s like watching an indie band outpace a seasoned legend overnight. Every percentage point tells a story of agility and bold strategy that could redefine market leadership.

❝Based on sheer numbers, it looks like Temu is far behind Amazon. However, let’s not forget that the company is relatively new in the US and sees success in a very competitive space. Temu is also moving fast and innovating—we can expect the gap between the two to narrow over the next year.❝

François Maingret

Shifting US Trends 📉

US search data reveal a dramatic pivot in consumer behavior. As Amazon’s momentum dips, Temu’s appeal rockets – Google Trends shows metrics scaled to a peak of 100. This inversion signals a cautious shopper pivot, with digital natives capturing hearts and wallets. It mirrors a blockbuster rivalry where established titans clash with agile newcomers.

App Race Tightens 📲

Mobile metrics underscore a heated contest. Despite trailing, Temu is rapidly closing in on Amazon’s app downloads, per Similarweb’s monthly active user data across iOS and Android. This near-tie in digital engagement hints at a reconfigured playing field where nimble newcomers challenge entrenched incumbents.

❝The very slow decline in Amazon’s active users is interesting. I believe this is due to tougher competition with more serious players than a few years ago, such as Temu and Walmart, but also social commerce.❝

François Maingret

Clash of Giants 🚀

Summary: Temu is shaking up the e‑com game while Amazon leans on its speed. Data shows 76% of shoppers crown Temu as cheaper, yet 81% swear by Amazon’s shipping. Cross-shopping is surging, with heavy buyers diving into Temu deals. New local warehouses slash delivery times, and supply chains are in flux. Both titans are retooling their models to capture diverse customer habits and market dynamics.

Price & Variety Battle 🛍️

A survey of 340 U.S. shoppers from Probolsky Research ’24 reveals a split personality in online buying. Shoppers report that 76% see Temu as budget-friendly, while 81% value Amazon’s lightning-fast delivery. Nearly half find product selections comparable, yet half also back Amazon on returns and customer care. Reviews matter too, with 58% weighing them equally. The data underscores that even in e‑com, price and variety can be polar opposites.

❝I am a little surprised to not see more people acknowledging the variety of Temu’s offerings. However, Amazon’s logistics are still king, and it really shows here. Now, the real question is: which of these aspects do customers value the most when making decisions?❝

François Maingret

Amazon Wins Millennials, Temu Courts Boomers 🎯

Amazon is the e-commerce darling of Millennials, with 47% of its users falling into the 18-34 age range. The 25-34 group alone accounts for nearly 30%, proving Amazon’s dominance among digital-native consumers. Meanwhile, Temu’s audience skews older – a whopping 66% of its traffic comes from users aged 35 and up, making it a playground for Boomers and Gen X. With 28% of Temu’s audience aged 55+, the platform is attracting deal-hunting seniors, while Amazon holds strong among younger buyers.

Cross-Shop Growth Surge 📈

Findings from ConsumerEdge highlight a steady uptick in cross-shopping behavior. Amazon users grew from roughly 1% in March to nearly 3% in August ’23, signaling that budget-savvy consumers are diversifying their carts. Prime members, in particular, show a pronounced willingness to sample Temu’s offerings. This subtle yet significant 3% climb over eight months hints at a broader shift, where even loyal customers aren’t immune to compelling deals and alternative shopping experiences.

❝It looks like customers are shopping across multiple channels more. Maybe the current economy encourages them to shop around more. But let’s not forget that over 80% of US households have Amazon Prime, so any increase in Temu’s GMV in the US will result in an increase in these numbers.❝

François Maingret

Heavy Buyers Turn to Temu 💰

Frequent Amazon customers are increasingly dipping their toes into Temu’s bargain basin. In three months, about 5% of shoppers ventured onto Temu, while 4% tried Shein, with more than 6% of high-transaction buyers exploring these platforms. This trend suggests that heavy online spenders, especially those with over 20 purchases, are open to testing new waters. The pattern reinforces the notion that high-engagement buyers are less brand-loyal and more driven by value, nudging them toward Temu’s deals.

Local Shipping Takes Lead 🚚

An analysis from fmaingret.com unveils a strategic pivot for Temu. For top listings, the majority now ship from domestic warehouses, boasting delivery times as low as seven days. Even as Temu’s pricing remains significantly lower than Amazon’s, the emphasis on local logistics marks a sharp turnaround from its earlier China-bound shipments. The data underscores a robust strategy where local fulfillment not only boosts speed but also enhances the overall shopping experience without compromising cost advantages.

❝Another important reason why Temu is opening local warehouses is the uncertainty around tariffs and the de minimis rule. If the US government removes the exception for parcels under $800, Temu has more reasons to diversify its supply chain.❝

François Maingret

Supply Chain Shake-Up 🤝

Both giants are overhauling their supply chain playbooks. Recent insights reveal that Temu’s U.S. sales from local warehouses surged from 0% to 20%, as noted by The Information, while it onboarded its first 1K U.S. sellers. Meanwhile, Amazon is launching a dedicated section for low-priced, slow-delivery items sourced directly from China—a nod to Temu’s disruptive model. This dual strategy illustrates a dynamic market where rapid adaptation and supply chain innovation redefine competitive boundaries.

❝I do not have a lot of hope in Amazon’s Haul, Amazon’s plan to ship directly from China. The company is barely promoting it, and the offering has not improved significantly over the last few months. I wonder if this is due to the current political environment. Nonetheless, this was clearly a jab at Temu and Shein, even though its future is unclear.❝

François Maingret

China Surpasses 50% on Amazon🚀

In 2024, Chinese sellers surpassed 50% of top Amazon sellers. Amazon officially acknowledged this “significant” shift in its February 2024 10-K filing, though it has been growing for nearly a decade. China-based sellers generate hundreds of billions in global Amazon sales, fueling new experiments like Amazon Haul. Walmart also saw Chinese sellers climb from 20% to 30%. On top of that majority of Amazon products are sourced from China.

❝The COVID pandemic sped up the number of Chinese suppliers selling on Amazon.com. This contributed to lower prices but also more competition for US sellers and arguably a worse shopping experience for customers. Many sellers complained about Amazon favoring Chinese sellers and believe they are not as strict with TOS violations, which makes this topic controversial.❝

François Maingret

Offer Showdown 🔥

Summary: A deep-dive into Temu versus Amazon reveals stark contrasts. Data from early 2025 shows that 1 in 10 Temu items mirrors an Amazon SKU exactly, while identical products on Temu carry a 7% premium. Moreover, 77% of Amazon’s offerings have a close counterpart on Temu. Yet, pricing splits emerge. Amazon dominates automotive, whereas Temu shines in beauty and home

Cloning on a Massive Scale 🔍

According to a recent Omnisend data from 1/12/24–1/31/25, one in every 10 items on Temu is an exact clone of an Amazon SKU. The replication peaks in office supplies, patio, lawn garden, and arts & crafts, reaching match rates between 15–20%. Notably, categories such as baby items, cell phones, and cameras show zero duplication. This deliberate mimicry raises serious questions about authenticity and consumer trust in today’s cutthroat retail market.

❝Nothing surprising here, as many Chinese suppliers are selling directly to consumers across multiple channels. However, this makes it very confusing for customers. There is also a strong overlap between Etsy and Temu, which I believe could damage Etsy’s reputation.❝

François Maingret

Price Premiums in Focus 💸

Omnisend data indicates that buying identical items on Temu costs roughly 7% more, about $3 extra on average, than on Amazon. Although this conclusion stems from a limited sample of 40 products, the trend is hard to ignore. High-ticket segments like Health & Beauty, Automotive, and Computing can see premiums soaring to over $50. These price differentials reveal that Temu’s competitive edge is nuanced and varies significantly by category.

❝This one is very interesting—I really thought Temu’s prices would be lower. I wonder what kind of data sellers have that influenced their pricing strategy across both channels. I believe everything boils down to the cost of logistics.❝

François Maingret

Extensive Product Matching 🔍

77% of products listed on Amazon have a matching version on Temu, though these counterparts aren’t exact replicas. Instead, they offer similar features without brand precision. Categories such as cameras, beauty, and Home & DIY boast matching rates exceeding 90%, while segments like baby products linger around 60% and grocery 30%. This extensive overlap positions Temu as a viable alternative, enticing bargain-hunters to consider a switch.

❝Amazon wanted to be the everything store, but it is clear that Temu isn’t far behind. However, I don’t see Temu being successful in some categories that require stronger customer trust, such as car parts, supplements, or food.❝

François Maingret

Divergent Pricing Strategies 🔄

A closer look at category-specific pricing reveals a split approach. In automotive, Amazon offers items at prices 12% lower than Temu. Temu delivers average savings of about $13—up to 40% less. Most savings can be found in Beaty & personal care as well as in Health & Household category. Toys & Games are among weakest bargains… still Temu’s pricing is around 18% more attractive than Amazon’s. These divergent strategies force consumers to re-evaluate brand loyalty, balancing the lure of savings against the assurance of trusted names.

❝In my opinion, these numbers show where name brands on Amazon matter most. Many customers have their favorite skincare brands or only trust one specific brand of electronics with a strong reputation for quality. On the other hand, customers care less about things like phone cases or office products and buy the cheapest product on either marketplace.❝

François Maingret

Discount Wars🔥

Summary: Temu and Amazon are duking it out in discount territory. Data reveals Temu not only lists 20% more discounted items but also slashes deeper markdowns across varied categories. 65% of Temu listings are discounted versus Amazon’s 47%. This head-to-head pricing battle is reshaping consumer expectations with targeted, jaw-dropping savings.

❝Very interesting data, which makes sense given Temu’s gamification and “FOMO” strategy. Their demographic skews older, with more boomers who may be more sensitive to discounts and deals.❝

François Maingret

Temu’s Broader Bargains 🔥

Temu’s aggressive pricing has turned heads. A comprehensive Omnisend study spanning Jan ’24 to Jan ’25 shows 65% of Temu’s offerings are marked down versus Amazon’s 47%. In niches like Baby, Automotive, and Arts, over 90% of items get a price cut. The numbers underscore a relentless drive to mimic clearance frenzy dynamics—constant savings that compel buyers. This bold strategy disrupts conventional discount models and redefines value perception.

Category Clash in Discounts 🛍️

Recent sector analysis reveals a tactical split in discount strategies. Both giants score above 50% discounted items in Appliances, Automotive, Computers, DIY, and Kitchen & Home. Yet, Temu dominates in Baby, Health, Electronics, and Toys, while Amazon excels in Office supplies, Apparel, and Outdoor gear. Notably, neither dives into Grocery or Pet Supplies. This strategic focus hints at calculated moves to capture higher margins and cater to distinct consumer segments.

Deeper Discounts Unleashed 🔥

Discount review highlights Temu’s deep discount play. Some products see markdowns as steep as 98% on Temu compared to Amazon’s 67% peak. On average, Temu dishes out a 43% discount, dwarfing Amazon’s modest 18%. Temu discount ranges from 20% to 60%, while Amazon spreads around 15–25%.

Varied Discount Spectrum 📊

Both Amazon and Temu hit above-average markdowns in Office, Musical, Beauty, Electronics, Automotive, and Sports, yet diverge in Home & Kitchen, Baby, and Tools. Amazon offers above average discounts (while Temu below average) in Camera, Toys, Clothing while Pet supplies, Appliances, Computers are Temu domain. This nuanced spread underscores tailored pricing tactics – each brand fine-tunes offers to specific consumer needs, reflecting a strategic segmentation that redefines competitive retail landscapes.

❝We’re witnessing two retail titans reshaping e-commerce. One banks on low prices and playful shopping, the other on speed and brand loyalty. Whether you’re bargain-hunting or chasing premium perks, the choice may come down to how much waiting (or gambling) you can handle for that next purchase.❝

For questions, suggestions or feedback, write email to [email protected]

Best,
MarketMaze team