Amazon vs. Temu: How the E-Commerce War is Getting Dirty
Anker's Temu Pullback: The Escalating Amazon-Temu Rivalry
Amazon and Temu's intensifying rivalry is reshaping China's cross-border e-commerce market, with sellers caught in the middle.
Before the holiday season, Anker's two official Temu U.S. stores suddenly suspended all operations, displaying a "temporarily closed" status. According to The Information, Amazon allegedly issued warnings to its top 20 brands operating on both platforms, raising concerns about potential exclusivity demands.
Amazon denied the allegations, asserting that it does not require sellers to choose between platforms. By December 28, Anker's Temu U.S. stores resumed operations, albeit with a limited selection of products. The incident has drawn significant attention and may impact how major Chinese sellers perceive Temu as a rival to Amazon.
Anker Pulls Out of Temu — Strategic or Forced?
Anker, a major Amazon seller, made its debut on Temu in June 2024, launching two U.S. stores: "ANKER Certified Refurbished Official Shop" for refurbished goods and "ANKER Official Shop" for new items.
These stores followed a semi-managed model, with Anker handling logistics while Temu controlled pricing. On Amazon, by contrast, Anker sets its own prices, which are generally higher—an Anker power bank, for instance, sold for $40 on Amazon in October 2024 but only $25 on Temu.
In December 2024, Anker's products were unexpectedly removed from its Temu U.S. stores, though its Temu Germany store, ANKER EU, remained operational with 19 prominently ranked items. Reports surfaced that Amazon was pressuring Chinese sellers to "choose one platform," sparking debates over exclusivity demands.
Opinions on Anker's withdrawal are mixed. Some attribute it to Amazon's influence, while others see it as a strategic move to protect brand value. Another theory suggests Anker was merely testing Temu's platform and pricing strategies.
The incident drew attention, prompting Amazon to clarify on December 25 that sellers are free to determine their sales and pricing strategies across platforms. By December 28, Anker's Temu U.S. stores had partially reopened, with limited products available.
Meanwhile, rival Ugreen is rumored to be considering a departure from Temu. Although its Temu U.S. store remains open, the number of its listed products has dropped to just three.
Temu Gains Ground, but Amazon Holds the Power
Amazon and Temu's competition has hit a critical point as the two platforms vie for dominance in the e-commerce space.
In November 2024, Amazon introduced "Haul," a section for affordable products priced under $20, aiming to counter competitors like Temu, Shein, and TikTok. Initially limited to 300 sellers, Haul is expected to expand and eventually become available to all sellers.
Temu, on the other hand, has aggressively pursued Amazon's top Chinese sellers based in Shenzhen, relocating its recruitment team there in 2024. Sellers like Anker, Sailvan Times, and Loctek have joined Temu, with some reporting strong revenue growth—Sailvan Times earned RMB 60.63 million (USD 8.31 million) in the first half of 2024, while Huakai Yibai made RMB 91.58 million (USD 12.55 million) in the third quarter.
In a bold move, Temu recruiters distributed promotional materials outside Amazon's Asia-Pacific Innovation Center launch event in November 2024.
Meanwhile, Amazon's retaliation is becoming increasingly aggressive.
A few Chinese top are reportedly exiting Temu, with some sellers claiming their product links on Amazon have disappeared. According to The Information, Amazon has been accused of using price-scraping tools to monitor competitors and divert traffic from products priced lower on Temu, increasing pressure on sellers.
The accusations come as Amazon faces ongoing scrutiny for its pricing practices, which have previously been the subject of antitrust probes. In China, the "Either-Or" policy remains a contentious issue. On December 29, 2023, a court ruled that Alibaba had abused its market dominance by forcing exclusivity on sellers, ordering it to pay JD.com RMB 1 billion (USD 137 million) in compensation.
Amazon swiftly denied any "Either-Or" practice and asserted that sellers are free to set pricing and sales strategies across platforms.
"The company emphasizes its support for sellers with solutions like Multi-Channel Fulfillment (MCF) to help them succeed on any platform."
Still, even without formal "choose one platform" policies, Amazon is expected to exert influence on Chinese sellers to maintain its dominance. While Chinese sellers may drop Temu, abandoning Amazon is out of the question—that's Temu's Achilles' heel.