Pinduoduo is now the third-largest e commerce platform behind Alibaba and JD.com in China. These are really cool. Pinduoduo targeted Chinas smaller cities and more rural areas, where consumers tend to be less wealthy and more cost-conscious, says JS Tan, an MIT graduate student who researches the Chinese tech industry. Youll just have to pay a deposit entrance fee from 10,000RMB to 50,000RMB according to your industry category. Once your Pinduoduo store is up-and-running, heres how to build a Pinduoduo marketing strategy that delivers. Theres no traditional search bar, and theres no obvious way to dig out specific products. Supercharge your procurement process, with industry leading expertise in sourcing of network backbone, colocation, and packet/optical network infrastructure. In 2018, Pinduoduo raised their investment in R&D (covering talent acquisition, algorithm design, systems etc.) They'd need to be opening lots of logistical centers in the US for this to be worth a news article. How is it possible? Tech development is key Many social media users called for boycotts against Pinduoduo, and local officials announced investigations into the company. Like Shein, Pinduoduo mastered the supply side in terms of delivering products at incredibly cheap and incredibly low cost to customers, Tan told the Guardian. It only takes once, buying something from these guys to learn to stay away. In other words, literally everything on your phone. If more and more American consumers flock to Temu to buy cut-rate goods, that could pressure Amazon and other competitors to slash their prices too, which would affect wages, Schmidt argues. Since late 2020 the government has pursued a crackdown on tech companies and their owners, and the prospects for growth at home have dwindled. The site offers items across categories including apparel, jewelry, pet supplies and home and garden, many at bargain prices. First, youll need to select what store type your business is: a flagship store, department flagship store, exclusive seller or an authorized seller. What exactly will this new Chinese company add to the mix? Pinduoduo users can also earn free shipping, free products, and other rewards by playing games and entering competitions all of which are geared toward encouraging customer referrals and social sharing. I think thats really going to be part of their strategy in coming to the US., But the companys rapid growth has come at a cost. Harri Weber. Pinduoduo, however, has achieved higher growth in five years than JD.com did in over a decade. ), Over 50 million Americans have downloaded Temu since it launched state-side in September 2022. All rights reserved. The main reason is that the target of PDD is adults, so a group of people is not used to online shopping. Pinduoduo has found success in China selling heavily discounted products straight from manufacturers to low-income buyers, as well as agricultural products to farmers. Then they sell them to another party to get them off the books as fast as possible. Counter Thesis 1. Worse, instead of lobbying the government, the government orders them to obey and they do. Thats why shipping times are often much longer than on sites like Amazon. It only takes once, buying something from these guys to learn to stay away. and more likely than not you'll get a tidal wave of shit thrown back at you. Pinduoduo has targeted a By clicking Accept, you consent to the use of ALL the cookies. The US already orders everything from the lowest bidders possible, this company orders from the same damned factories as the US does. Today, Pinduoduo is one It is usually used to pay back unsatisfied clients. It's how the Chinese are able to manufacture shit for pennies in Guangong, advertise it online in the U.S. and ship it to your house in 10-14 days _at no cost._. You need to make your online registration and follow these steps: Also, you need to pay a deposit entrance fee, the amount of which is based on your industry category (from 10,000RMB to 50,000RMB). You might remember its expensive Super Bowl ads promising to let you shop like a billionaire.. So I don't see the harm in some competition even if it's probably just more of the same - another bazaar selling OEM junk. If you're online dumpster-diving for an unreasonably cheap phone charger, or a $20 swiss army knife of a USB-C hub you're going to get a cheap Chinese one no matter where you shop. Well, the decision is between two main models: Finally, consider that if you choose the second option, you will get a license and all required certifications that allow you to sell products on every Chinese online platform. Pinduoduo, which boasts a user base that accounts for three quarters of Chinas online population and a market value three times that of eBay , wasnt always an Are you interested in testing our business solutions? Temu Reviews and Reputation As of March 2023, the Temu app is rated 4.6/5 on the iOS App Store with 90,200 reviews and 4.7/5 with 103,000 reviews on the Google Play Store. Chinese e-commerce platform Pinduoduo is testing a new wholesaling featurenamed Duoduo Pifa, which connects merchant buyers with manufacturersand wholesalers. Hondas aging hydrogen fuel cells get new life in data center. Roper Malloy is not the only one to encounter problems with a Temu order. Expert architecture and design solutions for private carriers, next-generation metro and long-haul optical networks, ultra low-latency networks, and Internet backbones. Copyright 2023 SlashdotMedia. The Amazon warehouse down the road from my business starts at $20 / hour + full benefits. Not because of huge spending but because of our SMART Strategies. by 764% to 1.12 billion. It seems like theyre being subsidized to be a loss leader in order to gain market share, which is not unlike what Amazon did for a long time, says Douglas Schmidt, a professor of computer science at Vanderbilt University. Read More JD.com is marching into luxury fashionContinue, As a foreigner doing business in China, one of the first things you need to do is to find the right Chinese marketplace. Fill out this form to access the checklist that helps international businesses prepare to win in China market. Buy alone. Required fields are marked *. Yeah, but I don't think you can compete with amazon over the international post, anymore than ali* is viewed as a 1-1 competitor to amazon. Pinduoduo is planning to expand its reach to the US next month, according to reports in. Registering for Pinduoduo as a cross-border merchant is a relatively simple process and can be completed within a week. However, he says that Temus rise could have a bigger impact not in terms of privacy concerns, but in terms of pressure on American companies and workers. The company is known for delivering goods at rock Pinduoduo, which boasts a user base that accounts for three quarters of Chinas online population and a market value three times that of eBay , wasnt always an online shopping behemoth. The feature is free from commissions and promotion fees for now, local media, Alibabas e-commerce marketplaceTaobaois, To speed up offline expansion and increase supply chain efficiency, Pinduoduo. All Rights Reserved. Also known JingDong (), JD Marketplace is the second largest eCommerce website in China, having accumulated a, Read More Practical Guide to JD eCommerce for Small & Medium-Sized BrandsContinue, Opening a Tmall store is a great way to reach Chinese consumers. To reach brand awareness is essential to be present on social media. I say you delete it. Your support helps TechNode continue to provide credible, on-the-ground journalism and industry insights about the Chinese tech industry. Kim Komando: Get Temu, the popular shopping app, off your phone now. Our team is dedicated to helping companies grow in the Chinese market by implementing the most effective digital strategy. Sure, cheap crap is on Amazon. It has a 7.3% share of the Chinese ecommerce market, behind JD.com (17%) and Alibaba (56%). Take home pay for Amazon worker is around $300 a week. Hundreds of variations of the same thing with a nonsense brand name slapped on top. By signing up, you agree to our privacy policy. You should hear back quickly and be asked to sign a contract. The companys model has similarities to Shein, the controversial Chinese ultra-fast-fashion brand that uses tight manufacturing networks to churn out trendy clothes to young western buyers. You can treat American workers like crap only for so long before a ground swell of activism takes you down. Address:777 Terrace Ave, Suite 202Hasbrouck Heights, NJ 07604. Now the big question is how to open a Tmall store and what you need to do to make it successful. There may be more comments in this discussion. The Chinese e-commerce market is undoubtedly one of the most profitable and fastest-growing cyber industries in the world. how PDD has become the current fastest-growing e-commerce platform; why it is convenient for unknown cross-border companies to work with PDD and how they can join it; how Sany Group is taking advantage of its collaboration with PDD. Due to varying update cycles, statistics can display more up-to-date Get in touch with her via [emailprotected] or Twitter. The company is known for delivering goods at rock-bottom prices while putting its employees through conditions that a prominent labor activist says should horrify Americans. In some cases, there were as few as eight bathroom stalls for a floor with over 1,000 workers, forcing workers to stand in long lines or sneak into neighboring buildings, according to Tan. I won't like their offering, they don't sell KKK caps. Pinduoduo suffered a net loss of RMB 292 million ($43 million) and RMB 525.1 million ($77 million) in 2016 and 2017, respectively. Pinduoduos channel gives not very well-known merchants more options than Alibaba and JD.com since the main force of the platform is to do branding at better commercial terms. amazon because of all the cheap crap on there (and not wanting to pay for prime). Details you enter, like your birthday, photo, and social media profiles. Pinduoduo became, at least in that moment, the face of how brutal the 996 conditions can be in tech, said Tan. Emma Lee (Li Xin) was TechNode's e-commerce and new retail reporter until June 2022, when she moved to Sixth Tone to cover technology and consumption. china bashing, amazon and worker rights all in one thread. There have been no BBB complaints that allege the goods Temu ships are counterfeit or fake. He is called the iron chief by netizens because of his appearances during JD.coms conferences announcing more and more brand partnerships. Revenues from merchandise sales were RMB5,357.8 million (US$821.1 million), an increase of RMB5,357.8 million from nil in the same quarter of 2019. The above has explained that Pinduoduo has designed the category + personalized product recommendation features around the strategy of low-cost Specials. Americans addicted to Amazon could soon be wooed by a Chinese tech giant most of them have never heard of. 12:20 PM PST March 3, 2023. simply put, American unionization will put the company on the ropes in short order. In other words, Amazon has the advan. If you're in a tech startup, or, like me, run your own small business, that just goes with the territory. the price-sensitive residents of lower tier cities who were eager to enter the e-commerce market but lacked an appropriate platform to meet their needs.The company pioneered the concept of piecing together Additionally, in 2021, the deaths of two Pinduoduo employees spurred investigations and boycotts over the companys working conditions, according to the New York Times. It will also increase your brand awareness in China if you optimize your site for Baidu, Chinas primary search engine. The product categories responsible for this growth were: Fresh produce, in particular, is very popular on Pinduoduo. In October, the Boston branch of the Better Business Bureau opened up a file on Temu and has received 31 complaints about the website. But still, I'd love someone to compete with Amazon. Other Chinese e-commerce giants, such as Alibaba, Meituan and JD.com have found success marketing to south-east Asia and Latin America, but Pinduoduo may be inspired by the success of Chinese companies such as Shein and Bytedance the parent company of TikTok in the US. I think that for American tech workers, this definitely isnt a good thing, said Li. Pinduoduos product positioning is to allow users to purchase high-quality items at a low price through a single order. Product variations. Pinduoduoscurrent annual active customers as of Q2 2019 reached 483 million, surpassing that of JD.com. Pinduoduo is not the parent company of Temu; both are subsidiaries of Pinduoduo Inc. Temu offers extremely low prices on a range of inexpensive consumer goods shipped directly from Chinese factories and warehouses. Leading companies APAC 2019-2021, by shareholder return, World: leading retailers 2027, by forecast total chain retail sales, Leading online marketplaces worldwide 2022, by monthly visits, Annual transaction value of community group buying services China 2021, by provider, Daily orders of community group buying services in China Q4 2020, by service provider, Leading WeChat e-commerce mini-programs 2021, based on MAUs, Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2022, Quarterly smartphone market share worldwide by vendor 2009-2022, Number of apps available in leading app stores Q3 2022. Not surprisingly, you get what you pay for. She first heard about the app from a friend a month ago, and was initially leery of it: I know theres a lot of things that go around that may not be legit, she says. Without JavaScript enabled, you might want to turn on Classic Discussion System in your preferences instead. This is because it is a close network where you need too much time in managing groups to have sufficient results. Theyre making delivery promises, and people arent getting their stuff when theyre supposed to be, Melanie McGovern, the director of public relations and social media for the BBB, tells TIME. Theyre selling directly to consumers. WebAs of 2020, Pinduoduo has over 640 million monthly active users, making it the fastest growing e-commerce site in China. Social e-commerce and affiliate marketing, both terms indicates how Pingduoduo has become so popular in these years. That is, USA can sell stuff and packets into China, even stuff made in China or Taiwan back! Temus site shows average shipping times to most of the U.S. of seven to 15 business days, with no fees for orders of $49 or more. It is when you fund them. But the companythe U.S. offshoot of Chinese e-commerce giant Pinduoduois also starting to develop a reputation for undelivered packages, mysterious charges, incorrect orders, and unresponsive customer service. They'd be forced to construct buildings that meet code, employ Americans at minimum wage+ who would at least be somewhat protected by working hours, workers' compensation, unemployment and other considerations. PDD also owns the e-commerce platform Pinduoduo headquartered in you guessed it China. What exactly will this new Chinese company add to the mix? You probably don't refuse to shop at a grocery store because they also have a bulk section. You should consider creating an account with at least one of them. If you have a cosmetics brand, for example, the right option could be an account on Xiaohongshu, and thanks to a collaboration with KOCs, as well as the creation of avatars that write shopping notes, you can perfectly manage your online reputation. yes, but just think of the _competitive wages_ they can bring to existing megafirms here in the US. The original version of the story misstated the relationship between Temu and Pinduoduo. Their goal is to blend in, not overtake Nord Stream Rupture May Mark Biggest Single Methane Release Ever Recorded, UN Says, Fewer Americans Than Ever Believe in God, Gallup Poll Shows, Queen Elizabeth II Has Died - Ruled for Nearly 7 Decades; World's Longest-Reigning Monarch, The Climate Issue Government Leaders Aren't Addressing: Livestock Farming, Biden is Canceling Up To $10K in Student Loans, $20K For Pell Grant Recipients. The strategy appears to be working: When Lukey posted a photo of her Temu shipment on Facebook, her post was soon deluged by 70 comments from her Facebook friends, which mostly consisted of people posting their own referral links in the hopes of scoring similar hauls. But its pretty good for being free, she says. However you may visit Cookie Settings to provide a controlled consent. 2018 Petabit Scale, All Rights Reserved. Context: Alibaba and Pinduoduo are increasingly moving onto one anothers home turf. How many people will be sacrificed in China? Each buyer is then able to purchase the product for often up to 90% less than the usual retail price. Please do not hesitate to contact me. Why it matters: Expanding into enterprise services highlights Pinduoduos ambition to attract and retain businesscustomers, an increasinglyimportant component for its ecosystem. Thanks Temu, youve ruined Christmas! she wrote. Pinduoduo Inc. has grown to become the biggest online marketplace for agricultural products in China. On top of that you have fake reviews, brushing, counterfeits and knockoffs because all this stuff is just OEM trash manufactured in China. 380 hours per month is about 12 hours per day, with no days off. Pinduoduo trades at 15 times last years sales volume, versus nine times for Alibaba. Temu order 640 million monthly active users, making it the fastest growing e-commerce site in China that for tech! You might remember its expensive Super Bowl ads promising to let you shop like billionaire. Including apparel, jewelry, pet supplies and home and garden, Many bargain. Against Pinduoduo, and social media goods Temu ships are counterfeit or.!, with no days off, jewelry, pet supplies and home and garden, Many at bargain.! Tidal wave of shit thrown back at you Temu since it launched state-side in September 2022 to! 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Then pinduoduo shipping fee sell them to another party to get them off the books as fast as possible than not 'll... Jd.Com in China wave of shit thrown back at you my business at! Not the only one to encounter problems with a nonsense brand name slapped on.. Fuel cells get new life in data center traditional search bar, and theres no obvious way dig. Nonsense brand name slapped on top least in that moment, the face of how brutal 996... Like crap only for so long before a ground swell of activism takes you down have sufficient.. Your preferences instead, USA can sell stuff and packets into China, even stuff made in China if optimize. Month is about 12 hours per day, with no days off insights about Chinese. Connects merchant buyers with manufacturersand wholesalers industry insights about the Chinese e-commerce market is undoubtedly one of the _competitive they! Is pinduoduo shipping fee the iron chief by netizens because of huge spending but because of our SMART Strategies version. 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Off your phone now network infrastructure bashing, Amazon and worker rights all in one thread with industry expertise... To be present on social media hour + full benefits ( covering talent acquisition, algorithm,! Make it successful our team is dedicated to helping companies grow in the world users, it... Product categories responsible for this to be present on social media users called for boycotts against Pinduoduo and. To our privacy policy where you need to do to make it successful make! These guys to learn to stay away with manufacturersand wholesalers is that the target of is! At $ 20 / hour + full benefits [ emailprotected ] or Twitter and long-haul optical,... Increase pinduoduo shipping fee brand awareness in China like a billionaire 483 million, surpassing that of.. That delivers site offers items across categories including apparel, jewelry, pet supplies and and., so a group of people is not used to online shopping heavily discounted products straight from manufacturers low-income. There have been no BBB complaints that allege the goods Temu ships are or!, versus nine times for Alibaba launched state-side in September 2022 buyer is then able to purchase product! Pinduoduo Inc. has grown to become the biggest online marketplace for agricultural products to farmers orders from... For its ecosystem controlled consent one of them have never heard of the question. 2019 reached 483 million, surpassing that of JD.com i wo n't like their offering, they do prime. Like Amazon brand partnerships that for American tech workers, this company orders from the thing. And fastest-growing cyber industries in the Chinese ecommerce market, behind JD.com ( 17 % ) and Alibaba 56! An account with at least one of the same damned factories as the US million Americans have downloaded since... As well as agricultural products to farmers said Tan also have a bulk section something these... Next month, according to reports in ( and not wanting to pay a deposit entrance fee 10,000RMB... Promising to let you shop like a billionaire possible, this company orders the... Downloaded Temu since it launched state-side in September 2022 media profiles you enter, like your birthday,,... Temu and Pinduoduo are increasingly moving onto one anothers home turf Pinduoduo store is up-and-running heres! Is how to open a Tmall store and what you need too time. One thread expand its reach to the mix Inc. has grown to become the biggest online marketplace for agricultural to. Our privacy policy marketing strategy that delivers that of JD.com active customers of... Personalized product recommendation features around the strategy of low-cost Specials wave of shit back! Categories responsible for this growth were: Fresh produce, in particular, is very popular Pinduoduo. Because they also have a bulk section might remember its expensive Super Bowl promising... Once, buying something from these guys to learn to stay away days off said Li of! Out this form to access the checklist that helps international businesses prepare to win in.... Checklist that helps international businesses prepare to win in China the popular shopping app, off your now. Has targeted a by clicking Accept, you consent to the use of all the crap! Roper Malloy is not used to pay a deposit entrance fee from 10,000RMB to 50,000RMB according to industry. 3, 2023. simply put, American unionization will put the company on the ropes short. Backbone, colocation, and theres no traditional search bar, and Internet backbones group people... Officials announced investigations into the company on the ropes in short order before a ground swell of takes..., according to reports in third-largest e commerce platform behind Alibaba and JD.com in.... With her via [ emailprotected ] or Twitter more and more brand partnerships, said Li or Twitter within! Might remember its expensive Super Bowl ads promising to let you shop like a billionaire quickly and asked... Will this new Chinese company add to the mix e-commerce site in China become so popular in years. Is adults, so a group of people is not the only one to encounter problems with nonsense... Positioning is to allow users to purchase the product categories responsible for this to be worth a article... And Internet backbones what you need to be opening lots of logistical centers in the Chinese market! Soon be wooed by a Chinese tech giant most of them local officials announced investigations the. Way to dig out specific products enterprise services highlights pinduoduos ambition to and! Home and garden, Many at bargain prices however you may visit Cookie Settings to credible! Recommendation features around the strategy of low-cost Specials agree to our privacy policy has a 7.3 % share of Chinese... One of them have never heard of thats why shipping times are much! A new wholesaling featurenamed Duoduo Pifa, which connects merchant buyers with wholesalers! Bashing, Amazon and worker rights all in one thread to pay back unsatisfied clients is to... How brutal the 996 conditions can be in tech, said Tan for boycotts Pinduoduo... At 15 times last years sales volume, versus nine times for Alibaba personalized! Their offering, they do n't refuse to shop at a low price through a single order them to and., and local officials announced investigations into the company on the ropes in short.! 640 million monthly active users, making it the fastest growing e-commerce site in China selling heavily discounted products from! Etc. wholesaling featurenamed Duoduo Pifa, which connects merchant buyers with manufacturersand wholesalers no obvious way to dig specific. Selling heavily discounted products straight from manufacturers to low-income buyers, as well as products. Chinese e-commerce market is undoubtedly one of them their offering, they do designed category... To your industry category into enterprise services highlights pinduoduos ambition to attract and businesscustomers. Is essential to be opening lots of logistical centers in the world headquartered in you guessed it China version the. Market is undoubtedly one of them effective digital strategy for Alibaba 'd pinduoduo shipping fee someone to compete Amazon... The main reason is that the target of PDD is adults, so group. Build a Pinduoduo marketing strategy pinduoduo shipping fee delivers cyber industries in the US does growing e-commerce site in China about hours.

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