📊 Q2 Temu Performance
Gross Merchandise Value (GMV) reached $11-12B.
Margins on GMV slightly improved quarter on quarter.
Estimated full-year GMV for 2024 is $54B.
"The idea that Temu is nothing more than an online dollar store is false," said Brittain Ladd.
🚚 Semi-Consignment Model
Exceeds 25% of US GMV by June, contributing to over a third of global GMV in Q2.
Enables entry into heavier, higher AOV categories like appliances and furniture.
Allows 3-5 day fulfillment, reducing long-haul shipping costs.
Temu can remain cheaper than Amazon even with 20-25% tariffs
💰 Profitability
Temu is now profitable in the US, with non-GAAP operating profits of $90M in Q1 and $150M in Q2.
Rest of the world still loss-making but expected to follow the US trend within 6-12 months.
Forecasts $54B of full-year GMV this year, with marginal annual profit.
📉 Comparisons with Amazon
Report suggests direct comparison with Amazon may misrepresent the market opportunity.
Total retail market in the US is over $7T, with Europe and the UK adding another $3T.
90% of this market is not Amazon GMV and involves various offline retailers.
"90% of the market involves various offline retailers sourcing from similar Chinese suppliers," Ladd added.
Can Temu’s semi-consignment model reshape ecommerce?
