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“Temu entering the U.S. only a few months ago is perhaps the most aggressive marketing approach yet and it shows how much demand is still out there for these types of offerings,” said Juozas Kaziukenas, founder and chief executive of Marketplace Pulse, which analyzes e-commerce marketplaces. He noted that many retailers are hoping to replicate the success of Shein, which has been raking in downloads and consistently hovers near the top of the most-downloaded list of apps.

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Shein has been building teams in some countries to manage localized initiatives, said Juozas Kaziukėnas CEO of Marketplace Pulse. “In Argentina, that’s onboarding local brands. In the U.S., that’s managing U.S. warehouses and other tasks. In Turkey, that’s managing local manufacturing,” he wrote in an emailed response.

Goldberg said both companies have grown quickly through aggressive investment in digital marketing and social commerce. “And so you’ll see both of them hiring a lot of people around influencer marketing and social commerce,” he added.

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“They seem to be on a path of extremely aggressive consumer acquisition, trying to get as many users as quickly as they can,” said Juozas Kaziukėnas, founder and CEO of Marketplace Pulse. “And the Super Bowl ad seems to be the latest effort — almost like a coming out party — where they elevated their marketing efforts beyond Facebook ads, Instagram ads, beyond user referrals to now trying to reach a wide audience.”

Though expensive, Kaziukėnas sees the Super Bowl ad as a more ephemeral stunt. “This is not going to be a make-it-or-break-it moment for Temu. But, if anything, it shows this sort of willingness and boldness in their marketing to really go from zero to 100 just in a matter of months,” said Kaziukėnas.

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The Super Bowl ad comes after months of steady growth for the platform, which is linked to one of China’s top retail sites. It was the most downloaded shopping app in the country as of October, surpassing the likes of Amazon, Target and Walmart, according to Marketplace Pulse.

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Der Konzern lässt sich für diese Nur-ein-Stopp-Stellung von Anbietern bezahlen; einer Studie von Marketplace Pulse zufolge können diese Gebühren mehr als 50 Prozent des Gesamtpreises ausmachen. Die Analysefirma hat Daten seit 2016 ausgewertet und dabei festgestellt, dass der Prozentsatz der Gebühren für die knapp zwei Millionen mittelständischer Unternehmen im Jahr 2022 auf durchschnittlich 51,8 angestiegen ist. Im Jahr davor waren es 48 Prozent, 2016 nur 35,2 Prozent. "Für die kleineren Unternehmen wird es immer schwieriger, profitabel zu sein, weil diese Gebühren einen immer größeren Prozentsatz ausmachen", sagt Marketplace-Chef Juozas Kaziukenas.

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The cost of selling on Amazon has continued to increase, according to a new study from Marketplace Pulse.

"Amazon is pocketing more than 50% of sellers' revenue - up from 40% five years ago," the e-commerce analytics firm wrote in a blog post on Monday.

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“Temu and Shein are disrupting the boring U.S. e-commerce market more than anyone else,” said Juozas Kaziukenas, founder of the e-commerce research firm Marketplace Pulse. “Look at the rest of the top 100 apps — they’ve been around for 10-plus years, and what fun have they done?”

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For the first time, Amazon’s average cut of each sale surpassed 50% in 2022, according to a study by Marketplace Pulse, which sampled seller transactions going back to 2016.

“For these small businesses, it’s getting harder and harder to be profitable because they are spending more and more money on Amazon fees,” said Juozas Kaziukenas, Marketplace Pulse’s founder and chief executive officer. “Amazon might be tempted to keep increasing fees because it’s in a tough spot, but you have to reach some kind of equilibrium.”

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Boosted Commerce has raised $380 million in outside funding to date, according to Marketplace Pulse.

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It’s a lot of power for one firm to have. E-commerce analyst Juozas Kaziukėnas, founder of Marketplace Pulse, has highlighted growing concerns in the country about Amazon’s dominance and trajectory, including an editorial in the People’s Daily critical of the company’s e-commerce “chokehold.” (The article is available in translation here.)

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In 2021, Chinese sellers account for a substantial percentage of overall vendors on Amazon. According to the e-commerce research firm Marketplace Pulse, China-based sellers represented 75 percent of new sellers on Amazon in January 2021. In 2021, 38 percent of the top-selling brands on Amazon are based in China.

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Within a year of its official launch, Pakistan became the country with the third-highest number of sellers registered on Amazon, behind only the U.S. and China, according to e-commerce intelligence firm Marketplace Pulse.

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Things looked good for third-party sellers when, also in 2019, research by ecommerce analysts Marketplace Pulse found that “Amazon-owned private-label brands are not nearly as successful as many paint them to be.”

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That said, Amazon can only grow as much as e-commerce spending, as Juozas Kaziukenas, CEO of the e-commerce data intelligence firm Marketplace Pulse, points out.

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This isn’t the first time Amazon merchants have miss-categorized products to fool the algorithms. During the pandemic, some merchants put packs of face masks in the book and video game categories to circumvent Amazon’s product-safety rules regarding the coronavirus, said Juozas Kaziukenas, founder and CEO of Marketplace Pulse, which monitors online sales.

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Amazon’s focus has shifted from “trying to find ways to delight consumers with great recommendations, personalization and discovery to building better advertising technology,” says industry analyst Juozas Kaziukenas of research firm Marketplace Pulse, who has written about how everything on Amazon is becoming an ad.

“Consumers can either ignore ads or assume that the advertised product is good enough,” said Kaziukenas. “Part of the reason why those ads on Amazon and Google work so well is because it’s near impossible for them to perfectly determine the best search results.”

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“The craze has basically evaporated,” said Juozas Kaziukėnas, founder of e-commerce data firm Marketplace Pulse. “Now it’s up to them [aggregators] to figure out how to do the thing they promised to do. It’s a proving ground.”

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Juozas Kaziukėnas, founder and CEO of Marketplace Pulse said the rumored layoffs will probably hasten Amazon’s transformation from a retailer to a marketplace business. “Amazon’s layoffs appear to include retail folks. I assume most of those are Amazon’s first-party retail people, not the marketplace teams… The marketplace is more profitable, takes less people to run and has been growing in sales mix percent consistently over the years — it was 58% of all sold units on Amazon in Q3,” said Kaziukėnas.

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Juozas Kaziukėnas, founder of the e-commerce-intelligence firm Marketplace Pulse, argued it won’t be easy for Temu or other Chinese platforms to lure a large cohort of sellers away from Amazon, even if they’re offering a better deal. Amazon’s marketplace is simply too dominant, particularly in the U.S.

“When a seller makes the decision about where to sell or where not to sell, a lot of that is based on how big the opportunity is,” Kaziukėnas explained.

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“I believe it’s driven almost exclusively by ads,” says Juozas Kaziukėnas, who founded the e-commerce analyst firm Marketplace Pulse, “because I’m seeing relatively no mentions of Temu on social media. That makes me believe that there’s very little organic recognition of the brand yet.”

“This model of relying on ads to drive every transaction does have an expiration date, and that’s what unfortunately caused the demise of Wish,” says Kaziukėnas. At one point, ads will become too expensive and too inefficient to justify the costs.

“You see some small attempts to do these sorts of experiments, but if you zoom out and look at what has actually changed over the last 10 years? Not that much. Amazon looks exactly the same,” says Kaziukėnas. “Perhaps [it] suggests that the West is just a much more established environment, economically and also technologically, so it’s unlikely to see these kinds of massive disruptions as you saw in China.”

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