Black Friday 2023: TikTok Shop and Chinese E-commerce Platforms Face Stiff Competition
Challenges Facing Chinese E-commerce on Black Friday
This year, TikTok Shop and other Chinese e-commerce platforms are grappling with intense competition during Black Friday. Despite an overall surge in consumer spending, sellers report difficulty in achieving profit margins. A clothing factory in Guangzhou noted a significant drop in sales at their Temu store, decreasing by 30% compared to the previous year.
The Dark Side of Discounts
While platforms like Shein offer staggering discounts of up to 90% on various items, many merchants find their profit margins dwindling. A furniture seller on Amazon mentioned that despite a significant increase in sales, advertising costs have inflated by over 50%, resulting in a profitability decline.
- Sales Growth vs. Profitability:
- Temu: 18% yearly increase
- Shein: 16% yearly increase
- Amazon: only 0.5% yearly increase
The Future of E-commerce
With a growing overhead and stronger competition from rivals like Amazon, which has now launched a budget shopping platform called Haul, Chinese vendors find themselves under incredible pressure to adapt rapidly. The ongoing geopolitical issues add further uncertainty to their strategies.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.