Temu Is Killing Amazon FBA Sellers - WATCH BEFORE IT’S TOO LATE

breaking news timu is killing Amazon sort of in just two years Teemu has become a major rival to Amazon Amazon customers have started flocking to Teemu since they started in September of 2022 and it's become the most downloaded Ecommerce app leaving Amazon in the dust that's right in less than one year teu has over 130 million downloads so that means that if you are an Amazon Seller you may be losing some of your customers to teu every single day and if you don't know timu is a shopping app where you can buy products at dirt cheap prices and customers looking to save money love it especially when you compare Teemu prices to Amazon for instance this knife block on Amazon is $166 but this exact same product on the teu app is only $18 so if you're an Amazon Seller or you're thinking about selling on Amazon you need to pay attention and we're going to talk about how did Teemu get so big so fast and where does that leave you and me as Amazon sellers and the question is is it even possible to build a passive income business with Amazon FBA anymore or is this way of selling online dead for 30 years Amazon has been the goto e-commerce platform and 2023 Amazon hit over 160 million Prime customers and that sounds amazing but in just two years teu already has 10 104 million active users on its website and Teemu is not showing any signs of slowing down in 2024 teu is projected to do over $60 billion in sales and its customer base is growing every single day now keep in mind last year Amazon did over $600 billion do in sales so timu still has a lot of room to catch up but the question is can Amazon survive this t-u apocalypse and before I go any further make sure to smash the like button because I'm going to go over all the hidden details about Teemu all the different pitfalls you need to know we're also going to talk about the pros and the cons of selling on Teemu versus selling on Amazon FBA and ultimately we're going to answer the question has teu killed Amazon has teu killed this opportunity that is Amazon FBA and the number of customers leaving Amazon for Teemu could ruin this passive income Amazon FBA business model but I am going to share later in this video some secrets that you can use to keep making money with Amazon FBA because I'll be honest with you if you are selling certain products on Amazon that's dead Teemu has killed that and we're going to be talking about what products you can continue to sell on Amazon to make money and which products are now dead because Teemu has removed that opportunity timu completely disrupted Amazon's business model because what they do is they ship from their lowcost manufacturing Partners in China directly to the consumer in the United States so there's no middleman now one of the big downsides with teu if you buy something off teu it's going to take a few weeks for it to arrive from China to your door on the other hand if you buy things from Amazon it can arrive in as little as 2 days but the truth is most customers don't really care especially when the choice is between buying let's say these canisters from Amazon for $43.95 vers this same product is being sold on Teemu for only $104 8 so to save $30 a lot of people are willing to wait a few extra weeks and that is teemu's massive Competitive Edge they're simply selling products cheaper than anywhere else is but the question you might be wondering is how do they build their business in such a short amount of time sure on their website Teemu says that they launched in Boston Massachusetts it sounds like it's a nice American company that's just supporting America right well the secret is the timu business isn't really brand new they're actually a subsidiary of a company called pendoo which is a major Chinese e-commerce company and Pino was founded in 2015 using the same exact model that timu is currently using crazy low prices for products that are shipped directly from a manufacturer to the company but pendoo struggled it had its doubters people didn't believe it was possible I mean to be honest with you I still barely think that this model should work but it does but pend Doo managed to have huge success in the Chinese market and today the company is worth over 95 billion and with the money that they had pendoo launched an advertising attack on the US market with this brand new company Teemu and now that it's infiltrated the US customer base and dug its claws into e-commerce I have to say as an Amazon FBA seller I I hate this but I don't think teu is really going anywhere and if you're new to the channel my name is Travis I've been an Amazon Seller for over eight years I used to have a 9 to-5 job I quit that to start my first passive income business and I've since launched a bunch of other businesses and I'm proud to say that I am a seven figureure Amazon FBA seller and for me the easiest way to make money online and what I always teach people to do is to sell on Amazon to use the Amazon FBA model I've had over a th000 people that I've taught this model to and if you don't know how Amazon FBA works it's where you can sell products on Amazon's website you buy products in bulk at a discounted price you then list those products on Amazon for an increased price and you ship those products into the Amazon warehouse and anytime someone goes to Amazon's website and buys your product Amazon will pick pack and the ship the products from their warehouse to your customer it's the easiest way on Earth to build your own passive income business and to be honest with you I still think that's true despite what Teemu has done I still think that Amazon FBA is the best way to build a passive income business now it is becoming harder and harder every year to build your business on Amazon and now that Teemu is sucking up a lot of Amazon's customers this may even get more difficult if you're selling junk products because at the end of the day Teemu is mostly selling junk it's selling cheap stuff without a brand and I never recommended selling those type of products on Amazon now keep in mind the way that Amazon makes money from us thirdparty sellers that's people like you and me selling our products on Amazon is they charge us fees there's a 15% selling fee meaning for anything that you sell on Amazon Amazon will take 15% of that fee now there are ways around this if you use the brand referral program and you actually have a brand you can get that down to 5% and on top of this Amazon charges things like Pick and Pack fees storage fees and some other random fees But ultimately I think it's worth the money to pay Amazon these fees because things like the Amazon FBA Pick and Pack fee it's actually cheaper to use Amazon to ship your products for you than it would be for you to ship your products yourself but Amazon is constantly tacking on new fees right now in 2024 we're even being penalized for having inventory levels that are too low they also ding you if you keep your inventory in their warehouse for too long if you have too much inventory so Amazon's really putting a lot of pressure on thirdparty Sellers and they're making more money off of us and the good thing about this is if you're paying attention these fees won't really affect you and they will affect your competitors which will make selling on Amazon a little bit more difficult but it's going to reward the people that are doing it right Teemu is selling unbranded products for pennies on the dollar and these identical products are being sold on Amazon for a much higher price and everybody is starting to notice all because teu is using every loophole they can to keep their prices low teu has a huge tax advantage over Amazon FBA sellers when it comes to importing meaning that all their cheap Chinese manufacturing partners are able to dodge expensive tariffs import taxes and custom duties the reason that teemu's manufacturers are able to avoid a lot of these fees is because they're shipping individual items into the US whereas Amazon sellers people like you and me are importing crates and containers of our products from probably to be honest the exact same manufactur but what happens when you import a big number of units is that you have to pay custom duties tariffs fees and things like that however if you're only sending in one item you don't have to pay any kind of customs fees and this means as an Amazon Seller you and me we're never going to be able to sell products cheaper than Teemu bottom line is Teemu is always going to be the cheaper platform and there's nothing you and me can do about it now in the future there may be new regulations that come out that make it so that any product purchased through teu is going to have to pay those those same import fees and duties in fact I'm willing to bet eventually this will be the case but for now if you're an Amazon Seller don't think that you're going to be able to compete on Price timu is always going to be cheaper another reason why timu has had so much success is When teu has you on the app they don't want you to leave they do a really good job in keeping customers on the app in fact Teemu outworks Amazon with getting you to do advertising for them how do they do this by gamifying the entire shopping experience the second you open up the teu app teu starts bombarding you with dopamine hits they instantly offer prizes to every single Shopper you're encouraged to spin the prize wheel for massive discounts who wouldn't want to save 50% on a product and by getting you and its customers to spin the wheel it's getting your dopamine to fire it's getting customers addicted to the app and addicted to shopping and it's not just the prize wheel Teemu takes customer engagement one massive step further Teemu encourages Shoppers to play games on the app to win coins to trade for even more discount coupons the app is fun it's engaging and you're always going to be a winner on the app so sure customers will spend more and more time on the app and more and more money if that's not enough Teemu also has a huge bonus that Amazon just doesn't have and that is on the Teemu app it's a social experience if you team up with some friends you can get group discounts you can even get discounts by sharing referral codes on Facebook Tik Tok and Instagram this leaves Amazon in the dust so you might be wondering where does Amazon stand in this e-commerce battle they must be feeling the pressure well it's not all bad 50% of customers still start their search for products that they want to buy on Amazon because after being in business for 30 years Amazon has earned customer loyalty and they have over 310 million Prime customers worldwide that trust the reliable fast shipping and compared to Teemu Amazon still has a much wider selection of products and that's because there's over a million Amazon FBA sellers just in the United States selling unique interesting products and the products that are being sold on Amazon are more premium they actually have strong Brands there is something that Teemu will never be able to compete at with Amazon and that is consumable products things like fresh groceries delicious snacks and basically any type of food I recently launched a supplement called carnivore electrolytes and this is the type of product that you wouldn't want to buy on Teemu because it has a brand it's a premium product it's consumable and do you really want to buy consumable things from teu at a cheap price probably not most people still don't trust Chinese manufacturer to be making things that they're going to be putting inside their body and so even though Teemu is starting to disrupt Amazon keep in mind in 2023 teu only had $6 billion in Revenue where Amazon did $570 billion in Revenue a big part of Amazon's success is because it has Brand recognition it has our loyalty most people have purchased something from Amazon we know if there's an issue we can return it we know if there's any problems that Amazon will give us our money back and we know that when we go to buy something we can get it overnight shipping or in 2day shipping and even though teu is spending a lot of money on Advertising right now last year Amazon spent over $20 billion advertising their website and their services now teu is spending a lot of money on advertising in fact they spent $21 million on just one Super Bowl ad last year that's when a lot of people started learning about what teu is and even though it seems like the teu growth is Unstoppable keep in mind teu still has plenty of its own challenges teu has been having trouble with scammers that are creating imitation sites and these sites will infringe on teemu's trademarks and these websites would create fake coupons that would install malware on customers devices which tarnished teemu's reputation and made it so that customers lost a lot of trust in their company timu is also facing a legal battle with one of its biggest Rivals Shen because Shen alleges that teu sellers have been stealing images from their website and using them to sell products on teu on top of that teu has also been accused of paying influencers to comment negatively about Chen with all this attention and the fact that Tik Tok has been facing a potential ban in the United States Teemu might be the next app that's on the chopping block both Tik Tok and now teu have perceived connections to the Chinese government because keep in mind in China all businesses are owned 50% by the Chinese government and the United States government doesn't want you using apps and downloading things where you might be giving your data away to the Chinese government and when you sign up for and use Teemu they have access to a lot of information about you your name phone number email and credit card details not to mention all your purchase history and if you used your social media account to log into Teemu they've also got your profile photo and everything you've ever shared on your profiles plus your IP address and location but even with all this teu drama the icing on the controversy cake is timu still can't get accreditation with the Better Business Bureau and has a C+ rating the average customer review for Teemu is just 2.5 out of five stars and because customers have repeatedly received broken or damaged products there are more than 1,600 complaints from just the last 12 months that have been lodged against timu so this brings us to the question has timu officially killed Amazon and Amazon FBA sellers like you and me is this opportunity to sell on Amazon now dead and the answer is a little bit complicated because the truth is in the past you could sell junk items on Amazon and make a ton of money even as an American third party seller that opportunity is dead but to be honest that opportunity's been dead for a while on this channel for the last few years I've been telling you do not just private label junk products from alibaba.com and the people that are still doing that yeah you're you're done teu has officially killed your business because people that are buying those junk products on Amazon all they care about is price they're just going to go with wherever the lowest price is and now team has a price that's so low that you just can't compete so what do you do instead well I've been sharing with you exactly what you need to do to still have success with Amazon FBA throughout this entire video you need to create a premium product with a brand and you don't want to try to compete on price you want to sell to people that are willing to pay more money for higher quality because Teemu is not about quality it's always going to position itself as the cheapest product on top of that if you can create some kind of social media or a following your business is going to have a ton of success I always recommend if you're going to be selling on Amazon to create what I call a passion product and right now I'm actually going to give you a free 8 Hour Amazon FBA course it's completely free all you have to do is Click right here and this is going to show you step by-step a way to sell an Amazon in 2024 that still works that despite Teemu this way of selling on Amazon still works so click on that video I'll see you in the next video thanks for watching

Channel: Travis Marziani

Views: 20,729

Keywords: Ecommerce, Online Store, Internet Marketing, Online Marketing, Shopify, online shopping, marketing, Effective Ecommerce, Amazon FBA, Private Label, entrepreneur

Id: 52srIoQJfwU

Length: 16min 24sec (984 seconds)

Published: Wed Jul 03 2024