E-commerce platforms, from Takealot and Amazon to Wish and Shein, have boomed both in South Africa and internationally over the past few years.
According to Statista, almost 80% of the South African population used the internet in 2022.
The rise in internet usage is one of the major drivers behind the uptick in e-commerce platforms, as increased internet connectivity allows retailers from around the globe to compete in the South African market.
Now, there is a new kid on the block that is selling everything from car accessories and power tools to kitchen appliances and baby clothes.
Temu is an e-commerce platform that connects consumers with merchandise partners, manufacturers, and brands that offer near wholesale prices, according to Damian Velayadum, Group Financial Director at Fastway Couriers.
Due to the size of the Chinese market, products can be manufactured in bulk, lowering production costs.
Who is Temu?
Chinese e-commerce platform Temu launched in January in the country.
According to Statista, Temu holds the top spot as the number one shopping app in the App Store and Play Store, with over 30 million new downloads every month.
The e-commerce platform is using local last-mile delivery suppliers such as Fastway Couriers to support its logistical needs in South Africa.
“We’ve started receiving parcels directly from Temu and we anticipate parcel volumes to continue to grow throughout the year ,” Velayadum said.
Fastway is also the preferred last-mile delivery supplier to Mr Price, Mr Price Home, and OneDayOnly.
Temu offers free shipping for orders under a certain value and delivery within 10-13 days.
Velayadum said: “Their speed to market and competitive pricing is likely to be the reason for the growth trajectory they are on.”
IOL Business