D2C Digest #35 | Temu's call for US sellers, packaging market booming, CPCs rising

Hey there, great people of the D2C community who are building fantastic things! This is your host Berkay writing.

Take a 5 mins break and dive into D2C Digest for a quick overview of what’s happening in the D2C market worldwide!

🔜 Temu Marketplace will be opened to US-based sellers

Temu is set to open its marketplace to U.S. sellers in March, expanding beyond its current all-Chinese seller base. This shift allows U.S. and soon European sellers to fulfill orders from domestic warehouses, differing from Temu's original model of handling everything from China.

Experts suggest Temu's strategy to invite U.S. sellers is aimed at diversifying its product sources and improving delivery times, moving beyond its original model of shipping solely from China.

While attracting established brands may be challenging, Temu is likely to see an influx of Amazon's Chinese sellers, who can offer fast shipping through existing U.S. inventories. This shift reflects Temu's broader ambition to serve a global market from multiple sources, rather than focusing solely on expanding its seller base geographically.

Let’s ask our US-based readers: Would you consider selling on Temu?

🧑‍💻 Consumers prefer shopping on marketplaces over individual retailer websites

Speaking of Temu, an online shopping survey on Temu from December 2023 reveals consumers prefer shopping on marketplaces over individual retailer websites.

The survey, which included over 1,000 U.S. adults, also found that nearly two-thirds consider price the most important factor, followed by product quality and delivery speed. Additionally, the survey highlights the significant role of social media in influencing shopping choices, with consumers valuing personal interest over social media trends in their purchasing decisions.

The top three shopping categories during the 2023 holiday season, according to the Temu online shopping survey, were:

1. Clothing and accessories
2. Household items
3. Consumer electronics

🚀 The global e-commerce packaging market is booming!

ResearchAndMarkets.com now provides the "Global E-commerce Packaging market - Forecasts from 2023 to 2028" report.

The report explains the global e-commerce packaging market is poised for rapid expansion, forecasted to grow from $41.856 billion in 2021 to $118.421 billion by 2028, achieving a CAGR of 16.02%.

The e-commerce packaging market is growing due to changes in consumer lifestyles, such as increasing disposable incomes and busy work schedules. Doorstep delivery and customer support systems are also driving growth. Online platforms are becoming more popular for purchasing needs, particularly in the United States and India. The growth of internet penetration and e-commerce is expected to increase demand for specialized e-commerce packaging solutions in the region.

💰️ Cost per Click on Google rose by 19%

In the final quarter of 2023, advertising spending on Google search ads in the U.S. saw a 17% year-on-year increase, with cost-per-click (CPC) rising by 19%. This growth in CPC and ad spending indicates heightened competition among advertisers on Google Search, making the platform more expensive (as if it’s not already expensive enough).

The report also highlights the significant role of mobile in driving Google search ad clicks, with mobile ad spend up by 19% year-on-year.

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