Insight Flash: CE data uncovers increasing customer interest in Temu and Shein among Amazon shoppers and key differences by shopping frequency and Prime subscription status.

Amid increasing buzz about the competitive threats of Temu and Shein, CE data reveals increasing customer overlap between Amazon and these newcomers, as well as a higher tendency of loyal Amazon shoppers to try out these sites. Amazon Prime subscribers are more likely to shop at Temu than non-subscribers, highlighting the importance of that offering to fend off competitors. Our clients can continue to monitor the impact of Temu and Shein heading into the important holiday season.

Recent reports suggest that Amazon (AMZN) is closely monitoring the risks to its business from these two players.

CE data shows that cross-shop at Temu among both Amazon.com (owned inventory) and Amazon Marketplace (3rd party sellers) shoppers has steadily increased throughout this year as Temu has ramped up its presence in the U.S. following its September 2022 launch. In August 2023, nearly 3% of Amazon.com shoppers also made a purchase at Temu that month, up from about 1% in March and flat compared to July. Amazon Marketplace shoppers showed similar behavior. Interestingly, while Amazon shoppers are much more likely to shop Temu relative to the overall panel, that higher propensity has remained relatively steady throughout 2023.

Monthly Cross-Shop Data: Amazon and Temu

At Shein, cross-shop is higher at Amazon Marketplace vs. Amazon.com, with both growing throughout the year as well. This divergence among the different Amazon brands could widen in the wake of Shein’s recent launch of a U.S. marketplace for independent merchants.

In the past 3 months, about 5% of Amazon shoppers made a purchase at Temu and 4% made a purchase at Shein. Frequent Amazon customers were more likely to spend at each shopping platform, indicating that people inclined to shop online in general are more likely to explore these new sites. Indeed, more than 6% of consumers that made more than 20 transactions on Amazon in the last 3 months also made a purchase at Temu and Shein.

Similarly, a higher percentage of Amazon Prime members made a purchase at Temu vs. non-Prime members, although the numbers were roughly equal at Shein. To combat Temu, perhaps Amazon will seek to bolster the benefits of its Prime membership offerings.

Amazon Customers Cross-Shop: Temu and Shein

Note: Includes shoppers that made a purchase at either Amazon.com or Amazon Marketplace.

Consumer Edge is the leading provider of alternative data for consumer spending behavior, and the only provider of global revenue signals. Our data offers insights into not only retail shopping consumer spending behavior and trends but hundreds of industries, subindustries, tickers, and symbols. If you’d like to benefit from using Transact US or other products for other industry data year-round to track trends and dynamics like these, reach out to insights@consumeredge.com.

Michael Gunther is the VP Head of Insights for the CEIC. Explore more of his insights here and follow him on LinkedIn.