Core Insights - The core issue faced by merchants on the Temu platform is a consistent struggle with operational efficiency despite significant resource investment [1][2][4] - The competitive landscape is intensifying, particularly following regulatory changes in the U.S. that have forced Temu to shift to local warehousing, resulting in a dramatic drop in daily active users [2][4] Group 1: Platform Dynamics - Temu's traffic distribution is fundamentally different from traditional e-commerce platforms, relying on algorithm-driven recommendations rather than keyword optimization [2][4] - The platform's algorithm is highly sensitive to initial performance metrics, particularly within the first 48 hours of a product's launch, which can determine its future visibility [4][7] - Merchants are struggling with inventory management, as the platform penalizes slow-moving stock, leading to a need for rapid turnover [7][9] Group 2: Supply Chain Challenges - The shift to localized warehousing has increased the complexity of supply chain management for merchants, requiring them to balance domestic and overseas inventory [5][12] - Many merchants face significant losses due to poor inventory turnover, which can account for over 30% of net profits in some cases [5][10] Group 3: Data Analysis and Decision-Making - A significant majority of cross-border e-commerce merchants identify data analysis as their biggest capability gap, with only 15% having an effective data system in place [8][10] - The reliance on outdated data for decision-making is a critical disadvantage, as Temu's algorithm adjusts traffic distribution in real-time [9][10] Group 4: Successful Strategies - Successful merchants leverage advanced operational systems that utilize real-time data monitoring and predictive analytics to enhance efficiency [10][12] - Technology providers are emerging to support merchants in improving operational efficiency, focusing on automating repetitive tasks and integrating data from various sources [10][12][15] Group 5: Future Outlook - The competitive environment in Temu's cross-border e-commerce is expected to become increasingly complex, emphasizing the need for operational efficiency [14][15] - Merchants are encouraged to adopt technology solutions incrementally, starting with the most pressing operational challenges [14][15]