Comparison of Temu and Amazon's Cross-border Logistics Models

Temu and Amazon are two highly influential and competitive platforms. They each have unique logistics models and operating strategies, providing sellers with different options. There are significant differences in their logistics models in terms of shipping, warehousing, distribution and costs. This article will analyze the core differences between the two from the perspective of international logistics service providers, and provide targeted solutions to help companies optimize logistics decisions.

Comparison of shipping models

Amazon

FBA (Fulfillment by Amazon): Sellers send goods in batches to Amazon's overseas warehouses, and Amazon is responsible for picking, packaging, distribution and customer service. FBA is suitable for sellers who have high requirements for logistics efficiency and customer experience. However, the warehousing and distribution costs are high. For example, 98% of the areas in the United States can achieve two-day delivery, but the long-term inventory costs of large items are significantly increased.

FBM (Fulfillment by Merchant): Under the self-delivery model, sellers can choose third-party logistics on their own, but they need to manage distribution and after-sales by themselves. Sellers manage inventory, packaging, shipping and customer service by themselves. FBM is suitable for sellers who want to control logistics costs and operation processes.

Amazon uses the "overseas warehouse + FBA" model. Sellers need to prepare goods in Amazon's overseas warehouse in advance, and then complete order fulfillment through Amazon's distribution network. It can deliver quickly and efficiently to meet customers' high expectations. However, sellers need to bear higher inventory costs and have higher sales forecast requirements.

Temu

Full trusteeship model: sellers are only responsible for supply, and the platform is responsible for pricing, sales, fulfillment and after-sales. Sellers send goods to designated domestic warehouses, and the platform takes over subsequent operations. This model greatly reduces the operating threshold for sellers, especially for small businesses that lack cross-border logistics experience.

Semi-trusteeship model: sellers ship goods to overseas warehouses in advance by sea transportation, and complete delivery and after-sales according to orders.

Temu adopts the "decentralized procurement + consolidated transportation" model. A large number of goods are shipped to the destination country after small-scale overseas procurement. The advantage is that it has a lower initial inventory pressure and can quickly expand categories. However, due to the long consolidated transportation cycle and low logistics timeliness, customers have a long waiting time.

Comparison of warehousing systems

Temu relies on the platform's self-built overseas warehouse network to reduce the risk of inventory backlog through the "small batch and multiple batches" delivery method. It mainly relies on domestic warehouses for delivery, and the number of overseas warehouses is relatively small. And Temu's logistics operations are usually divided into three stages, and it needs to cooperate with different logistics companies. In addition, Temu provides free storage space support, and sellers do not need to bear the fixed costs of overseas warehouses.

Amazon's FBA warehousing network covers the world, and sellers can choose to store goods in warehouses closer to consumers, thereby shortening delivery time. However, FBA's warehousing costs are calculated based on volume, weight and storage time, and long-term inventory costs are high.

Comparison of delivery timeliness and flexibility

Temu's delivery timeliness varies depending on the model: under the full-hosting model, domestic warehouse shipments can reach the United States in 3 days; under the semi-hosting model, sellers can choose logistics solutions independently and enjoy preferential prices after platform subsidies. Temu cooperates with local express delivery in some areas to complete the last mile of delivery.

Amazon's FBA delivery is known for its high efficiency. 98% of the regions in the United States can achieve two-day delivery, and more than 50% of the orders support next-day delivery. However, the delivery cost of FBA is strongly related to the weight, volume and delivery distance of the goods, and the delivery cost of large items is significantly higher than that of Temu.

Choice of logistics cost

Sellers do not need to bear the logistics costs in the full-hosting model, but need to accept the pricing and operation model of the platform. Sellers in the semi-hosting model need to bear the costs of sea transportation and overseas warehouses, but can enjoy more flexible logistics operations. In addition, Temu's value-added services (such as quality inspection and label change) require additional fees, but the overall cost is lower than the market average.

Amazon's FBA fees include storage fees, delivery fees and long-term inventory fees. The delivery cost of large items is significantly higher than that of Temu. FBM sellers bear the logistics costs themselves, but can choose more economical logistics methods, and need to bear the risks of customs clearance, delivery and after-sales.

Chinadivision International Logistics Service Provider's Solution

For the common pain points of cross-border logistics, Chinadivision International Logistics Service Provider provides the following solutions:

Logistics Solution Customization

Based on the volume, weight and delivery time requirements of the goods, we recommend Temu's full-hosting or Amazon FBA model, and provide first-leg logistics + overseas warehouse one-piece delivery services.

Cost Optimization

By integrating high-quality logistics resources, we reduce the logistics cost of each piece by 20%-40%, and provide free storage space support.

Inventory Management

Provide real-time inventory monitoring and replenishment suggestions to avoid inventory backlogs caused by unsalable goods.

After-sales Service

Provide return insurance and overseas warehouse secondary sales services to reduce return losses.

Frequently Asked Questions

How to choose the right logistics model?

Amazon: FBA is suitable for sellers with high requirements for logistics efficiency and customer experience; FBM is suitable for sellers who want to control logistics costs and operating procedures.

Temu: The full-hosting model is suitable for sellers who want to simplify operations; the semi-hosting model is suitable for sellers with certain logistics management capabilities.

How does the difference in logistics costs between Temu and Amazon affect profits?

Temu uses a fully managed model to reduce the intermediate links, and the price of goods is 30%-50% lower than similar goods on Amazon, but the profit margin of sellers is controlled by the platform. The Amazon FBA model provides higher delivery efficiency, but the storage and delivery costs are high, which is suitable for high-priced goods.

How to reduce cross-border logistics risks?

Choose an international logistics service provider with self-operated channels, customs clearance qualifications and perfect service processes, such as Chinadivision, which can provide a full-link logistics solution from domestic to overseas to ensure the safety and timely arrival of goods.

Why choose ChinaDivision?

As a professional international logistics service provider, ChinaDivision can provide global fulfillment solutions for e-commerce sellers and B2B companies:

Customized logistics plans: Chinadivision helps companies develop logistics strategies that balance costs and service quality, ensure compliance with customs regulations and maintain supply chain visibility.

Advanced technology integration: By leveraging advanced logistics technology, Chinadivision provides real-time tracking and inventory management solutions, enabling companies to make smart decisions and quickly adapt to market changes.

Flexibility and adaptability: Supports a variety of logistics modes from low-cost delivery to efficient fulfillment.

Intelligent management: real-time tracking of each order status to ensure logistics transparency and efficiency.

Economical and efficient solutions: optimize logistics costs and reduce unnecessary expenses.

Global coverage: Whether the target market is Europe, America, Asia Pacific or Africa, we can provide you with customized support.

Temu and Amazon's logistics models have their own advantages and disadvantages, and sellers need to choose the appropriate platform according to their own needs. For sellers who want to lower the operating threshold, Temu's full hosting model is more attractive; for sellers who pursue brand exposure, Amazon's FBA service is still the first choice. No matter which model is chosen, optimizing logistics costs and improving delivery efficiency are always the core competitiveness of cross-border trade.

Chinadivision International Logistics Service Provider is committed to providing B2B companies and e-commerce sellers with one-stop cross-border logistics solutions to help companies efficiently reach the global market. For more logistics solutions or to get a free quote, please contact Chinadivision.