Omnisend: Survey shows that Temu's repeat customer rate reaches 34%, exceeding eBay's 29%

Less than two years after entering the U.S. market, Chinese e-commerce upstart Temu has attracted more repeat customers than eBay Inc., a nearly 30-year-old e-commerce pioneer. An April survey of 1,000 consumers found that 34% of respondents said they shopped at Temu at least once a month, surpassing eBay's 29%. Amazon is still far ahead, with more than three-quarters of respondents saying they shopped at least once a month, according to Omnisend, a London-based online marketing company that conducted the survey.

Pinduoduo-owned Temu has been attracting customers with heavy advertising and discounts. Consumers order products directly from China and often have to wait a week or more to receive them. Temu has run ads in two Super Bowls with the slogan "Shop like a billionaire." Burning money on expensive marketing and discounts is a widely used, high-risk promotion strategy. The key to continued success is to develop first-time customers into loyal customers, and at least so far, Temu seems to have cracked that code.

“This shows that Temu’s aggressive marketing, such as the Super Bowl ad and social media campaign, is paying off,” said Greg Zakowicz, senior e-commerce specialist at Omnisend. The Omnisend survey compared consumer sentiment toward established players such as Amazon and Walmart with Chinese upstarts such as Temu and Shein. The margin of error is plus or minus 3 percentage points.

The post-pandemic price surge has triggered some major shifts in consumer behavior. As recently as 2022, more than half of U.S. shopping journeys began on online marketplaces like Amazon, according to an annual survey by EMarketer. That fell to 40% last year. Nearly 30% of shoppers began looking for options on search engines like Google, up from 25% the year before.

The shift to search engines shows that bargain-hunting shoppers want to compare prices by browsing multiple retail sites and platforms, providing opportunities for emerging discounters.

"We are encouraged that Temu's factory-direct supply model is trusted by American consumers for its affordable products," a Temu spokesman said in a statement, adding that the company conducts spot checks and takes other measures to address quality issues.

An Amazon spokesperson said the company is constantly innovating to “provide the best selection, value and convenience.” EBay did not respond to a request for comment.

From Global Market Report