E-commerce giants SHEIN and Temu are making significant strides in the US market, challenging Amazon’s long-standing dominance. According to mobile app data collected by analytics firm GWS, Amazon has experienced a noteworthy decline in daily users over the past few months, signaling potential market erosion. Despite the ongoing success of Prime Day, Amazon’s daily user count has plummeted from 54 million in April to 46 million. Although Amazon still maintains double the number of daily users compared to its closest competitor, international e-commerce rivals SHEIN and Temu have been capitalising on Amazon’s losses.
GWS reports that Temu, which recently launched in the US in September, has gained nearly 10 million new daily users since the beginning of the year. This surge has propelled Temu into a shared second-place position with Walmart, with both retailers’ shopping apps boasting approximately 17 million daily users. SHEIN, on the other hand, has experienced an increase in daily users from 3.1 million to 4.9 million throughout 2023.
GWS CEO Paul Carter emphasises the need for retailers to adapt swiftly in the face of changing consumer behavior during challenging economic times. Carter highlights how brand loyalty on retail shopping apps can shift rapidly, underscoring the importance of staying ahead of the curve to avoid falling behind.
In terms of user engagement, Temu outperforms both Amazon and SHEIN, with an average daily usage time of 20 minutes per user. SHEIN and Amazon command average daily usage times of 14 minutes and 12 minutes, respectively, according to GWS.
One notable contrast between SHEIN, Temu, and Amazon lies in their user demographics. While Amazon boasts a more balanced user base, with 59 per cent female and 41 per cent male, Temu’s user base is 69 per cent female, and SHEIN’s user base consists of 90 per cent women. GWS suggests that for sustained growth and to pose a genuine threat to Amazon, SHEIN and Temu must expand their customer bases beyond their loyal female audiences.
The trend of market share erosion for Amazon is not limited to the United States. In the United Kingdom, GWS estimates that Amazon lost over 1 million daily mobile app users since January, dropping from 9.3 million to 8.3 million. In contrast, Temu gained 3.5 million users in the month following its UK launch in April, maintaining a stable user count since then. SHEIN has doubled its daily users to 2 million this year. Additionally, GWS estimates that eBay experienced a decline of nearly 2 million daily mobile users, reaching 4.2 million. GWS also highlights Vinted, an online marketplace in Lithuania, which garners 2 million users daily.
