Online retailers Temu and SHEIN reportedly draw millions of visitors to their websites but struggle to convert those visits to sales.
Despite their popularity, the two retailers still lag behind market leader Amazon in terms of conversion rate, as per reports.
According to the analysis, which used data from Similarweb, nine out of ten visitors to Temu’s and SHEIN’s websites were window shoppers as opposed to buyers. This suggests that although the businesses have been effective in drawing a sizable audience, they have had difficulty turning those visits into sales.
According to the data, SHEIN’s website had 28.6 million unique monthly visits in October, up 7.25 per cent over the same month the previous year. In contrast to the prior year, SHEIN’s website visits saw a decrease in the conversion rate from 4.6 per cent to 4.1 per cent.
According to the research, Temu, which debuted in the United States in September 2022, had a spike in website traffic in October, reaching 42 million unique monthly visitors—more than four times the volume from the previous year. But just 4.5 per cent of these visits resulted in actual transactions.
According to the research, Temu and SHEIN have both used aggressive marketing techniques to draw in more clients. SHEIN, for instance, has increased the scope and variety of products it offers by stepping up its Christmas marketing campaigns in the US and Europe. The company’s enhanced valuation of US $ 90 billion is partly a result of its recent acquisition of Missguided, an online retailer based in the United Kingdom.
According to the analysis, which used data from Sensor Tower, SHEIN increased its advertising spend by 60 per cent in the first two weeks of November over the same period last year. Temu also increased their advertising budget by twofold in the same period.
As the holiday season progresses and Black Friday approaches, the competition among online retailers will intensify, the report said. To stay competitive, SHEIN has advised its marketplace sellers to optimize their product listings by offering competitive pricing and keeping inventory up to date.
