Analysis of Optimization for the Semi-Hosting Model in Cross-Border E-Commerce Platforms: A Case Study of Temu

Abstract

In September 2022, Chinese e-commerce giant Pinduoduo ventured into the international arena with the launch of Temu, a cross-border e-commerce platform. Temu aims to swiftly capture the North American market by implementing the concept of "teamwork leading to price reduction," which suggests that the more people buy, the lower the prices go. Additionally, Temu is actively expanding into European and Asian markets. Compared to other cross-border e-commerce platforms, Temu has emerged as a rising star due to its combination of high quality and low prices. Taking Temu as a case study, this article systematically explores the emerging semi-managed model in cross-border e-commerce platforms. It analyzes the concept and basic operational mechanisms of the semi-managed model, discussing its advantages such as cost reduction and merchant attraction. Furthermore, the article also points out potential drawbacks faced by Temu in implementing this model, including low profit margins and communication difficulties. Lastly, corresponding improvement suggestions are proposed.