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BEIJING, August 31 (TMTPOST) — China"s E-commerce firm Pinduoduo is about to launch a cross-border e-commerce platform. The upcoming cross-border e-commerce platform is tentatively named "Temu" and the North American market will be the first target. The platform is currently in the investment process.
In response to the cross-border e-commerce business, Chen Lei, chairman and CEO of Pinduoduo, said at the second quarter earnings meeting on Monday that, as a long-term company, Pinduoduo is exploring new opportunities, and overseas business is one of the directions worth working on. Many peers have achieved good results, but Pinduoduo will not simply repeat what other companies have done.
The platform"s first target is the U.S. market, with priority given to recruiting sellers who have experience as suppliers in the North American market and experience in operating cross-border e-commerce platforms and independent stations. The company also emphasizes that the requirements for entry are "source factories and traders that can guarantee production capacity, product quality, and stable production and inventory".
Pinduoduo released "Free entry, Free commission" preferential policies to attract sellers at the current stage. For reference, Amazon"s commission for different categories is between 8% and 15%.
The commission for his products on Amazon is generally 15%, according to a seller of home shoes and apparel in Ningbo, Zhejiang Province.
A Hangzhou-based cross-border seller in the apparel category has a wait-and-see attitude toward Pinduoduo"s new platform. He said bluntly that the business model of Pinduoduo is essentially recruiting suppliers to supply to the platform which operates itself. There is no commission at all because the platform pays the seller only a supply price.
The company"s main goal is to provide the best possible service to its customers. As the third pole of Chinese e-commerce, Pinduoduo no longer has such a huge and mature traffic pool on WeChat after going overseas, and it remains to be verified whether the successful experience at home can be copied to foreign countries.
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