That is correct, Temu now has more monthly active users (MAUs) than any other global e-commerce platform, including Amazon. Data from Bernstein Research shows that the PDD Holdings-owned platform has overtaken Amazon in terms of MAUs, as well as reaching 50 billion USD in gross merchandise value (GMV) in 2024. The report also projects that its GMV will be between 70 to 80 billion USD this year.
Pundits attribute the growth to Temu’s rapid expansion. It became one of the most popular shopping apps in the US, 1 week after launching in North America in September 2022. Then, the platform quickly launched European sites in the UK, Germany, France etc. In 2023 and 2024, Temu expanded into the Southeast Asian market to countries like Thailand, Vietnam and Singapore. However, governmental hurdles like bans and regulations in Vietnam and Indonesia slowed down the platform’s expansion in the region.
As we enter 2025, Temu began its advertising service and started monetising ad opportunities as merchants battle for traffic and exposure. The Bernstein study points out that among the GMV in the US, local merchants contributed nearly half of it. The merchant ecosystem of Temu is now more diverse than ever without being over-reliant on those shipping from China. Meanwhile, data also shows that Temu had been downloaded over 50 million times monthly between May and July globally, three times that of Amazon.
On the other hand, Amazon is quickly following in Temu’s footsteps in the affordable segment with Haul right before last Black Friday. With some merchandise cheaper than Temu. To build its economic moat in the face of competition, Temu is considering a third-party marketplace mode that grants merchants more autonomy with the platform, only charging commission on sales, similar to what Amazon has been doing with its marketplace.
