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Diving certificate:

• According to a survey of 1,000 American consumers by marketing technology firm Omnisend, more than a third (36%) of shoppers are turning to Chinese marketplaces in search of bargains this holiday season.
• Nearly half (48%) of Gen Z consumers shop on Chinese marketplaces.
• According to the survey, Temu is the overall preferred Chinese marketplace for 23% of US shoppers, followed by Shein (18.3%), TikTok Shop (11.9%) and AliExpress (7.3%).

Insight into the dive:

Amazon, TikTok Shop, Temu and Shein are in tough competition for people who want to save. Four out of 10 respondents to a recent survey by Probolsky Research found Temu’s prices to be “much cheaper” than Amazon’s.

In response to ultra-cheap marketplaces, Amazon recently launched “Amazon Haul,” a section of its app and website that offers a selection of products under $20. Most items are under $10, with some as low as $1.

“Chinese marketplaces like Temu have rapidly gained popularity among Americans over the past year,” Greg Zakowicz, Omnisend’s senior e-commerce expert, said in a statement. “Amazon tried to compete with the launch of Amazon Haul, but small businesses face the biggest threat. Their prices and product variety simply cannot compete with Temu and Shein.”

Although Temu and similar e-commerce platforms win over buyers with competitive prices, US consumers are hesitant to trust them. Another Omnisend survey found that 86% of American consumers said they trust Amazon, but only 6% said they trust Temu.

“Although trust in these platforms remains low based on our previous research, the ability to save money continues to attract price-conscious shoppers,” Zakowicz said.

According to a report from Earnest Analytics released earlier this year, 28% of Shein shoppers have also purchased items from TikTok Shop, suggesting customer overlap. A quarter of Temu customers also purchased items from the TikTok Shop.

With nearly 40% of Americans expecting to spend less on gifts this year, Omnisend’s survey suggests that U.S. shoppers, particularly Gen Z consumers, are using Chinese online marketplaces to save money. While nearly a quarter (23%) of Gen Z consumers said they will spend between $101 and $300 on gifts this year, nearly 19% of Gen Z consumers will spend between $51 and $100. Over 20% of Millennials and 18.3% of the generation