Amazon Dominates Holiday Sales: This holiday season, online retailers like Temu.com and Shein are drawing millions of visitors, but their conversion rates lag significantly behind Amazon. According to Similarweb, a whopping nine out of ten visitors to their websites are just window-shopping.
Shein, based in Singapore, has expanded its offerings, including kitchen mixers, holiday decorations, and headphones. Despite drawing 28.6 million unique monthly visitors in October, only 4.1% of visits resulted in actual transactions, down from 4.6% the previous year. Temu, which entered the U.S. market in September 2022, experienced a surge in visitors, reaching 42 million in October 2023, but only 4.5% converted into buyers.
In contrast, Amazon dominates with 56% of its 268 million unique monthly visits translating into purchases. Temu, fueled by aggressive marketing, overtook eBay in Europe in October, with 51 million monthly active users. Shein’s app had 64 million monthly active users, a two-thirds increase from a year ago.
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Both Temu and Shein have ramped up holiday marketing and increased ad spending, with Shein even launching a pop-up shop in news Square. However, the comfort level of online shoppers with Amazon’s extensive product categories, speedy shipping, and reliable return policies remains a significant advantage.
Despite facing heightened competition, Amazon experienced increased purchasing visits and unique visitors in the U.S. in October compared to the previous year, according to Similarweb. The competitive landscape intensifies as Black Friday approaches, and Amazon continues to engage users effectively, even with reduced holiday advertising spending compared to the previous year.
Peter Pernot-Day, head of corporate strategy at Shein, emphasized the company’s guidance to sellers, advising them to optimize product listings by providing competitive pricing and maintaining up-to-date inventory. As the holiday shopping frenzy unfolds, the battle for online retail supremacy intensifies.
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