How much profit should be added to the supply price of Temu? How is the price determined?

When operating cross-border e-commerce business on the temu cross-border e-commerce platform, it is necessary for suppliers to set a suitable price for their products. So let’s find out how much profit is added to the temu supply price?

1. How much profit should be added to the TEMU supply price?

Generally speaking, temu product pricing needs to consider the following factors:

1. Supply price: This is the cost you pay to purchase the product from the supplier, including the price of the product itself and shipping costs.

2. Operating costs: These are the costs you incur for operating on a cross-border e-commerce platform, including platform commissions, advertising fees, warehousing fees, logistics fees, etc.

3. Profit margin: This is the percentage of profit you hope to make from each product, and usually depends on your competitiveness and market demand.

4. Market price: This is the average selling price of similar products in your target market, which can be obtained through competitive product analysis and market research.

Based on the above factors, we can get a simple formula to calculate the pricing of cross-border e-commerce products: selling price = supply price x (1 + profit margin) + operating costs.

For example, if the supply price of a T-shirt you purchase from a supplier is 10 yuan, you hope to make a 30% profit on each T-shirt, and your operating cost on the cross-border e-commerce platform is 5 yuan, then you can price your T-shirt as: selling price = 10 x (1 + 0.3) + 5 = 18 yuan.

Of course, this formula is just a reference, and you still need to adjust your pricing strategy according to market prices and customer psychology. If your price is too high, you may lose customers; if your price is too low, it may affect your brand image and profit margin.

2. How is the price of TEMU determined?

1. Market demand and competition

The price of cross-border e-commerce must first consider the demand and competition of the target market, and determine a reasonable pricing range and target profit margin based on market research and data analysis. At the same time, it is necessary to pay attention to the price dynamics of competitors and adjust one's own pricing strategy in a timely manner to maintain a competitive advantage.

2. Commodity costs and operating costs

The price of cross-border e-commerce also needs to consider the purchase cost, packaging cost, storage cost, logistics cost, etc. of the goods, as well as the operating costs of the platform such as commission, tax, exchange rate, etc. These costs will affect the profit margin of the merchants, so they must be reasonably controlled and optimized to improve efficiency and reduce costs.

3. Product characteristics and value

The prices of cross-border e-commerce must also take into account the characteristics and value of the goods, such as brand, quality, function, design, innovation, etc. These factors will affect consumers' cognition and preferences, and thus affect consumers' willingness to pay.

4. Consumer psychology and behavior

The prices of cross-border e-commerce must also take into account the psychology and behavior of consumers, such as demand elasticity, price sensitivity, reference price, promotion effect, etc. These factors will affect consumers' purchasing decisions and feedback.

The pricing of temu products is a complex and important issue, which involves multiple factors and strategies. At the same time, sellers need to constantly test and optimize their pricing strategies to achieve the best sales and profits.

Recommended reading:

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Does Temu's pricing include shipping costs? What shipping costs do Temu sellers bear?

Has any Temu supplier made money? How to settle Temu payment?