Temu Opens OBM Settlement Channel Mainly Targeting Chinese Clothing Brand Merchants

Recently, according to feedback from merchants, Pinduoduo‘s cross-border e-commerce platform Temu officially launched the OBM channel. As a new supply model for merchants, the OBM channel is aimed at domestic single-store brand merchants with annual sales of more than or equal to 1 million RMB. It has currently opened up recruitment in three major categories: men’s clothing, outdoor sports clothing for men, and maternity wear. It is reported that for top brand merchants who meet the threshold of brand stores, Temu will also provide benefits such as exempted review version, direct brand comparison without price verification, and exclusive traffic incentives.

Specifically, compared to the regular fully managed model, the newly launched OBM project has certain entry requirements. In addition to the single-store sales requirement, it is also necessary to open a new store with a new entity and have buyers apply to join the whitelist. Furthermore, merchants must release more than 50 product SPUs, and existing store entities and their sub-stores cannot enjoy OBM policy benefits.

At the same time, although in specific processes such as selection, quality inspection, and stocking are similar to “fully managed,” it still adopts the model of “selling global products with domestic inventory.” However, the OBM project is more flexible in terms of quality inspection, pricing verification etc., and enjoys various policy benefits.

Clothing products do not need to change the size label. When selecting products in the background, choose European and American sizes. Attach a conversion code and English washing instructions on the physical packaging bag. In the sample approval process, directly follow the European and American sizes for approval. Connect to the ERP system in the background to make inventory management more convenient.

If it is a leading brand in the industry, you will also enjoy benefits from the “Brand Direct” special zone, receive global advertising support, as well as one-on-one VIP guidance from a gold medal operations team and industry director. It is worth noting that Temu has opened a green channel for pricing for leading brand merchants, bypassing price verification directly through brand comparison, forming a new pricing mechanism.

At present, the key categories for investment in the OBM channel include tops, bottoms, suits, workwear, and maternity wear.

It is reported that up to now, Temu has established 55 overseas markets worldwide covering multiple countries and regions in Asia, Europe, North America, Latin America, Africa and Oceania. According to LatePost news report, Temu has set a target transaction volume of $60 billion this year which is 3.33 times the total sales revenue in 2023. The introduction of the OBM model may further help cultivate brand awareness for the platform and promote diversification among merchants as well as rapid enrichment of product supply.

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