Temu Faces Pricing Challenges in the 2025 E-Commerce Battle with Amazon

Temu is struggling to rebuild its US online retail presence due to Amazon's dominant pricing power, which prevents Temu from offering significantly cheaper branded products. The company has faced challenges after changes in US import duties and has reduced advertising, leading to a sharp decline in active users. Temu's efforts to incentivize sellers and compete on price are limited by Amazon's ability to match or undercut prices, making it difficult for Temu to gain market share without risking losses or offering non-branded or discounted goods. The company advocates for fair competition amid these challenges.