Outsmarting Amazon & Temu: Holiday Strategies for Small Brands!

The holiday shopping season is shaping up to be another long and complex period for e-commerce brands. While the extended three-month shopping spree offers plenty of opportunities, it also presents unique challenges. One persistent obstacle threatens to overshadow the excitement: the rise of inexpensive online marketplaces.

For years, small and midsize businesses (SMBs) have navigated the challenge of competing with e-commerce giants like Amazon. However, the meteoric rise of Chinese marketplaces like Temu is poised to disrupt this year’s holiday sales even further.

Over half of U.S. online shoppers have tried Temu in the past year, and Amazon has responded by launching a similar discount store within its app. As consumers increasingly seek out bargain deals, e-commerce brands must find ways to stand out. Here’s how they can successfully compete this holiday season.

1. Emphasize Faster Delivery Times

Temu’s low prices come with a trade-off: lengthy shipping windows. Shoppers often wait 6–20 days for their orders, depending on whether the items ship from the U.S. or overseas. In fact, nearly one-third of Temu customers cite long delivery times as their main frustration.

E-commerce brands can capitalize on this by promoting their faster shipping capabilities. Highlighting quick delivery options, especially as the holidays approach, can sway last-minute shoppers. Use prominent messaging across your website, email campaigns, and social media ads to reinforce this advantage. Create urgency by emphasizing how your brand ensures gifts arrive on time, even as major marketplaces fall short.

Starting this messaging early in the season builds consumer trust and positions your brand as a reliable choice during the hectic holiday rush.

2. Highlight Your Brand’s Unique Strengths

Despite their scale, marketplaces like Temu and Amazon often lack the personalized touch and quality assurance that smaller brands can provide. E-commerce businesses should lean into these differentiators to capture shoppers’ attention:

• Product Quality: More than a quarter of Temu customers report dissatisfaction with product quality. Use this opportunity to spotlight your superior offerings. Showcase customer reviews, star ratings, and testimonials prominently on your website and in marketing campaigns. Social proof can be a powerful persuader, especially during gift-giving season.
• Domestic Roots: Shoppers may feel more inclined to support U.S.-based businesses or those with local customer service teams. Highlight your brand’s domestic presence and showcase your team with personalized stories, such as staff-picked holiday favorites.
• Return Policies: Even if you don’t offer free returns, a clear and customer-friendly return policy can build trust. Combine this with your other strengths, such as quality and fast shipping, to give shoppers confidence in choosing your brand.

Promote these differentiators consistently across all touchpoints, from email campaigns to SMS messages and website banners. These efforts create a cohesive brand story that resonates with consumers.

3. Leverage Email and SMS Marketing for Personal Connections

While you might not outpace Amazon in shipping times, you can outperform them in customer relationships. SMBs have the unique ability to connect directly with their audience through personalized marketing channels like email and SMS.

• Exclusive Offers: Run email- and SMS-only promotions to create a sense of exclusivity. Focus on key shopping dates such as Black Friday, Cyber Monday, and the final days before Christmas.
• Engaging Campaigns: Use conversational language and highlight top-rated products and testimonials. Craft campaigns that feel personal and establish trust, giving your brand a human touch that massive marketplaces struggle to replicate.
• Automated Messaging: Automated emails, such as welcome, browse abandonment, and cart abandonment messages, drive significant sales. These messages are highly effective, accounting for 41% of email orders while representing just 2% of total email sends. Incorporating SMS reminders into these flows adds another layer of engagement and convenience for shoppers.

By targeting customers at critical points in their shopping journey, you can increase conversion rates and strengthen brand loyalty.

4. Adopt a Value-Driven Strategy Amid Economic Uncertainty

This holiday season, consumers are juggling election-year anxieties and economic concerns. In response, brands should focus on delivering tangible value. From loyalty programs to limited-time discounts, every interaction should reinforce the idea that shopping with you is not just about a purchase—it’s about a superior experience.

• Offer bundled discounts or gift packages to enhance perceived value.
• Emphasize sustainability or ethical practices if they align with your brand, as more consumers are considering these factors in their buying decisions.
• Run “Shop Local” campaigns to draw attention to your community-oriented values.

5. Leveraging Local Communities

Small brands can leverage local markets to showcase their products and connect with holiday shoppers directly. Pop-up events offer unique opportunities to engage with the community and build lasting relationships. Partnering with local influencers can amplify your brand’s visibility, while collaborations with nearby businesses allow you to tap into established customer bases. Hosting joint holiday events with other brands strengthens your presence and fosters community spirit. Offering exclusive local promotions encourages shoppers to choose your brand over larger competitors. Additionally, participating in charity events or sponsorships enhances your reputation and goodwill. By focusing on local storytelling, you create an emotional connection that resonates with your audience and sets your brand apart.

6. Preparing for Post-Holiday Success

To ensure post-holiday success, focus on maintaining engagement with your holiday customers. Start by sending personalized thank-you emails to show appreciation and build loyalty. Offer exclusive New Year promotions, such as discounts or limited-time bundles, to encourage repeat purchases. Create engaging social media content, like polls or challenges, to keep your audience active and invested. Use email and SMS marketing to share product recommendations based on past purchases. Introduce a loyalty program or referral rewards to motivate customers to return and bring in new shoppers. Lastly, gather feedback from holiday buyers to improve your offerings and demonstrate a commitment to customer satisfaction. These strategies will help turn one-time holiday shoppers into long-term supporters.

Final Reflections

The rise of discount marketplaces like Temu and Amazon’s aggressive moves into bargain shopping create undeniable challenges for SMBs. However, by leaning into what makes your brand unique—whether it’s faster delivery, superior quality, or a personal touch—you can carve out a competitive edge.

Use thoughtful marketing strategies, including email and SMS, to build meaningful relationships with your audience. Focus on delivering value at every touchpoint, and don’t shy away from highlighting what you do better than the giants.

By staying consistent and customer-focused, smaller brands can turn these challenges into opportunities for growth this holiday season.