Temu in Switzerland: 4 tips on how to stay competitive as an SME

The 2024 online retailer survey shows: The tougher market situation is causing problems for Swiss retailers, especially the competition from Asian platforms such as Temu and Co. These tips are designed to help you compete with them.

With personal advice, a high-quality product and a clear brand presence, you can hold your own against the competition from Asia.

For the seventh time, the Zurich University of Applied Sciences (ZHAW) conducted the annual online retailer survey, for the first time together with the University of Applied Sciences Northwestern Switzerland (FHNW). The comprehensive study provides important insights into the trends and challenges in e-commerce and is therefore a must-read for interested online retailers.

If you want to study the Online Retailer Survey 2024 in detail, you can download it here.

This year, 624 online stores from Switzerland, Austria and other countries were surveyed on various topics - such as which payment methods they offer, which sales channels they use and which payment provider they rely on. Payrexx performed very well in the latter question and, with 18% of responses, remains one of the most popular payment service providers among Swiss SMEs and online merchants.

Asian marketplaces increase the pressure

Probably the most important part of the survey is the so-called "e-commerce concern barometer", in which retailers talk about their biggest challenges. As in 2023, the current market situation is the main concern this year: Competition is constantly increasing and price pressure continues to rise.

The barometer of concerns from this year's online retailer survey shows: The current market situation, including increasing competition, is a particular concern for Swiss online retailers.

The abolition of industrial tariffs on January 1, 2024 was a decisive event: previously, duties were levied on certain imported goods to protect domestic producers from foreign competition. Now, however, Asian platforms such as Temu or Shein can import their goods into Switzerland at no additional cost - and thus offer them at even lower prices.

So how can you as a retailer hold your own against the increasing competitive pressure from Asia? The Online Retailer Survey 2025 also provides important input and strategies in this regard, which we summarize for you below.

1. promise quality - and deliver it!

The product looked great in the pictures, but shortly after arriving at home you are disillusioned: the product is cheaply made, smaller than promised or looks completely different from the pictures. You can use these negative experiences to your advantage. 78% of the retailers surveyed also try to differentiate themselves through the quality of their products. You should convey this accordingly in the product description.

The following points speak for the quality of your goods or services:

• Your products are handmade and unique.

• The manufacture of your products is fair, sustainable and environmentally friendly.

• You guarantee the functionality of your goods and offer guarantees.

• Your quality is underpinned by positive reviews and quotes from customers.

2. be available by email, phone or live chat

A major shortcoming of the giant Asian markets is their impersonal feel. Customers are processed quickly, receive AI-generated mass emails and often struggle for hours with support. At the same time, more and more people feel the need for a positive shopping experience. 62 percent of the online retailers surveyed stated that they differentiate themselves through top customer service.

This way you can improve customer service:

• Always treat your customers kindly and show them understanding.

• Offer individual consultations and personalized product recommendations.

• Provide a selection of low-threshold contact options, such as a live chat on your website.

• Be available for your customers not only by e-mail, but also by telephone.

The Online Retailer Survey 2024 lists a large number of possible USPs (Unique Selling Propositions) that Swiss SMEs can use to set themselves apart.

3. deliver quickly and take goods back

One serious disadvantage of the Asian competition is their geographical distance: those who order from Temu and Co. often have to wait weeks for their products. You, on the other hand, can benefit from short transportation and distribution channels. 44% of all participants in the 2024 online retailer survey stated that they were able to compete with foreign platforms thanks to fast delivery. With 39% of responses, an accommodating returns policy seems to be just as important.

The following steps could help you to differentiate yourself in these points:

• Make every effort to ship your products promptly - preferably on the same day. If necessary, work together with a professional logistics partner.

• Communicate the expected delivery times and be realistic.

• Enable your customers to track the status of their shipment live.

• Take back damaged or unwanted goods without much discussion and compensate the customers concerned - either through a discount on the next purchase or a refund of the purchase price.

4. offer a large selection of payment methods

The ordering process at Temu and Co. is associated with a few hurdles. On the one hand, buyers have to provide a large amount of data - including their address and telephone number - and on the other hand, the choice of payment methods is very limited. In addition to credit and debit cards, there is only the choice of TWINT, PayPal, Google Pay or Klarna for purchase on account.

All of these are also included in your Payrexx account, as well as much more. Together with Payrexx, you can optimize the payment process for your customers:

• Find out which means of payment are preferred by your customers and offer them in a targeted manner and with little effort.

• Get access to over 200 national and international payment methods thanks to Payrexx means of payment and expand your customer base.

• Use the increasingly popular mobile wallets such as PostFinance Pay, Apple Pay or Samsung Paywhich are all quickly and easily integrated into your online store thanks to Payrexx.

• Benefit from the highest safety standards for you and your customers.

Together with Payrexx, you can make the payment process as quick and easy as possible for your customers. So that they will prefer to store in your online store in the future than at one of the Asian wholesalers.