Why Is Temu So Cheap? The Shopping App People Can’t Stop Talking About
Susan Johnson, a consumer living in the United States, shared her experience shopping with Temu on Trustpilot. She praised its vast array of products available at incredibly low prices. Johnson was particularly fond of the jewelry section, where she managed to purchase diamond rings for a mere $1.87, which, to her surprise, closely resembled real diamonds.
“I especially love the jewelry... I love the earrings, ankle bracelets, hair accessories, makeup, and even have had great success with some clothing I ordered,” she wrote in a review on Trustpilot.
Over in the UK, first-time customer Amanda Davey decided to take a chance on Temu and was pleasantly surprised by her experience. Davey’s order consisted mainly of hair care products and supplies for jewelry making, beading, and crafting. She was pleased when her parcel arrived on the first day of the stated window, just eight days after she placed her order.
“Everything was included, and was of the quality seen in the photos. I am very pleased with my first order and will be ordering again,” she wrote in a Trustpilot review.
Temu, a Boston-based online marketplace, has gained traction among consumers worldwide with its extensive selection of quality general merchandise at ultra-low prices. The platform also offers free shipping and a generous 90-day return policy, on top of a guarantee to make good the difference should prices drop within 30 days of a customer’s order.
Unlike warehouse clubs like Costco and Sam’s, customers do not need to pay for an annual membership and can purchase items at wholesale prices without having to buy in bulk. Temu has also been compared variously to off-price retailers and dollar stores due to its competitive pricing.
“Temu has created a distinctive retail niche, operating as an off-price, extreme discounter mega-variety store in the digital realm,” Richard Crone stated in a LinkedIn post. “It represents an online-only adaptation of traditional brick-and-mortar retailers such as Dollar General Store, MARSHALLS LLC, TJ Maxx & HomeGoods, and Ross Stores Inc., which primarily focus on physical in-store marketing.”
Temu has “seamlessly digitized the merchandising formula of these established retailers, combining rapid inventory turnover with a unique supply chain advantage” that offers direct-to-consumer shipping from low-cost manufacturers, he added.
Temu reportedly is able to keep its prices so low because it has direct access to a pool of global suppliers, many of which are the manufacturers themselves. By eliminating unnecessary middlemen, Temu says it is able to transfer the cost savings directly to shoppers through lower prices.
According to Bloomberg Second Measure, an analytics firm that assesses billions of credit and debit card transactions, spending on Temu exceeded that of the established fast-fashion retailer Shein by 20% in the U.S. in May.
Since its debut in September 2022, Temu has expanded to more than 20 markets, including Canada, UK, France, Germany, Australia, and Japan. It stocks more than 200 categories of products, selling everything from toothpaste and shampoo to power drills and patio furniture.
Consumers have taken to using Temu in different ways. There are those who use Temu to lower their household costs by snapping up bargains on essential items from toothpaste to toilet paper. Others buy clothes to add variety to their wardrobes, some stock up on craft supplies. One small food-and-beverage business owner found it cheaper to buy kitchenware and household goods from Temu than her usual supplier. The lower costs helped to keep her business afloat. Yet others enjoy shopping for bric-a-brac from Temu’s suppliers from around the world.
Whichever the case, Temu has given consumers an additional avenue in which to access a wide selection of competitively priced general merchandise at a fraction of the price charged by traditional retailers and other e-commerce sites.
Savings on these essentials have helped consumers to do more with their money, whether it is taking up a new hobby or going on a vacation. They have also helped households struggling with inflation and higher interest rates to cope.
In a YouTube video, Rosie Tilley, a Temu customer, showcased a variety of items she purchased, from clothing and accessories to finds like phone camera lens protectors. While she acknowledges a few disappointments, such as a handbag that fell short of her expectations, she expresses overall satisfaction with her purchases.
“I’m definitely going to be exploring more of what Temu has to offer,” she said.
McClatchy newsroom and editorial staff were not involved in the creation of this content.
