Temu has been a buzzword in the eCommerce world recently. This online marketplace is well-known by people due to its incredibly low prices for most products. Many people compliment the affordability of Temu products on their social media.
On the other hand, some people are questioning why Temu is so cheap and whether Temu products are good.
If you are also wondering why stuff on Temu is so cheap, you’ve come to the right place.
In this article, we will reveal the secrets behind the low prices on Temu.
The reasons why Temu is so cheap
On Temu, you can pay only $1.88 to get a knitted hat and $3.77 for a face massager.
There are several reasons to explain why stuff on Temu is so cheap.
1. Temu’s business model
One reason for the affordability of Temu items is Temu’s business model. Temu is an online marketplace that connects buyers directly with manufacturers and suppliers. When a sale occurs, Temu charges a small amount of commission from sellers. No other middlemen are there to share profits with the sellers. This allows them to set a low price and still earn a decent profit in the end.
2. Pricing strategy
Temu is an emerging marketplace that was launched last year. Pricing low can be a strategy for it to stand out from the competition.
Temu targets the North American market which is occupied with various marketplaces like Wish and Walmart. To compete with these marketplaces, Temu lowers product prices to earn an edge over the competitors. Though Temu can make meager profits per order, a big volume of orders still helps earn money in the long run.
This strategy is also useful for Temu to expand its presence. Not far since its launch, the Temu app has been the number one free app with over 100 million downloads on Google Play store.
3. Low production and labor costs
Though Temu is based in Boston, the majority of products on this platform are shipped from China. The production and labor costs in China are lower in comparison with Western countries. Mass production in the factory further lowers the cost per unit. So Temu sellers can get products at minimal costs and sell at lower prices.
4. Unbranded products
One of the reasons why Temu is so cheap is that most products on Temu are not branded. If you search for some popular brands, you can hardly find them on the search result pages.
For unbranded products, sellers are not eligible to charge a premium for their unique brands. So these products are usually more cost-effective than branded products. Take sport T-shits for example. You can often see that a T-shirt from unknown brand tends to be cheaper than another one with the brand name “Nike”.
5. Heavy discounts on a variety of products
Temu offers heavy discounts on a wide range of products all year round. Generally, you can get a product at 30% to 60% off. During the holiday season, the discount can be up to 90%. Hefty discounts make Temu products much cheaper compared with those on other marketplaces like Amazon. So Temu has been a good choice for budget-conscious customers amidst the economic uncertainty.
6. Low to no shipping costs
Temu provides free shipping for all orders for Standard Shipping. When your order amount reaches $129, you can also enjoy free shipping for Express Shipping. So you don’t need to pay a lot to have your order shipped. This might be different when you shop on another marketplace. Sellers there set a low price for their products but charge a higher shipping fee.
7. Benefits from its sister company “Pinduoduo”
Temu is the sister company of Pinduoduo, which is also owned by PDD Holdings. Pinduoduo has operated for more than a decade. It has built a good relationship with a vast network of manufacturers and wholesalers in China. With the resources provided by Pinduoduo, Temu can get better prices from its suppliers. This gives Temu an edge on pricing as well.
Is Temu legit and safe to order from?
It’s tempting to connect a very low price with a scam. Yet, Temu is legit and safe to use mostly.
Temu is a legitimate online marketplace where third-party suppliers sell. When you place an order, the seller prepares the order and Temu lets it shipped by their logistics partners. To protect buyers from scams, Temu enforces stringent rules that sellers must follow within this marketplace.
Temu also launched the Purchase Protection Program to ensure safe transactions. Within 90 days of purchase, you can request a refund and get your money back if you encounter the following problems.
- The item is not as described on the detail page or displayed in the photos
- The item arrives late, damaged, or doesn’t arrive
What is worth noting is that Temu only serves as an intermediary between buyers and sellers. This company doesn’t produce or manage products. What you finally get with your money largely depends on the seller you deal with. Most sellers are reputable and reliable but some may not. Scams can still occur if you come across an undependable seller.
Tips to buy from Temu safely
Almost everything on Temu is cheap. Though the price does not necessarily suggest a scam, you still need to exercise caution when you buy something on this shopping platform.
Here are some effective tips to help you stay safe when shopping.
1. Read the product description before the purchase
It can save time to make a purchase decision after you see the title or photos. But you are taking a risk if you don’t read the description on the detail page.
The product description can offer more information about the product, such as its specifications, features, how-to guide, and refund & return policy. Unreliable sellers often play tricks on you with titles or photos. If you read the description, you may find that the product is not totally as the title depicts or the photo displays.
2. Check the seller rating and company profile
The seller rating provides insights into the seller’s services and product quality. A rating of 4.5 or higher out of 5 suggests this seller is most likely dependable.
Except for the seller rating, the company profile can also be a sign of whether you should work with this seller. Reliable sellers usually share these metrics.
- Have badges like “Best Seller” alongside the product
- With hundreds of followers and repeat customers
- With more than 100 transactions already
- Over 3 years of experience in the industry(Assess them if this info is not provided)
3. Check product reviews
You can get more details about the item and the shopping experience from previous buyers. Some sellers claim they sell the best items at a low price. But their items might not be the same as described or their service sucks. This is where product reviews come in.
Product reviews give you a clue about what the product really looks like and how the seller’s service is. However, take negative reviews with a grain of salt. After all, not all reviews are honest. Just be sure to leave a page where you find most customers are not happy with their shopping experience.
4. Understand Temu’s refund and return policy
Temu allows you to return an item that you are not satisfied with within 90 days of the purchase. After you submit the return request, you need to print the return label and send your package to Temu within 14 days. First returns for every order are free of charge. But there are some types of items that cannot be returned. They are included as follows.
- Clothing items that are worn, washed, damaged, with tags, packaging, or hygiene sticker removed or in an incomplete set
- Items that are labeled as non-refundable
- Free gifts
For refunds of the returned items, Temu will process your refunds after they receive the items and confirm they are in good condition. The refunds will be given back to you within 5-14 business days mostly.
Before a purchase, be clear about the refund and return policy regarding the product. If a seller lies in these aspects, you will know it immediately.
5. Check the product carefully upon delivery
One effective tip to avoid scams on Temu is to check your item upon delivery. Once your package arrives, take some time to check the product carefully. Check for any damages, defects, or discrepancies in size, color, or specifications. If you are not satisfied with the item, contact the seller in time and look for a reasonable solution.
6. Don’t make deals with a seller outside Temu
Some sellers may ask you to make deals with them outside of Temu. Don’t do that whatever they say. Instead, always stick to this platform to complete your order.
Temu only protects your transactions and handles disputes within their website or app. Reliable sellers won’t ask you to do business with them privately. Avoid engaging with sellers who try to take the transaction off-site or ask for personal information via email or other communication channels.
1. Is Temu a legit company?
Temu is a legit company owned by PDD Holdings. Like other marketplaces, Temu operates as an intermediary between buyers and sellers. Most sellers are reliable while some may not. This is why scams occur in some cases. To buy from Temu safely, you should understand Temu’s Buyer Protection Policy and keep our tips in mind.
2. Why is the stuff on Temu so cheap?
Stuff on Temu is so cheap for several factors. Firstly, most products are shipped from China where production material and labor costs are lower than in Western countries. Additionally, Temu connects buyers directly with the manufacturers and suppliers, eliminating multiple middlemen. Another reason is that Temu benefits from the resources provided by its sister company Pinduoduo. Pinduoduo has had close connections with a vast network of suppliers. This allows Temu to get better prices from these suppliers.
3. Are Temu products good?
The majority of products on Temu are of good quality or beyond. So people go after Temu products and sing praises of them on their social platforms. However, there are still low-quality products like those you come across on AliExpress or other marketplaces. You need to check the product description and reviews before the purchase. Buy a sample to check if the item meets your expectations if you plan to place a big order.
4. Where does Temu get its products from?
Temu is based in Boston, US. But most products on this platform are shipped from China. This is a key factor for the affordability of Temu goods.
5. How to get free stuff on Temu?
Temu offers free items as a way to attract customers. You can get free stuff through these methods.
- Register a new account
- Play games on the Temu website or app
- Refer Temu to your family, friends, or acquaintance
- Apply a coupon code you get
- Collaborate with Temu as an influencer
6. Why is Temu so cheap compared to Amazon?
Temu is cheaper than Amazon for several reasons. One reason is the difference in business models. Temu serves as a marketplace connecting buyers directly with sellers, while Amazon sells products directly and also offers a fulfillment service. This difference can affect their pricing strategy. In addition, as mentioned earlier, most products on Temu come from Chinese manufacturers and suppliers. These goods have lower production costs.
Temu is so cheap due to multiple factors. The basic factor is that Temu operates as a marketplace that connects buyers directly to China suppliers. Additionally, Temu takes pricing low as a strategy to compete with other marketplaces in the US market. Resources from its sister company Pinduoduo also give Temu an edge on pricing.
The extremely low price doesn’t necessarily mean a scam. But scams may still occur when you come across unreliable sellers. So remember to apply the effective tips we provide when you buy from Temu.
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