Temu’s Bargain Prices Help Consumers Save On Household Shopping Lists
Temu has quickly become a household name in bargain shopping, attracting millions of consumers with its headline-grabbing discounts.
The e-commerce marketplace was founded in September 2022 and is headquartered in Boston. Temu has attributed its popularity to meeting the unmet needs of consumers for affordably priced quality goods. It reportedly connects consumers directly to manufacturers or wholesalers, skipping the middlemen for the savings.
The company’s vibrant orange packaging has also become an increasingly common sight in delivery vans and on doorsteps, leading to one mailman complaining about being “Temu tired” from the deluge of orders. Total installs of the app have surpassed 100 million globally, according to data compiled by SensorTower.
Since its launch, Temu has experienced rapid growth and now offers merchandise in over 250 product categories. The platform has expanded its services to over 25 markets worldwide, including the US, Canada, France, Germany, Italy, Japan, Netherlands, Sweden, Switzerland, and the UK.
Customer response
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Customers have generally responded positively to Temu, praising its low prices and extensive product selection. Where there are complaints, it is generally about slower delivery times and damage to the parcels.
“I was more impressed with the products I tried from Temu than I thought I’d be,” said Jada Jones, an associate editor with ZDNet, who purchased four brand-name electronics products from Temu to try. “I was surprised to see reputable brands like HP and Lenovo on Temu, and I’d suggest spending a little more money on their electronics than the much cheaper options you’ll come across.”
In addition to competitive pricing, Temu also bucks industry trends in a number of other ways. Unlike many retailers, Temu provides customers with a generous 90-day return window, allowing ample time for refunds and against the trend toward tighter return policies.
Additionally, Temu does not charge for return shipping. The company also provides free standard shipping for most purchases, and its minimum order threshold is also among the lowest in the industry.
Temu’s challenges
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However, Temu is not without challenges. One perennial challenge it faces is how to balance speed of delivery with costs. The platform takes a week to two weeks to deliver parcels, compared with the two-day delivery promised by platforms such as Amazon for its Prime service subscribers.
As the platform grows, Temu must also ensure it can meet increasing demand and maintain high-quality customer service. Additionally, with its global presence, Temu has to navigate various regulations, customs, and logistics challenges in each country it operates.
Despite these challenges, Temu has continued to grow rapidly. Commentators seeking to explain its stratospheric growth rates point to its aggressive marketing, access to an established merchant base and mature supply chain. It is also benefiting from the trend of “trading down” and shoppers trying to get more value out of their budgets.
“Temu is successfully generating chatter as it attempts to position itself as a disruptor in the US e-commerce market,” Deborah Weinswig, New York-based CEO and founder of Coresight Research, said in a research note. “The launch of the marketplace comes at an opportune moment as consumers search for value amid still-elevated inflation and a degree of economic uncertainty.”
McClatchy newsroom and editorial staff were not involved in the creation of this content.
