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Why Is Temu So Cheap

Why Is Temu So Cheap? Are Temu Products Good?

Why Is Temu So Cheap

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.

The Temu app ranks #1 on the 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.

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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.
Temu offers free shipping for all orders for Standard Shipping.

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?

Temu is so cheap. Is it safe?
Temu is so cheap. Is it safe?

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.

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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.

 

Is Temu Safe to Use?

Given the unbelievable prices, it’s hard to know whether you can trust Temu. We’ll break down the signals you should look out for to see why Temu is trustworthy and safe.

1. Temu collaborates with reputable logistics and payment providers 

In terms of logistics and payments, Temu collaborates with reputable providers to ensure that transactions are secure and deliveries are reliable. After you place an order, you’re able to track your delivery directly in the Temu app or website. There you’ll be able to see which logistics company will be delivering your package and exactly when you should expect it.

Additionally, when you are paying for your order on Temu, you can trust that your payment data will be safe and secure. All of the links on Temu’s website are PCI-certified – the highest level of payment link security you can have. If you still feel hesitant, you can also use a third-party payment provider such as Paypal, Google Pay, or Apple Pay to transact on Temu.

For your peace of mind, Temu also offers a Purchase Protection program, providing full refunds if an item doesn’t match its description, arrives damaged, or doesn’t arrive at all. So with this generous policy and Temu’s established partnerships with logistics and payment partners we trust, we conclude that Temu is a safe place to shop on.

2. Temu has an industry-leading delivery guarantee and extended returns window

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Temu guarantees delivery within a specified timeframe and offers an extended return window of 90 days. On each individual product page, you can also click on the shipping details to see what percentage of orders arrive within a specific time frame. This transparency is super helpful to manage your expectations of when you will have your products in hand.

After you receive your product, you have the option to return it within 90 days of the date of purchase. Most items are eligible to return and you can view their full details and step-by-step process on their website.

This policy is more generous than many other e-commerce platforms and demonstrates Temu’s commitment to customer satisfaction.

3. Temu enforces stringent standards on sellers

As for the sellers on Temu’s platform, they are held to stringent standards to ensure the quality of their products. Sellers who fail to meet these standards risk being removed from the platform, providing further reassurance to customers about the credibility and reliability of Temu.

The combination of low prices and decent quality appears to be resonating with consumers. Bloomberg reports that in May 2023, Temu outpaced Shein in terms of user count in the United States, recording over 100 million app users. The company has since launched a robust promotional campaign in the UK, Germany, France and elsewhere. Following this marketing push, these regions have witnessed a comparable surge in app downloads.

As of August, Temu is available in more than 35 countries, having entered Japan and South Korea in Asia and adding Slovenia and Estonia to its list of markets in Europe.

Conclusion

To sum up, Temu is real and safe to shop on. Its affordability is also no accident. It’s the result of a carefully designed business model that leverages technology to optimize the supply chain, connect consumers directly with manufacturers, and pass on the resulting cost savings to customers. Its commitment to customer satisfaction, secure transactions, and quality assurance make it a reliable platform for online shopping.

So the next time you’re looking for a bargain online, remember to compare prices on Temu. You might be surprised by what you find.

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