Temu has been considered a rising star since the PDD Group established it in the US. But how is Temu so cheap? Heres what you need to know.
Why Is Temu So Cheap?
Behind PDD Groups New Rising Star Temu is a name you may or may not be familiar with. Since being launched in September 2022, its become the most downloaded shopping application on the Google Play store, reached an average of $1.5 million daily in gross merchandise value (GMV), and completely shocked significant online marketplaces like Shein and Wish. They’ve created quite a stir in recent months. Temus success comes from its relationship to their sophisticated parent company, PDD Group (Nasdaq: PDD). Its a Nasdaq-listed multinational conglomerate that also operates Pinduoduo, one of the largest commerce companies. Because of Temus rapid growth, lets explore the PDD Group and how this relationship has aided the start-ups development.
Who is Temu?
The Temu app launched in September this year as PDD Groups first US venture. This brands motivation is to provide affordable, high-quality items without compromising lifestyle choices or comfort. As a result, all of their listed goods are reasonably priced, ranging from 80-cent earrings to $6 shoes.
What is their relationship with the PDD Groups?
PDD Group is a multinational business conglomerate that owns and operates Temu in the US and Pinduoduo in international markets. Since its creation in 2015, they’ve developed a wide network of global suppliers, pioneered Next Gen Manufacturing, and handled over 61 billion orders in 2021. Their revenue in 2021 was $14.7 billion. Because of their sourcing, supply chain, and logistics capabilities that they’ve developed over the years, they are able to share this expertise with Temu to bring high quality goods at wholesale prices to consumers. Even though the United States is a difficult market, Temu has embraced it with open arms, surprising competitors.
How is Temu so cheap?
Temu is an innovative, freshly created company that sells inexpensive items to US consumers. However, the generally low cost of the items has many people wondering how the Temu App is so affordable. The Temu platforms overall affordability stems from the sourcing and logistics capabilities they share with their parent company PDD Group. Because of their scale, they are able to sources a wide range of products at wholesale prices. More savings come when you include PDD Group’s existing supply chain and logistics technology. When combining all of the above, the outcome is low-cost and high quality items for consumers to choose from.
Is Temu safe
Temu is safe. Including its low costs, the Temu platform is becoming known as a high-quality marketplace. Even better, their pricing isnt the best part. The app offers great shipping prices and policies. For example:
● All items qualify for free standard shipping, while orders over $99 qualify for free express shipping.
● Any order thats considered late will receive a $5 credit.
● Return shipping is free, and full refunds are available within 90 days of purchase.
When these are present in any business, it screams trust And for Temu to succeed, thats exactly what they need.
Should you purchase from Temu?
If you can wait the longer delivery times, purchasing through Temu is recommended. Even though these are comparable to Shein delivery times, they still need to catch up to Amazon;s next-day service. However, delivery times are fast-improving and it still depends on how much money you want to spend since products on Temu are only a fraction of the cost of products on competitor sites like Amazon.
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Temu is a Chinese operation designed to upset commerce in the US. They are willing to take a loss on small products in an effort to hurt companies like Amazon and Walmart. While getting people addicted super cheap pricing that can be shut off at a moments notice. It is a dumping strategy that has been used in the steel industry and other commodities. Crush the US supplier until they go out of business then dominate the market.
makes sense. communist china is a genius in moving towards world dominance. china is buying up land (farmland) in the US also. they have already acquired major cities real estate, they own, ports banks, etc etc.. how dumb are we?!
Although, “hurting” Amazon and Walmart doesn’t really make me feel sad. Since these huge companies do almost the same thing to small mom and pop shops. They sell items made in China, at a cheaper cost. And faster deliveries. Making it harder for American handmade items to sell, turnaround times are longer and higher priced due to it being handmade (and typically much better quality). Evil vs. Evil. Meanwhile, the middle class gets hurt.
You are correct and our younger generations don’t have clue or care.
More Chinese junk to take down America, no thanks I will support American companies even though it costs a little more.
I first purchased from Temu in Jan 2023, with great expectation of China Fraud … a total of $2.99 plus free S/H ! Surprisingly, it came and with equal speed as American Marketplace sites, charging for S/H. Amazing S/H is PRIME and $59 and up !. eBay Chinese products with Free S/H take 2 weeks or more. Temu arrived in 1 week.
Shocked, I ordered a 2nd Order of 3 more cheap products for $29 total and Free S/H. These were more higher quality items, which I would purchased from US based direct online sellers of Sporting Goods and Firearm accessories like: Cabelas, Sportsmen Warehouse, etc. Well … it arrived again in 5-7 days and the quality of the goods were just as good as the US base online stores.
I’m staying away from electronics and hardware so far … cause Harbor Freight is still cheap but starting to raise prices. With few exceptions, High Value products are still good to buy from America suppliers. And like another commenter above, Walmart and Amazon have done the same to the American downtown cities retail markets and most rural towns. So my simpathy is very jaded.