Temu is an e-commerce platform that has rapidly overtaken other apps as the most downloaded one in the US. It began operations in September 2022. It links consumers with independent sellers and provides a range of goods across 29 categories, including clothing and cosmetics, electronics, and appliances. The popularity of the app is attributed to its inexpensive goods. It offers price reductions of up to 90% on some items, making its products some of the cheapest in e-commerce.
Why is Temu so cheap?
Temu’s Next-Generation Manufacturing model accounts for its affordable pricing. By establishing a direct line of communication between businesses and consumers, this model cuts down on wasteful marketing and wasted inventory expenditures. It collaborates with brands and dealers to create items that meet demand and supply. Temu is able to pass on savings to customers in the form of lower-priced products by cutting production, marketing, and shipping costs.
Temu’s method does away with the necessity for pricey marketing tactics. It helps brands and sellers develop items suited to their target markets’ needs. The company’s low prices increase sales, which aids in learning about real demand and customer preferences. The company aims to reduce waste by only creating things when customers order. This method reduces inventory loss while minimizing overproduction’s negative environmental effects. Temu works with manufacturers who prioritize environmentally responsible practices, such as using renewable resources and reducing carbon emissions.
Temu had the eighth-most downloads of any shopping app in 2022 despite only being available for four months. The company’s web platform makes it easier for buyers and manufacturers to communicate directly, which lowers the price and length of time it takes to deliver an item once an order is placed. Despite the sharp price cut, retailers can still profit and attract additional buyers seeking bargains.