Many business owners can’t move past the question, “Why is Temu so cheap?”
They think the platform is a scam or fake. But, there are legitimate reasons why Temu holds the TOP SPOT as the cheapest marketplace.
Our best procurement experts crafted this one-stop explanation about Temu’s prices. The key reasons are loss Leader Strategy, Cheap Materials, and Labor Costs. You’ll find the best deals on Temu with our guide.
Ready to hunt the CHEAPEST PRODUCT in Temu!
Why Is Temu So Cheap?
Temu has a reputation for offering products at incredibly low prices. These deals may seem too good to be accurate, but there’s a reason for the madness. So allow me to introduce them to you one by one.
1. Embracing the “Loss Leader” Strategy
Temu’s rock-bottom prices are all because of their clever use of the “loss leader” strategy. What does this mean?
The company doesn’t mind sacrificing immediate profits to give you AMAZING DEALS. The idea is to ATTRACT MORE CONSUMERS and build a SOLID REPUTATION. They team up with its sister company, Pinduoduo Inc. So, even though Temu may not be raking in money right away. The platform focuses on winning your trust and offering you the best deals.
2. Marketplace, Not a Retailer
When you buy from malls, EVERY product goes through a distributorship model. This means goods move from suppliers to the distributors and then to the consumers.
This process ACCUMULATES tons of added costs. Including expenses spent on the actual distribution process. And the PRICE MARKUP traditional retailers put in to make a profit.
Temu BYPASSES this traditional distributor model. It’s a marketplace that connects suppliers straight to consumers. Eliminating all costs associated with having a middleman.
You enjoy cheaper costs for every sale.
3. Deep Discounts
Temu overflows with DISCOUNTS all year long. And this is a very successful strategy for ATTRACTING consumers.
The APP offers to lose profits. So, customers fill their carts to the brim. Fewer profits but HIGHER sales still give the platform GOOD REVENUE.
Discounts in the platform are AVAILABLE for all users. Including first-time buyers but even more so for REPEAT CUSTOMERS. You GET CHEAPER price the second time you purchase from TEMU.
4. The De Minimis Loophole
It’s NO SECRET that Temu doesn’t have the best quality products. Temu itself and the Better Business Bureau know this. Which is why it NEEDS to avoid inspections at the border. Especially for products sent to Temu’s American consumers.
How does Temu avoid inspections and SKIP paying for additional taxes?
EASY. We found out that Temu makes sure little to no orders have a TOTAL VALUE of over $800. Shipments worth less than this have an automatic NO-INSPECTION pass at the U.S. border.
Of course, Temu only skips the hassle of inspections if it sells every product CHEAPLY.
5. Unbranded Products
You know how they say:
“You’re not only paying for a product. You’re paying for its brand name.”
Well, surprise, surprise: TEMU never sells branded names. Only UNBRANDED products, knockoffs, or items of companies that are not so popular.
You get DIRECT ACCESS to products straight from factories. Without expenses from extra labor, branding, and packaging from a company.
6. Cheap Materials and Labor Costs
MOST Temu suppliers are in China. The kingdom of the cheapest raw materials, labor, and manufacturing worldwide. Compared to products made in the U.S. or Canada. Items from China are up to 90% cheaper!
All thanks to China’s budget-wise manufacturing process. Temu sellers price items up to 5 times cheaper than their competitors in the market.
Is Temu Good to Use?
Yes, Temu is entirely safe to use and a LEGIT APP. To help you steer clear of the rumors about this app. I curated below the good reasons why you should TRUST AND USE Temu.
- Reputable Logistics and Payment Providers
Temu works with trusted delivery and payment companies. When you order something, you TRACK it directly on the app. Information about the logistics company handling your package is also PROVIDED.
And expect your PAYMENT DETAILS to be well-secured in Temu. When buying products, you have options like PayPal, Google Play, and Apple Pay. Plus, they have a Purchase Protection Program. So, if your order isn’t right, damaged, or doesn’t show up. Guarantee you’ll get your MONEY BACK and avoid LOSING MONEY.
- Delivery Guarantee and Extended Returns
Temu doesn’t play around with their delivery and returns policy as well. They promise to get your stuff in a SET TIME FRAME. And they’re crystal clear when you expect your goodies to arrive.
And here’s the kicker. Temu offers you an impressive 90-day window if you ever change your mind. Don’t worry, you can return MOST THINGS. The good thing is that all the details are available on their website. Check them out if you’ve got questions in mind.
- Stringent Seller Standards
Seller on Temu also underwent rigorous assessment. Ensuring every product they sell on the platform is of the HIGHEST quality.
Sellers need to abide by these rules, or else Temu kicks them out. That means you only deal with trusted sellers who meet Temu’s high standards. YOU AVOID low-quality products, saving your brand from reputational damage.
Suggested reading: How To Buy From Temu
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People Also Ask about Why Is Temu So Cheap
Can you trust Temu with PayPal?
Yes! The app has the most trusted payment methods, including PayPal. And aside from the convenience it brings to your purchases. PayPal is known for its buyers’ protection policies. Making it a RELIABLE CHOICE for all your online transactions in Temu.
How to tell if a seller is a good seller?
Run through their ratings and reviews. The reviews show how previous consumers have RATED THEM. Additionally, I recommend taking a look at the seller’s sales history. A consistent record of successful sales is often a GOOD INDICATOR of reliability.
What product is the best to sell?
Clothes, fashion items, and accessories are absolute hotcakes on the app. These items fly off our shelves every month. So, if you’ve GOT A KNACK for these niches, these products are your ticket to success in Temu.
Temu is owned by PDD Holdings Inc. and is known for its super-affordable price. One good reason is by offering unbranded products. Avoiding additional expenses tied to branding and packaging. WINNING customer budget-friendly goods.
Ready to find the cheapest items in the app?
Contact Leeline. Our procurement agents find you the lowest products. Expand your market share with TOP-NOTCH products.
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