What is it Temu ?
Temu is an online shopping megastore that offers almost every product you can imagine. You can buy accessories for cars, clothes, kitchen appliances, electronics, outdoor furniture, power tools, baby clothes and everything in between.
Temu’s parent company is PDD Holdings, a multinational trading group headquartered in Dublin, Ireland. PDD Holdings owns Tema and its sister company Pinduoduo.
It is not easy to pinpoint Temu’s origins. At noon of the SEC 6-K dated February 2023, Pinduoduo changed its name to PDD Holdings in a special resolution. The company also moved its main executive offices from Shanghai, China to Dublin, Ireland.
But the company—the U.S. offshoot of Chinese e-commerce giant Pinduoduo—is also developing a reputation for undelivered packages, mysterious charges, wrong orders and unresponsive customer service starts. Temu has already been the subject of more than 30 complaints to the Better Business Bureau and has a BBB customer rating of less than 1.5 stars.
Temu has been a very popular platform for buying various things for some time, people mostly choose cheap small things, not such as technology, phones, tablets, PC…etc. because of lower quality and lack of trust. Temu does business by giving free or very cheap shipping, but for high prices shipping is quite expensive.
Pinduoduo launched Temu in September to court the US market, and Temu’s website lists an office in downtown Boston. A spokesperson for Temu responded to TIME’s question with a statement from its website: that the company’s pricing is enabled by “a deep network of merchants, logistics partners and [Pinduodu’s] established ecosystem built over years.”
If we look at the prices and compare them with other shopping platforms, we see that Temu is not as cheap as said at the beginning, some even say it is more expensive than AliExpress, however Ali Express has very expensive shipping for very cheap items.
The theme has spent more than three billion dollars on marketing, it understandably has a lot of competition, in the form of other Chinese platforms and American giants such as Amazon, Walmart, Target, eBay… it launched an aggressive campaign using huge amounts of money on marketing and incredibly low competitive prices have entered the world of e-commerce.
Temu in controversies and conspiracy theories
There are controversies and conspiracy theories surrounding Temu, namely in America, people increasingly doubt the quality of Temu’s products, they are worried about the rather low prices, and some say that Temu withdrew money from their card without their knowledge, without them having bought anything, but most people say it’s all a lie and that the stories come from competitors who are losing the market.
The US government accused Tema of potential data risks after Google suspended its sister website, e-commerce platform Pinduoduo, for containing malware. According to CNBC, analysts say that Temu is less of a threat and that the risks associated with Pinduodu are aimed at Chinese users.
Separately, the US House Committee on the Chinese Communist Party released a report that said Temu was not taking the necessary steps to ensure that products on the site complied with the Uyghur Forced Labor Law.
Shein and Temu, two Chinese low-cost e-commerce websites, are the target of a proposed investigation by the United States government for selling “lethal products to babies and young children.”
Two executives at the Consumer Product Safety Commission said in an open letter Wednesday that they want commission staff to investigate the two companies’ compliance with U.S. safety regulations.
Pointing to “recent media reports” that dangerous products marketed to children are easy to find on websites, CPSC Commissioners Peter Feldman and Douglas Dziak said they want to “better understand these companies, particularly their focus on low-value, direct-to-consumer “shipments
US looks to crack down on cheap shopping site Temu amid concerns of exploitation
The same report claims Temu is taking advantage of a loophole in US trade that allows companies to avoid paying tariffs and complying with US trade laws and regulations.
US Security Commissioners Call for Investigation of Shein, Temu
NEW YORK, Sept 4 (Reuters) – Two heads of the U.S. Consumer Product Safety Commission are urging the agency to investigate e-commerce sellers Shein and Tema after “deadly products for babies and toddlers” were sold on both websites, according to letter, which was published, opens a new tab on the agency’s website Tuesday.
CPSC Commissioners Peter Feldman and Douglas Dziak want the agency to assess how Singapore’s Shein, China’s Theme and other foreign-owned e-commerce platforms follow its rules, manage relationships with third-party sellers and represent imported products.
Temu is not accredited by the Better Business Bureau (BBB) and has an average rating of two and a half out of five stars. Many recent complaints about Tema on the BBB website said that items never arrived or took weeks or even months to arrive.
Since its inception, Temu has faced a large number of product quality complaints, employee exploitation, privacy violations, and producer ratings.
Some believe that Temu will be a short-lived company, others claim that it will survive on the market and become a serious player in the world of online commerce.
Hundreds of them staged a demonstration this week at an office linked to Temu in the southern Chinese city of Guangzhou. They protested, among other grievances, what they called “unfair” fines imposed on the company or withholding of payment for goods already sold. The protest, which peaked on Monday and largely dissipated by midweek, highlights the myriad challenges facing Temu, owned by Chinese e-commerce giant PDD ( PDD ), as it continues an ambitious and expensive global expansion.
Temu why it is and how it is cheap
Temu offers deep discounts on lots that are mostly shipped directly from Chinese factories or warehouses. Apart from its incredibly low prices, Temu can no doubt attribute its popularity to its strategy of giving freebies to users who promote the app on their social networks and get friends and family to sign up.
According to Temu, the items on the site are so cheap because the supply chain runs directly from the consumer to the seller. Without middlemen, Temu can reduce prices. However, the exclusive use of third parties raises questions about the ethics of Temu.
But the strategy makes sense when you realize that Temu is a “sister company” of Chinese e-commerce giant Pinduoduo, which has been offering similar deals in China for the past few years. Pinduoduo has achieved success in China selling deeply discounted products directly from customers to low-income customers, as well as agricultural products to farmers. The company, which now has a market capitalization of $102 billion, has seen its share price rise during a year in which rivals such as Alibaba have suffered severe blows.
No, right now Temu is a big real platform that offers a range of genuine products at a deep discount, from deep fryers to wireless Lenovo headphones ($8.98), computer keyboards ($15) to clothes ($1.69 for five pairs of socks). Users turning to Temu this month as a lifeline for holiday shopping amid the worst inflation in a generation have made it one of the fastest-growing platforms in the US.
Is Temu Legit ?
Is Temu legal? Everything you need to know before your first order
Before you buy from Temu, you may wonder if it is safe, if the items are genuine, or if the site will keep your data. These are frequently asked questions, so let’s unpack them.
It depends on your definition of “legit”. Yes, most of the products on Theme are real; you will receive them, and it takes about 10 days for them to arrive at your doorstep.However, any tech products you order from Temu are not branded unless they have a blue tick on their product list. You can buy items like laptops, smartphones and tablets, but they are from lesser-known manufacturers.
Many digital creators online frequently post items they have purchased on the site, and you may be wondering what the site is all about and need to do the same. According to statistics, Temu records more than 30 million new monthly downloads, making it the number one shopping app in the Apple App Store and Google Play Store.
Temu move to Dublin
As the U.S. government continues to scrutinise fashion companies’ operations in China, some are opting for the safer havens of Europe and U.K. to expand their operations. One of these companies is Temu, the Chinese e-commerce giant that has captured the attention of Gen Z and is quickly gaining on the heels of digital fast fashion competitor Shein.
Temu’s parent company, PDD Holdings, has recently relocated its headquarters from Shanghai to Dublin. PDD filed the change with the U.S. Securities and Exchange Commission last week, stating that its “principal executive offices” are now located in Dublin, Ireland.
Temu European Office Dublin Contact
Address: First Floor, 25 St Stephen’s Green, Dublin 2, D02 XF99, Ireland
Are the products on Temu of good quality ?
Many people are satisfied with their shopping theme on social media, especially on TikTok. From small gadgets and household items to clothes and shoes, Temu is one of TikTok’s popular obsessions.
I have tried Temu products and encountered minimal problems. Sure, some items are cheap, but that’s to be expected when you pay $1 or $3. The theme items are generally what you would expect.
Is Temu stealing or selling your data ?
All e-commerce apps collect data when you create an account and visit the app’s home page. This data may include your exact physical location, address, and device ID, as well as your search history, payment information, and contacts.
Some apps use this data to track you across apps and websites, to understand your performance and to target you with ads.
Some of this data is tied to your identity, and some is not — tied to the app you’re using. In recent years, people have become increasingly concerned about how their data is stored and are particularly wary of data storage through Chinese applications.
Mexican shoppers say Shein’s and Temu’s delivery partner is stealing their stuff
Former employees at third-party logistics company J&T Express say the high volume of packages from the two Chinese companies has become unmanageable.
Topic fast delivery and money back system after 90 days
Temu’s standard US shipping policy is free, but your items are not expected to ship within seven to 15 business days. Temu says that if your package never arrives or you were told it was delivered but it wasn’t, you should contact customer service within 90 days of purchase.
In the Balkans, there is a longer wait for delivery, while some say that the package arrived within 7 days, while with other customers they wait two or three weeks, sometimes even longer.
You have the option to choose ONE free return of one or more returnable items for EACH order! To avoid additional shipping costs and minimize the environmental impact of multiple returns, we suggest selecting the items you want to return together.
The return period for most items is 90 days. All eligible items can be returned within the return period in their original condition for a full refund.
What changes could Temu cause in the market and dropshipping
The topic can be caused by changes in our market, especially in the field of electronic commerce,increased competition will encourage local retailers to improve their offerings, lower prices and improve the customer experience in order to retain loyal customers,also, there may be adjustments in the logistics sector, as increasing the number of shipments will require more efficient processes and better organization. However,local platforms still have an advantage due to speed of delivery, security, local support and the possibility of possible product replacement. These factors are key for buyers who value speed and security more, which gives domestic players an advantage and a chance to maintain and strengthen their presence in the market.
Temu could significantly affect dropshipping business models,considering that Temu offers a large number of products at low prices to direct customers, that the room for profitability of dropshippers, who rely on similar products, can be reduced.Dropshippers will need to focus on differentiating their offering, specifically more or personalization, in order to remain competitive.
Geopolitical game America and Europe target China’s Temu and Shein with proposed import tariffs
The European Commission plans to abolish the threshold of 150 euros below which goods are exempt from customs duties
It is drawing up plans to impose tariffs on cheap goods bought from Chinese online retailers, including Tema, in a bid to stem the rise of what Brussels says are substandard goods coming from China.
Biden’s War on Temu is a Political War on Your Wallet
On September 13, the Biden administration announced a “Notice of Proposed Rulemaking” to “protect American consumers, workers, and businesses by addressing the significant increased abuse of the de minimis exemption.”
Five reasons why Temu is cheap
1. Temu’s business model
Temu is an e-commerce platform that offers a wide range of products at extremely low prices. The platform was launched in September 2022 by Pinduoduo (PDD), a Chinese e-commerce giant. PDD has a significant influence on the business model of Temuov, since the company is a sister company of PDD.
This relationship allows Tema to leverage PDD’s resources and expertise to keep costs low and offer products at discounted prices.
The e-commerce landscape is highly competitive, with many players fighting for market share. Temu’s strategy is to partner with manufacturers across China to keep production costs low.
This allows companies to offer products at prices that are lower than the competition. To further lower prices, Temu also uses a de minimis provision that allows imports under $800 to enter the US duty-free. This policy helps companies keep prices low and attract more customers.
Temu’s business model is designed to offer customers the lowest possible prices while maintaining quality. The marketing strategy includes a Super Bowl ad designed to increase brand awareness and attract more customers.
2. Low production costs
Temu manufactures its products in China, where production costs are significantly lower than in many Western countries. This advantage is primarily due to lower labor costs, which make up a significant share of production costs.
In addition, Temu works with a network of manufacturers across China to manufacture its products. This allows companies to take advantage of economies of scale and negotiate lower raw material prices and production costs.
3. Low shipping costs
One of the main reasons why Temu can offer such low prices is the low shipping costs. Temu uses Economy Small Package Shipping, which is a cheaper shipping method compared to traditional shipping methods.
This allows Tema to keep shipping costs low and pass the savings on to its customers.
Moreover, Temu has partnered with various logistics partners to further reduce its shipping costs. These partners help Tema consolidate shipments and optimize delivery routes, resulting in lower shipping costs.
Another factor that contributes to Temu’s low shipping costs is the free shipping policy. Temu offers free shipping on all orders, regardless of order value. This helps attract more customers and increases sales volume, which further reduces shipping costs.
4. Discounts and offers for consumers
If you are looking for a good deal, Temu is the right place. The company offers deep discounts on a wide range of products, including electronics, clothing and household items.
You can find lightning deals that last for a limited time, and be sure to check the website often to catch a great deal.
One of the reasons Temu can offer such low prices is that they have low or no shipping costs. They ship purchased items directly to consumers, allowing them to bypass tariffs and save money. This means you can enjoy even greater savings on your purchases.
In addition to the already low prices, Temu also offers occasional promotions and discounts. Watch for special offers during holidays and other events, as well as discounts for new customers.
5. Knockoff products
One of the main reasons why Temu can offer products at such low prices is their use of fake products. Temu sources its products from unbranded manufacturers across China, which allows them to significantly reduce costs.
This means that the products they sell are often not of the same quality as brand name products and may not last as long.
Although some customers have reported positive experiences with Temu products, it is important to note that the quality may not be consistent for all products. It is also worth noting that counterfeit products may be illegal and may infringe intellectual property rights.
If you want to buy clothes, electronics, furniture or jewelry, it is important to know that Temu products may not be of the same quality as brand name products. It’s also important to note that it’s hard to distinguish fake products from the real thing, which means you may not get what you paid for.
FAQ
How can Temu offer products at such low prices ?
Temu can offer products at such low prices for several reasons. First, they source their products directly from manufacturers in China, cutting out middlemen and reducing costs. Second, they do not spend money on branding or marketing, since their products are not branded. After all, they operate on a low profit margin model, which allows them to offer products at lower prices than most retailers.
What are the price differences between Temu and big retailers like Amazon ?
Temu’s prices are significantly lower than those of large retailers like Amazon due to their business model.
As mentioned earlier, Temu sources its products directly from manufacturers in China, cutting out middlemen and reducing costs. They also operate on a low profit margin model, which allows them to offer products at lower prices than most retailers. However, product quality may vary between Temu and large retailers.
Are there security issues when buying items from Temu ?
Concerns have been expressed about the safety of products sold on Tema.
Since their products are directly supplied by manufacturers in China, some products may not meet safety standards. It is important for consumers to research products before purchasing and to be aware of any safety issues.
What should consumers know about Temu’s ownership and ethical practices ?
At issue is a Chinese-owned company that has raised concerns about their ethical practices.
There have been reports of forced labor in China, which may worry some consumers. It is important for consumers to research a company’s ethical practices before making a purchase.
How does Temu protect customer data and privacy ?
Temu has established a privacy policy to protect user data and privacy.
They state that they collect personal data for the purpose of processing orders and improving their services. They also state that no part of user data is sold to third parties, unless required by law
After the TikTok investigation, Republicans call for an investigation into the topic of data practices,
House Republicans want answers from the FBI and other U.S. agencies about how the popular Chinese online marketplace Temu handles the data of American citizens.
What are the reasons behind the warnings some users have issued about Temu ?
Some users are issuing warnings about Temu due to concerns about the product’s quality and the company’s ethical practices.
Consumers should research the company before purchasing and be aware of all possible risks.
According to Wired, Temu is losing about $30 per order as the company tries to dominate the US market by offering lower-than-low prices. Temu loses between $588 million and $954 million a year due to its cost-cutting practices, according to financial firm China Merchants Securities.
In addition, Temu pressures its manufacturers to lower their prices even further to appease discount-seeking customers, leaving manufacturers with little or no profit. Wired reported that Temu bears most of the company’s international shipping costs, but relies on American consumers who frequently order from Temu to make up for the lost money.
Temu’s manufacturers can design and source material to supply Temu with fashionable items quickly, which helps Temu sell products that are in high demand. Although some manufacturers want to list their products at higher prices in order to make a profit, Temu makes the final decision and regularly lowers the prices.
One of the reasons why Temu is so cheap is that most of the products on Temu are not branded. If you’re looking for some popular brands, it’s hard to find them on the search results pages.
For unbranded products, sellers are not entitled to charge a premium for their unique brands. Therefore, these products are usually more cost-effective than branded products. Let’s take sports shirts for example. You can often see that a t-shirt from an unknown brand tends to be cheaper than another with the brand name “Nike”.
5. Heavy discounts on various products
The company has spent billions of dollars in US online advertising with social media companies like Meta, parent Facebook and Instagram, and Google. The investigation is warranted, critics say, because of anti-competitive practices that circumvent U.S. trade and public safety regulations; the alleged use of slave labor in order to sell products at discounted prices; and advertising aimed at children, low-income families, and older Americans.
The companies – Temu supported by the Chinese Communist Party – have been accused of offering direct-to-consumer products that often fail to meet U.S. safety standards at well below market value. Items listed for sale include beauty products for young women and girls for as little as a penny and children’s clothing for less than $10, well below the average price of direct-to-buy US retailers, which can be found on Amazon and other outlets.
Conclusion
Temu is slowly winning the top in e-sales and in the world, and if there are controversies about their business, quality of goods and many other things, the fact is that they provide fast and cheap delivery and cheap products. China and the West (America and Europe), so it is not surprising that the condemnations come from that center that is trying to suppress Chinese dominance in e-sales, and if it is only about online sales, the fight will last for dominance that is not as harmless as seems at first glance to ordinary customers.
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More information
https://www.cnbc.com/2023/05/17/temu-accused-of-data-risks-amid-tiktok-pinduoduo-fears.html
https://therecord.media/republicans-call-to-investigate-temu-china-tiktok
https://www.wired.com/story/temu-is-losing-millions-of-dollars-to-send-you-cheap-socks/
https://www.counterpunch.org/2024/09/25/bidens-war-on-temu-is-a-political-war-on-your-wallet/
https://www.fox5ny.com/news/us-cracks-down-temu-concerns-data-exploitation
https://restofworld.org/2024/shein-temu-mexico-delivery-jt-express/
https://uk.trustpilot.com/review/temu.com