Temu Appeals to Savvy Shoppers With Affordable, Quality Merchandise

Temu turned one in September. In just 12 months, this hitherto unknown app has become one of the go-to places for shoppers who want to get the most bang for their buck.  

From its headquarters in Boston, Temu has expanded to Canada and Mexico, ships to most of Europe, as well as Australia and New Zealand. The online marketplace began selling to customers in Japan and South Korea in July.  

Many consumers came to know of Temu from its Super Bowl commercial “Shop Like A Billionaire,” which has been viewed more than 600 million times on YouTube. Temu remains the most popular app by downloads in most of the markets it operates in, with an estimated 142 million in cumulative downloads through July, according to Apptopia. It recently overtook Etsy in terms of public awareness, according to Google Trends, which analyzes online keyword searches.  

“Temu is executing faster than we can write stuff down,” Robin Zhu, an analyst at Sanford C. Bernstein & Co. wrote in a note dated Aug. 9.  

Wide Selection, Low Prices  

Fans of Temu often cite the combination of variety and price as the key reasons why they keep returning to shop at the online marketplace. The platform caters to customers from all walks of life, whether it is a teenager shopping for what to wear to the prom, or retirees buying gifts for their grandchildren.  

Products on Temu’s app and website are organized into 30 major categories, which range from clothes to homeware to power drills and pet food. This vast selection of merchandise has earned it the moniker of an “online superstore” and also means there is a good chance that one can find whatever one needs on the platform.  

Many consumers have shared that they have bought items from Temu that they did not even know they wanted, but were instantly captivated once they saw them while browsing the app or site. Or as the Liverpool Echo put it, Temu is like the “online Aladdin’s Cave of Wonders.”  

“It’s very easy to shop and it’s quite easy to do it in a faultless way as well,” said Neil Saunders, managing director, GlobalData Retail. “You’re not spending hundreds and thousands of dollars on things. The individual price points are pretty low.”  

To be sure, Temu’s stratospheric growth has attracted more scrutiny of its business practices, including how it can get prices down so low. The short answer is that Temu is bypassing the middlemen and their markups by connecting consumers directly to factories and wholesalers for more savings. As a newcomer to the e-commerce industry, Temu is also investing heavily to win over consumers by promoting hard-to-resist deals, which also explains the ultralow prices.  

Lowering Barriers 

By lowering the financial barriers with its low prices, Temu has become a firm favorite among many consumers for increasing their access and empowering them to take part in many activities.  

In Australia, fans of Taylor Swift turned to Temu for bead-making kits when their local Spotlight crafts outlet ran out of the supplies needed to make friendship bracelets. A fishing YouTuber set a personal record in Texas, reeling in a 12-pound bass using a reel purchased from Temu. Dedicated school teachers have also been shopping for cheap supplies on Temu to equip their classroom, with many sharing their “Temu haul” of building blocks, puzzles and teaching aids on social media. 

With prices that are on average 30% to 50% lower than other e-commerce sites and retailers, even small business owners have come to buy their supplies from Temu to save on overheads. For example, florists have taken to TikTok to share their finds on Temu, including wrapping paper, stickers, fasteners, and plush toys. Many artisans, including candle makers and bakers, have bought silicon molds from Temu for their businesses. A pop-up dinner and personal chef told the Los Angeles Times that she was buying catering supplies from Temu because they were much cheaper than she could get elsewhere.  

The savings and variety of choice made a convert out of Rick Herritt, who gave a five-star review of Temu on TrustPilot. The resident of Halifax, Canada purchased a new backpack from Temu for only $4.08, far lower than the available choices in his hometown. To his astonishment, the quality of the backpack from Temu surpassed that of his previous one.  

Encouraged by this positive experience, Rick placed an order for sneakers and shoes on the site. He hopes that these items will match the quality of the backpack he bought.