What you should know about the Chinese-based Temu shopping app

The app Temu, a Chinese-owned online retailer, is generating buzz in the U.S. for its remarkably low prices. Comparable to giants like Amazon or Wish, Temu covers a vast array of products, ranging from toys and clothing to power tools and outdoor furniture — all at incredibly affordable prices. Sunglasses for $2, necklaces as low as $0.78, and power tools for less than $5 exemplify the platform’s cost-effectiveness.

Temu’s business model revolves around its Chinese origin, allowing it to manufacture products at a lower cost, translating into budget-friendly prices for consumers. An innovative marketing strategy, known as reverse marketing, sets Temu apart. Instead of spending heavily on marketing, the company identifies consumer-favorite products and communicates this demand to manufacturers, cutting out intermediary costs and providing customers with what they desire.

Despite launching in late 2022, Temu has quickly become the top free shopping app in the app store, surpassing established competitors like Amazon and Walmart. Offering free shipping to the U.S., the platform has gained popularity, although some users note that delivery times can be extended, taking up to two weeks or more.

However, amidst the excitement, skepticism lingers about the extremely low prices. While many users affirm the legitimacy of the app, caution is advised. Retail experts, such as Andrea Woroch, highlight the importance of considering the item’s quality when purchasing significantly discounted products. Temu’s rise signifies a shift in the e-commerce landscape, with consumers attracted to both affordability and a diverse range of products.