Online shopping has become so popular that even people who never would have thought to shop online are now finding themselves browsing items on their phones while they’re waiting in line at the grocery store or sitting on the train. According to a report published by Statista Research Department, the number of digital buyers in the United States is set to increase to a staggering 285 million online buyers by 2025. This means that nearly 90% of the entire U.S. population will be shopping online by 2025!
And as online marketplaces continue to multiply, they are driving this trend forward and spurring the growth of new ways to exchange goods and services. Now, with the launch of Temu, a new online shopping app, North American consumers have yet another option to shop anytime, anywhere from the comfort of their mobile phones. This blog post will explore what is Temu, how it works, and how it could make online shopping easier and more affordable.
What is Temu?
Temu, a US-based online shopping app, was launched in September 2022 to make online retail shopping easier, faster, and more fun for US consumers. The app has been downloaded over 4 million times since its launch, and it offers discounted prices on everything from clothing to home goods.
Temu’s mission is to reinvent the way Americans shop for fashion and home goods from their couch, by offering an easier experience with more convenience. Users can browse through different categories, see what’s trending and new arrivals, read product reviews by other shoppers, and then order directly from their phones.
The company’s mission statement is simple: “To provide a platform where consumers can easily discover, purchase, and receive goods.” Temu has built its business around this ethos by prioritizing ease of use, transparency, and a commitment to customer service. The website and mobile app are designed with simplicity in mind; users can search for products from thousands of vendors with just a few taps.
Temu is rapidly gaining ground on its eCommerce rivals
Temu is quickly becoming a household name in the eCommerce world with an impressive record of $1.5 million daily GMV, surpassing most expectations for a new player in the space. But Temu isn’t stopping there—the company plans to reach total sales of $30 billion in five years, a number that took its Chinese rival Shein 14 years to achieve.
This may come as a surprise to many observers, but it is not a mystery. The company’s success can be attributed to three factors: its affiliation with PDD Holdings, its ability to offer lower prices than competitors, and its effective marketing strategy.
A subsidiary of PDD holdings
Temu gets access to a network of sourcing, logistics, and fulfillment capabilities as part of PDD Holdings, a Chinese multinational commerce company listed on the NASDAQ with annual revenue of $14.7 billion and 61 billion processed orders in 2021 alone. Temu has the privilege of tapping into its Chinese parent company’s knowledge and resources and having access to substantial capital that allows it to expand operations quickly and efficiently. This can be especially important in today’s fast-moving marketplace, where consumers expect fast shipping and low prices from their online shopping experience.
Lower price structure
The pricing strategy sets Temu apart from other online retail platforms such as Amazon and eBay. For starters, the company has a “no-fuss” approach to pricing, as most items cost less than $20. Additionally, Temu offers free shipping and discounts of up to 90% on various product categories, including electronics, books, clothing and accessories, health & beauty products, home & garden products, and much more!
This may seem too good to be true for bargain hunters, who are wondering why is Temu so cheap, and how they manage to offer such low prices if they are legitimate and trustworthy. The answer lies in the fact that Temu is still very much in its early stages of development. This means that product pricing does not take into account the cost of marketing and shipping, nor does it make room for profits—all of which are covered by PDD holdings, the parent company.
This low-price strategy is not a long-term solution, but it has helped to get the company off the ground. The goal is to acquire as many new customers as possible by offering cheap products, big discounts, and free shipping. Eventually, when Temu has grown enough, its business model will change.
Extensive advertising and marketing campaigns
In September 2022, Temu kicked off its marketing campaign with $140 million in ad spending. Their marketing efforts are designed to appeal to users of all ages and demographics—from teens who use TikTok to adults who frequent FaceBook’s Marketplace or eBay’s auctions sections.
Temu also runs referral programs, allowing users to get a discount on their purchases if they invite friends to install the shopping app. In addition, Temu has run many other types of campaigns, such as sending out seasonal coupons to existing customers to promote new products or allowing users to participate in giveaway contests where they could win prizes by sharing their favorite products with others.
How does Temu work?
Temu is designed to be easy and intuitive to use so that new users can spend less time figuring out how to navigate the interface and more time shopping! It’s easy to sign up, and it’s possible to use Gmail, Facebook, Twitter, or Apple ID to log in. Once signed in, users can browse through the millions of items available on the platform—and contact sellers directly!
How to order products on Temu?
Shopping on the Temu app is a breeze. Whether buyers are using the mobile app or the website, they can check out in just a few simple steps.
Add products to the shopping cart
First, click the “Categories” link at the top of any page on the app or the website. This will bring the user to a list of all available product categories, like clothing and accessories, home decor, beauty products, and more.
Once an item is selected, buyers can choose its details on the right-hand side of the page—including size choices, color options, and quantity. Users can review their order details and click “Add to cart” to move to the next step.
Review the shopping cart
Once users have added the products they want to purchase, they can click “Go to cart” on the right-hand side of the popup window. They will see a summary of what they’ve added, and be able to review each item and make any necessary adjustments.
Move to checkout
If everything is all set, buyers can click “Checkout” to move on to a new page where they can enter their payment information and confirm their order. If the buyers have an account on Temu, they’ll be prompted to log in before checkout. Otherwise, they can sign up by using their email address, phone number, or a third-party account such as Facebook or Twitter.
Finalize the order
Once in the checkout stage, users will be prompted to fill in their shipping information, including the shipping address and shipping method. Buyers can select a free standard shipping option or upgrade to express delivery for a fixed fee. Now, users can apply their coupons, if available, and select a payment method from a range of options, including credit/debit card, PayPal, and Google Pay. Once the required fields are filled out, it’s time to review the order one more time and click “Submit order;” and then voila!
Where does Temu ship from?
While Temu is headquartered in Boston, Massachusetts, its products are manufactured, packaged, and shipped from China. This is because Temu wants to avoid the additional costs of middlemen and building warehouses in the United States. This strategy helps them keep costs low for consumers who are looking for affordable luxury items that they can afford without breaking the bank!
Temu emphasizes transparency throughout its shipment process. They ensure that customers are fully informed of every step of their order’s progress by providing detailed tracking information on their website and mobile app. Here’s a quick rundown of how to track orders on Temu:
Locate the orders
The first step is signing in to the Temu account. Once logged in, click “Account & Orders” in the top-right panel of the home page. From there, click on “Your Orders” from the drop-down menu.
View the order details
Once users have clicked on “Your orders,” a new page will open up automatically. This page shows all current orders. Buyers can look at any specific order by clicking “View order details.”
Track the order delivery
To start tracking the order, users can click “Track” on the right panel. This will prompt a new window to open with all the details about the order delivery, including shipping information, tracking numbers, and more.
Take advantage of Temu discounts and special deals
With over $1.6 trillion in online retail sales expected by 2027 in the US alone, there is a lot of room for growth with an online shopping app like Temu. With all the available special deals and discounts, small entrepreneurs and dropshippers can source everything from clothing and accessories to food and home goods at wholesale prices. Interested in learning more about online marketplaces? Check out this quick guide to understand the difference between Alibaba.com and AliExpress!