Why Temu May Not Be a Competitive Threat to Online Sellers

by: Nonesuch

Could be, though I suspect that there will continue to be a market for cheap crap, and that China will continue to supply that market.  After all, it is in China's interest to make products that don't last, so that gullible Americans keep buying them, over and over, thus contributing to China's prosperity.  The Chinese Communist Party depends on growth to stay in power.  They need the USA as a market.  Who else will buy their crap?  Shutting off the flow of goods from China, as some politicians have proposed, may hurt US consumers in the near term, but would be much worse for the China's communist rulers.  At some point, the U.S. will wise up.  

by: Xena

They've certainly affected my business. Why pay $15 for my item when they can get it from TEMU for 50c? Doesnt matter if it turns out to be fake....it looks sort of similar. And you win some you lose some - still in front in the end.  TEMU hit Australia in April last year, and since then my sales have been on a rapid decline, especially noticing it this year.
The other big thing (Australia, dont know about other countries) is that 50c item hits our shores and then travels to its destination, which would cost $3.00 if posted locally. So we are paying higher postage (stamps just went up 25%) to cover the cost of cheap rubbish flooding our nation.
The one thing i do not understand is why, with the amount of complaints, and problems with counterfeit products, is Paypal - who is suppose to be a [guide] as to whether an online business is trustworthy - is still a payment option for TEMU? I can only assume it has been very profitable for them :/  

by: Chicago48

ALL ITEMS THEY SELL ARE OF VERY POOR QUALITY, which is why they're able to offer very low prices, because that's all it's worth.
^^
I disagree.
I've bought several items from Temu and those same items are sold on Amazon.  You can go to any housewares section on Amazon, or electronics, and see items from manufacturers that also sell on TEMU.  Ditto WM.  
The difference between AMZ and temu is a) AMZ sells name brands like Nike, Lands End, et al.  and AMZ ships in 1-2 days.
I've also learned to buy a "cheap" item on TEMU and resell it on AMZ.  For example, eyebrown microblading brushes.  Buy on TEMU for (example) $1 and sell on AMZ for $10.

by: Flying Childers

Given the state of today's economy with most people struggling to make ends meet, I couldn't disagree more with Pamela.   Maybe she is not feeling the effects of "Bidenomics" or whatever they want to call our dismal situation, but prices for EVERYTHING have gone up like 25% in the past few years.

The dollar and discount stores where I live in NY are doing a booming business and that's what Temu is competing with as well as all the online stuff.

People are looking for a bargain and that's what Temu is offering.  Sure it's cheap crap but they are offering free delivery plus immediate refunds on defective goods.   I know what I'm buying, like cheap solar lights that maybe last a year, but at these prices, who cares?  

On the other hand, if I am looking for something nice and well made for myself or as a gift, there is NO WAY I am shopping at Temu.

Etsy can't be beat for quality once you get past all the resellers and phonies.

by: LasVagueness

100% agree with other readers that Temu is a HUGE threat to online sellers. The prices are ridiculously inexpensive, style and variety are insanely competitive, and the quality and longevity are comparable to other fast fashion on the market. Consumers want cheap and they are going to get cheap (along with millions of tons of microplastics polluting our water).  

by: Jim Y

Since TEMU is selling items so cheap and they have massive amounts of advertising going on and the labor and other overhead costs are going on, and their production costs may be only just covered by the sales, what is the next step?  My guess is that they will have to increase prices at the point where so many people are addicted to TEMU.  At that point they will become profitable.  Are they now?

by: Flying Childers

My guess is that Temu is enormously profitable.  Let's not forget that the Chinese do not have the same labor standards as Western countries nor do they pay anything close to a "minimum wage."

by: margo

I have bought some really nice things on Temu. I have a purse I bought from there and every time I use it I get many compliments. I do not find it true what Pamela said that everything Temu sells is of poor quality.I have bought a few things I did not like when I received them and I had no problems with customer service. I was refunded promptly. The lady was very nice.

by: Flying Childers

Margo- I have had the exact same experience.  I am still a shopaholic even at this age, and I have purchased some amazing items on Temu with free shipping and outstanding customer service.

The trick is to know what you're looking at when you shop there.  Realize that clothing can be pretty dicey- sizes run very small and fabric is often not good.  However, I have bought things for my grand kids that they love and the prices were amazingly cheap.

I have no loyalty to Amazon or American re-sellers who buy the same stuff on Temu and then mark it up  1000 percent.

by: River

I disagree with Pamela's blanket statement that all items are poor quality. I'm sure some items are, but there are many items that are exactly the same as you find at local and online retailers. I decided to give it shot and ordered supplies I use in my restoration work. What I received were exactly the same products I purchased on Amazon, from art supply stores, local retailers and other online suppliers who sell these items at much higher prices. I saved $60 and that doesn't include the shipping costs I would have paid from various retailers.

As for customer service, I had a great experience. When I contacted them about one item that was incorrect, they asked me to send a photograph and then immediately credited my Paypal account and told me to keep the mistake or donate it.

by: ScottLBrown

For me, the items I am purchasing are understood to be extremely low cost, one time use, and will likely break quickly.  Hell, I buy from Walmart - who buys from China - so what is the difference?   Oh, TEMU is cheaper.

With that said, I do see them taking a bite out of the sub $50.00 items on Amazon. I'm hoping that after the next president is sworn in, that he or she has the balls to get rid of the unfair advantage in USPS/China Post fees - and level the playing field.    That would likely put much of what TEMU sells out of the game.

IMHO,

by: UB

TEMU IS HURTING EBAY BAD AND OTHERS  NOW. SHEIN AS WELL IS BAD FOR USA SMALL BUSINESSES.

by: BargainzBabylon

I'm sorry, Pamela, but you're dreaming.

As for 'penny pinching' - money is going on experiences and travel, which is booming, and buying nickitty knacks is way down on people's lists of what they want to spend their money on - this is a big reason why TEMU does well.  

Also, their stuff is comparable to other Chinese tat.  

by: Jim Y

If Temu is a Chinese run company and it is getting so big that it over takes American commerce in some forms, Congress should step in to control it.  This is just another way the Chinese are trying to influence Americans.

by: toolguy

I've never bought from temu and never will.

My wife did once and I gave her the 3rd degree for doing so!

I only buy "made in china" when there is no other choice and I do it reluctantly

I'm kinda sad the .99 cent store is closing, they had a lot of products from Mexico and I believe in supporting our neighbor to the South.  

by: Opalie

I wonder how well Wish is doing these days now they're up against Temu for basically the same market demographics?

by: iheartjacksparrow

@Opalie: I'd never heard of Wish before, so I looked up their site. They seem to have slightly less cheapness than Temu, though I did wonder about the diamond ring for 96 cents.

by: LDWCallsOut

Wish has been around for a while and pretty much set the standard for selling with deceptive listings.  There used to be an overlap of Wish sellers and Etsy shops since both venues are okay with deceptive listing practices.  Dunno if there are any/many Wish sellers currently running Etsy shops.

by: toolguy

The "best" fake Benchmade knives can be bought on wish for $20

I have never bought off wish and never will, they're just an older form of temu

by: MilesT

It's been widely reported that Temu is subsidising postage and discounting prices to get scale in new western markets.  It's an unfortunately legal way of what used to be called "dumping" (which has typically been limited by "anti-dumping duties" assessed by customs inbound).  Clearly also exploiting customs "de-minimis" duty relief that most western counties have for "personal" imports, although recipient might still be liable for use tax (goods coming into the UK are still assessed 20% VAT which big marketplaces usually charge on invoice and prepay to UK tax authorities to ensure a smooth journey for the parcel)

Selected vendors from Temu's "in china" marketplace, PinDuoDuo (PDD) are invited to be part of Temu--vendor ship stock to a Temu warehouse, Temu fulfills and pays the vendor paid a price similar to what they would get if the sale was made on PDD (as a concession sale I think--back to back customer order to purchase order).  Temu sets whatever price and postage they see fit to make the sale, and apparently is often taking a loss overall (retail vs "cost" price and/or postage costs)