Temu (pronounced as “tee-moo”) is an online marketplace showing rapid growth. It is currently said to rival SHEIN and AliExpress.
Awareness exploded as they bombarded the internet with their ads. Temu launched in Australia and New Zealand in early March 2023 without prior notice. This launch was a part of their global expansion. Following their initial launch in the US and Canada in September 2022.
If you have never heard of it, not to worry. This blog will catch you up on this new online marketplace that emerged like a shooting star.
Temu: an Online Marketplace
Besides its bright-orange brand colour, Temu is characterised by three main aspects. A wide range of products, unbelievably low prices, and heavy gamification feature on its platform.
Wide Range of Products
Like Amazon, Temu sells almost anything- from clothing to cleaning goods, you name them! They even cover some niche areas, such as mechanical keycaps and dice for table role-playing games. You can also find many convenient gadgets for the household. Many are recently showcased throughout many short-formed videos on social media.
Unbelievably Low Prices
Their wide coverage of product types is already surprising, but here’s what makes Temu even more attractive. Most products you find on Temu will cost less than $15. This includes branded electronics like Lenovo wireless earplugs. If you look up Lenovo’s product line on its official website, you can find that the cheapest product will still cost around $45. A branded wireless earplug sold at less than 50% of its original price? It seems too good to be true, but we’ll get to that topic of authenticity a bit later.
Heavy Gamification Features
The last factor that characterises Temu is the large number of gamified offers. You’ll see many popups as you navigate through its app version. For example, Temu will ask you to send referrals to your friends for a chance to win a free product. They also have popups of mini-games, where you can collect tokens for a future discount. Besides these, you will also see many countdown clocks on its platform. The clocks try to push you into purchasing products with limited discounts and free shipping. If free shipping piques your interest, be aware that this is a part of their launch campaign. It’s not clear whether they’ll continue to provide unconditional free shipping after the timer ends, so we’ll have to see later.
How fast is Temu growing?
It’s been less than a year since this new online marketplace emerged, but it’s showing some huge numbers. Temu has a phone application version and a website platform version. The app version has hit more than 50 million installs (just by looking at Google Play). Meanwhile, the website version is getting about 280,000 hits per month, according to the AFR.
Now, let’s quickly compare it to some other popular online marketplaces.
- Amazon’s app hit over 500 million installs, and its website gets 45 million hits per month.
- eBay’s app has over 100 million installs, and its website gets 12 million monthly active users.
- SHEIN’s app has over 100 million installs.
- AliExpress’s app hit over 500 million installs, and its website gets 450 million visits per month.
- Catch.com’s website gets 8 million hits per month.
Temu is not there yet. But, if you consider that it reached these numbers within approximately a year- that’s some rapid growth.
Many platforms mentioned above are popular in Australia, which might cause slow growth for Temu. According to Power Retail’s Trajectory Report #64, as of March 2023, Amazon is still the most popular online marketplace among Australian consumers at 56%, followed by eBay AU at 52%. Also, Australia-based merchants remain the most popular marketplaces with 73% of consumers saying they prefer to shop local. Since Temu is not local, that could slow its growth even more.
What’s the reason behind Temu’s rapid growth?
As mentioned earlier, Temu has flooded the internet with its advertisements. It even released a Super Bowl ad on television, immediately getting the attention of the masses. Even if you look at the 30-second ad alone, it cost at least $10 million! How did this new platform get the funds to release so many advertisements? Well, you can tell once you know that Temu is a sister platform to Pinduoduo.
Pinduoduo is a popular social ecommerce platform in China, owned and run by PDD Holdings. It started in 2015, originally focusing on the traditional agriculture industry. It connects farmers directly with consumers. In 2021, Pinduoduo generated nearly $560 billion in gross merchandise value and is now one of the world’s top 10 retailers. Also considering their 7 years of experience, you can tell why Temu’s release was so smooth. They had access to the resources and connections required to boost their release. Creating many ads, building a platform that works, and preparing a wide product selection.
So, while Temu says that it’s based in Boston, America, it’s actually from a company originating in China. Why did they place the headquarters in America? It’s likely due to get the benefit of low corporate tax rates and perhaps to bypass the US’s scrutiny of China-based apps. Their plan seemed to work, as the Temu app is still available in the US application stores.
Does that mean Temu is the Real Deal?
Starting from the conclusion, yes, it is the real deal. It sells products and sends them like a regular ecommerce marketplace. Many people say that the application has a user-friendly design. Temu has a 4.5 rating (13,245 reviews) on Apple App. On Google Play, it’s 4.7 (533k reviews). So, it looks good at first glance.
However, the written reviews show a mixed opinion towards Temu’s product and service quality. More recently, Temu seems to be building a reputation for undelivered packages, sudden charges, incorrect orders, and unresponsive customer support. Let’s look at what we know about Temu’s services for now.
Products
Some say the product quality was terrible, and some say the product quality was superb. There’s a possibility that the positive reviews were sponsored reviews, so who knows what to believe? The most balanced reviews are the reviews saying it’s fair if you consider the price. It is like getting something at the $2 shop, it might do the job, and that’s it. So, if that’s okay with you, you can give it a go.
Another aspect to take note of is that Temu sells cheaper or fake versions of brands. It also means it’s stealing IP, and some smaller business owners are not happy about this. Anyhow, you can imagine the quality of fake versions, right?
If you want high-quality products from Temu, try ordering Chinese-brand products like Xiaomi, Huawei and Lenovo. You will likely get the real thing, considering that Temu’s parent corporate originates from China. Especially for Lenovo products, make sure you buy a product with a blue verification badge. It should also say, “Direct from Lenovo”.
Shipping
The shipping experience also vastly differs depending on the person. Some say it took very long, and some say it was faster than they thought. Users say an ‘urge shipment’ button is on the app, but it’s likely just a part of Temu’s gamification scheme and doesn’t have any effect. For those who did get their order, overall, shipping seems to take an average of 10 days. The time given is within the timeframe that Temu presents, 7-15 business days. But it isn’t if you look at its express shipping timeframe of 1-3 business days.
Why did everyone experience a different shipping speed? It seems the fulfilment process is the one that takes up time. Temu has written that order processing can take 1-3 business days. But it doesn’t seem to be the case. Because fulfilment takes time, people won’t be able to see any tracking until Temu ships the order out. It makes it feel like it takes longer.
At least Temu has a shipping policy: if an order is not shipped within 15 days, it will issue a refund. Any transaction from Temu will usually be made within 5 minutes. You can also choose to receive Temu credits instead, which will be instantaneously provided. It could take 5-14 business days for the refund to be reflected in your deposit, depending on your financial institution. At the longest, it could take up to 30 business days.
On the other hand, Temu’s packaging method seems to be convenient. Instead of separately sending products, Temu combines your order products into one parcel. That way, you won’t have to wait for many packages. As long as your orders get fulfilled, it’s likely that you will get your orders in due time.
The only problem with packaging is that the products get shipped in a bag instead of a box. It means if you order anything fragile, it will get damaged at a high possibility.
Offers
Remember that Temu has lots of gamification? Almost everyone says that the promotions are all a scam. There are few reports of getting gifts or discounts. Some people say referrals also don’t gift you with anything. Once you realise that, the popups get annoying with their frequent appearance.
Temu’s free shipping campaign is also a bit iffy. It promotes free shipping as if there are no prerequisites. But later, it shows a $20 minimum spend to get free shipping. There are more cases of sudden costs in Temu. People have seen pricing for a product changing between pages. It would be shocking, especially when you realise the changes when you’re about to checkout.
Returns
Now, let’s look at Temu’s returns process. Temu accepts returns with free shipping within 90 days of purchase. The timeframe is longer than the average for other platforms. One thing you need to be aware of is that it is from the day of purchase. Not from the day of receiving your order. Your return has to be postmarked within 14 days after you submit your return. Otherwise, your return will be terminated and you won’t get your refund.
Refunds for returns work similarly to what was mentioned in the shipping section. The only difference is that Temu will start processing your refund after they receive the return and inspect the products.
So, should I use Temu?
Researching Temu has resulted in finding more negative descriptions than positive ones. However, Temu is still highly rated. Besides sponsored reviews, it could be the case where negative reviews are heard more than the supportive voices behind the stars.
Either way, Temu is indeed a real online marketplace. It’s supported by a parent corporate from China, loaded with experience in the ecommerce field. If you’re patient enough to explore Temu for cheap shopping, it shouldn’t hurt. Again, it would be safer to think it’s an online $2 shop.
It’s probably good to read the prices and policies carefully and don’t order fragile items.