Temu is able to offer low prices to US consumers by cutting out the middleman and allowing Chinese vendors to sell their products directly to US consumers, shipping directly from China rather than building out a network of US warehouses. Temu is owned by China's PDD Holdings Inc., which also owns Pinduoduo, a shopping platform with around 900 million users. Temu shares sourcing and logistics capabilities with PDD Group, which allows them to offer products at a fraction of the price. Temu's catalog includes off-brand items like baseball caps, makeup brushes, credit card holders, and iPhone cases. Temu ships internationally, which can take as long as 15 days to receive packages.
According to an article on PCMag, Temu's prices are indeed shockingly low. So low that they can’t help get your attention and cause you to throw things in your cart. The article explains that the short answer is that Temu reduces inefficiencies and removes hidden costs in manufacturing that consumers have no idea they are paying for. The article also explains that Temu’s prices are so low because it doesn’t have any physical stores or warehouses. Instead, it relies on a network of suppliers who ship products directly to customers.
In an article on Time, it was reported that while Temu’s prices are cheap, many new customers actually aren’t paying anything at all. That’s because Temu has launched a campaign on social media in which the more you convince others to join the app and make purchases, the more money you earn in return.
Here are some websites that discuss Why Is Temu So Cheap:
- [Wired](https://www.wired.com/story/how-retail-app-temu-lures-us-shoppers-with-mind-bending-prices/)
- [PCMag](https://www.pcmag.com/how-to/what-is-temu-read-before-you-shop-like-a-billionaire)
- [Tom's Guide](https://www.tomsguide.com/features/i-spent-dollar50-on-the-temu-app-and-im-surprised-by-what-happened)
- [Time](https://time.com/6243738/temu-app-complaints/)
- [Yahoo News](https://news.yahoo.com/does-temu-prices-low-behind-183000287.html)
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