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Why is Temu so cheap?
We explain how China traders can offer the products so cheaply
Why Temu is so cheap, that is, can offer products at a much lower price than the competition, we tell you in the following video. We explain what’s behind Temu, where the hype comes from and whether the new marketplace is serious. All this in this video.
What is Temu?
So what is Temu, anyway?
First and foremost, most people probably learned about Temu through some TikToks, in which you can find, for example, the name Temu. technical devices were offered at significantly lower prices compared to Amazon and Co.
Therefore, Temu is often compared to AliExpress. However, the new online marketplace does not originally come from China, but Boston, i.e. the USA. It was founded in 2022 with the idea of offering U.S. consumers access to products from China. Temu has now also arrived in Europe and is currently one of the most downloaded apps. If we go to the site ourselves, we will see that they shine with extreme discounts, flashy colors and very different products. From headphones to children’s fashion, everything can be found here very, very cheaply.
Why is Temu so cheap? - This is how the hype came about
But why is Temu so hype?
Collaboration with influencers plays an important role in this. So you can find under the own hashtag #temuhaul for example. countless videos in which influencers promote the marketplace. In addition, recruiting videos keep appearing on TikTok with the background that you yourself will receive a free product if 9 friends newly sign up on the platform. In addition, sophisticated AI mechanisms run in the background of Temu. This makes it possible to identify trends faster than anyone else, exploit them and offer products based on them.
So that means trendy, interesting products, super cheap, advertised by influencers and plus free products if you recruit people yourself are behind the hype of Temu.
Why is Temu so cheap? - What's behind it
But how can retailers offer the products so cheaply?
For one thing, no real brand-name products are offered here. If you enter e.g. Airpods, you get something that looks like one, but is certainly not an Apple product and is not declared as such. Unlike German retailers, Chinese retailers can often save on warehousing because the products are shipped directly from the factory. Furthermore, there are no middlemen, the Temu platform mediates between Chinese manufacturers and German customers. And last but not least, the so-called Universal Postal Convention plays an important role, according to which small packages whose contents do not exceed 150€ and are sent by airmail, do not incur customs duties. So much for the reasons for the hype and the low prices.
Is Temu reputable?
But is Temu serious now?
Yes and no, you can never quite assure it that way. Temu ultimately works like Amazon, there is a platform on which merchants can offer their goods. However, how reliable the trader is in the end and how qualitative the goods are can only be checked to a limited extent by the operator of the marketplace.
Amazon regulates this through very strict guidelines. Temu, on the other hand, has some rather negative reviews on Trustpilot, which talk about “subterranean delivery times”, “junk products” and “poor support”.
What you can definitely say about this is that significantly longer delivery times than Amazon can be expected.
Other aspects such as sustainability, miserable working conditions and lack of social and economic standards are generally things that Far Eastern productions are accused of. That these are not adhered to at such low prices may well be the case. This means that Temu is not a fake or scam store, but delivery can still take weeks, the goods may be defective, there are no customs duties, but import sales tax on top and the availability of customer service for inquiries is rather poor.
As a buyer you should pay attention to the following
But let’s move on to the slightly more concerning points. First of all, it should be said that we are not allowed to give legal information with the video and we do not do that with it. That is legal statements in this video are not legally binding, but only serve to provide information.
Because what makes Temu so special is that although the company was founded in the USA, it belongs to PDD Holdings. As a Chinese company, this is therefore not subject to EU law. This means that it is possible that the CE mark, which is mandatory in Germany, is missing on the products, which means that it cannot be guaranteed that the products have been tested.
Who is liable after the purchase?
Under certain circumstances, this can have far-reaching consequences. This is because by buying directly from China, the buyer is considered the importer and can potentially be held liable for any damage caused. If you charge your cell phone purchased from Temu at a party and it suddenly catches fire, it can end badly. So pay attention to what you buy, look at the reviews beforehand and do not go in advance if possible.
Why is Temu so cheap? - Summary
I hope it is now a little clearer where the hype around Temu comes from, why the products can be offered so cheaply and how the legal situation is to be assessed. If you still have questions, please write them in the comments. If you need help with marketplace optimization, store creation or online marketing, make an appointment right here.
Do you have questions or need an individual offer? Do not hesitate to contact us.
Haben Sie Fragen oder brauchen ein individuelles Angebot? Zögern Sie nicht, uns zu kontaktieren.
