Chinese-owned digital marketplace Temu is dominating the internet as the latest digital superstore. It holds the top spot as a free shopping app in both Apple’s App Store and Google’s Play Store, surpassing Shein, Amazon, and Walmart
What is Temu?
Temu is an expansive online megastore offering an extensive array of products, ranging from car accessories, clothing, electronics, outdoor furniture, power tools, to baby clothes, and more.
Additionally, I purchased some off-brand geeky items from Temu and found them surprisingly satisfactory.
One standout aspect of Temu is its remarkably affordable pricing. You can acquire sunglasses for just $2, necklaces for a mere $1, and glow-in-the-dark pet collars for only $3. In fact, virtually anything you can envision is likely available on Temu for under $30.
While some draw comparisons between Temu and platforms like Shein, Wish, and AliExpress, Temu distinguishes itself. Shein primarily concentrates on fashion and apparel, whereas Temu offers a wide-ranging selection of products. In contrast, Wish and AliExpress are recognized for lower-quality items, extended shipping durations, and more limited return windows
In late 2022, Temu made its debut and rapidly ascended to the highest rank within the shopping categories of both the App Store and Play Store. The platform gained prominence through its advertising campaigns, with consumers being drawn to its competitive pricing
Is Temu a trustworthy and legitimate website?
It all hinges on your definition of ‘legitimate.’ Indeed, most of the products available on Temu are genuine in the sense that you will receive them, typically within about 10 days of placing your order.
However, when it comes to tech products, it’s important to note that unless they bear a blue checkmark on their product listing, they are not branded items. As of now, the only tech brands verified with a blue checkmark on Temu are Xiaomi and Lenovo.
Furthermore, there has been some uncertainty about the authenticity of certain products on Temu. Earlier this year, an HP representative informed ZDNET that they couldn’t confirm whether the HP products on Temu were sourced from authorized resellers or genuine HP devices. Following ZDNET’s inquiry, there are no longer any products on Temu advertised as HP products.
Some customers have reported that the items they ordered appeared slightly different from their online representations or were of lower quality than expected.
Nonetheless, Temu does provide compensation for late deliveries. If you purchase items with standard shipping that arrive late, Temu offers a $5 credit, and for packages bought with express shipping that experience delays, you’ll receive a $13 credit.
In other cases, items can arrive on time, be of decent or good quality, and closely resemble their appearance on Temu’s website. Product quality can be somewhat unpredictable, which isn’t too different from what you might encounter on other online stores.
If you receive items that deviate from their online listings, arrive damaged, or don’t arrive at all, you can take advantage of Temu’s Purchase Protection Program. This program guarantees a full refund if you return your items within 90 days of purchase, ensuring your money is safe.
Who is the proprietor of Temu?
PDD Holdings, a multinational commerce group headquartered in Dublin, Ireland, is the parent company of Temu and its sister company, Pinduoduo. However, pinpointing Temu’s precise origins can be somewhat challenging. In a special resolution filed with the SEC in February 2023, Pinduoduo Inc. officially changed its name to PDD Holdings and relocated its principal executive offices from Shanghai, China, to Dublin, Ireland.
It’s worth noting that the relocation of executive offices is not necessarily a cause for concern, as many tech companies, including those from the United States, often choose Ireland due to its favorable corporate tax rates.
Temu claims to have been founded in Boston in 2022, although its “About Us” page does not mention its parent company, as reported by The Washington Post. It’s likely that Temu’s Boston office serves as the central hub connected to the company’s various offices worldwide.
According to the Boston Globe, Temu opted for a presence in Boston, in part, because of its proximity to Canada, where the company had recently established another office
What is the reason for the affordability of items on Temu?
Products available on Temu are exceptionally cost-effective. Temu claims to maintain affordability by establishing a direct connection between customers and suppliers, with Temu managing the shipping process from supplier to customer. Therefore, Temu doesn’t possess ownership of the products featured on its website; instead, it acts as an intermediary, facilitating transactions between buyers and sellers.
As previously mentioned, Temu’s parent company, PDD Holdings, also oversees another e-commerce platform called Pinduoduo, which operates within China and generated over $18 billion in revenue in 2022.
Nonetheless, as previously noted, the US House Select Committee contends that Temu can offer its products at such low prices to US consumers because the company operates within the de minimis loophole. This loophole allows imports valued under $800 to enter the US without incurring duties, taxes, fees, or undergoing extensive inspections. The report suggests that Temu leverages the de minimis provision to bypass import duties, tariffs, and US Customs inspections, which contributes to the lower pricing of its products.
