Temu is an e-commerce company that connects consumers with merchandise partners, manufacturers, and brands through an online shopping center, offering a wide selection of quality merchandise at near wholesale prices.

Temu Enters the Public Eye

After launching its first Super Bowl ad in 2023, Temu quickly gained popularity in the United States, becoming one of the most downloaded apps. It ran another Super Bowl ad in 2024, at a time when the United States was grappling with record inflation. Against this backdrop, Temu's promise to sell everyday items at extremely low prices resonated with users.

Impressively, Temu has shown strong performance in customer loyalty and retention. A report by Earnest indicates that Temu's customer loyalty rate is as high as 28%, almost double that of Walmart and Target customers, and although slightly less than Amazon, it's still a commendable achievement. This suggests that Temu has successfully built a loyal customer base, which is crucial for any e-commerce platform.

While Temu has not yet made significant strides in attracting western brands, its growing customer base and loyalty show great potential. In the coming months, Temu plans to open up to brands in the United States and Europe, a strategy that could further expand its market share and attract more western brands and retailers.

Compared to Amazon, Temu's current biggest advantage lies in its strong appeal of low-cost, low-quality products. If you're shopping for Christmas gift tags and wrapping for 2024, the slower delivery time offered by Temu isn't a hindrance, especially when you might be paying half the price of similar products on Amazon. As Temu plans to open up to American and European brands in the coming months, we'll be closely watching how many western brands and retailers it can attract, and whether consumers are willing to pay higher prices for local delivery services.

Temu and Amazon, two e-commerce powerhouses, cater to distinct audiences and operate unique business models. Your choice between these platforms depends on whether you're a deal-seeking consumer or a business aiming to widen your reach.

Target Audience:

Temu primarily serves value-conscious consumers in North America, particularly the United States, who are drawn to its competitive pricing. In contrast, Amazon caters to a broader audience across various income levels, offering both competitively priced and premium items.

Product Selection:

Temu provides a vast array of competitively priced products across different categories, focusing on sourcing from China. Amazon, on the other hand, showcases an even more extensive product selection, including established brands, private label products, and items sold directly by Amazon.

Seller Options:

Temu operates a selective seller onboarding process, with businesses applying either through an existing Pinduoduo seller account or directly on Temu’s website. Amazon offers two main options for sellers: Fulfillment by Amazon (FBA), where sellers can use Amazon's extensive warehouse network, and Self-Fulfillment, which allows sellers to control their logistics.

Fulfillment Model:

Temu manages the entire process from product storage in China to delivery to customers in North America. Amazon, however, provides sellers with more flexibility, offering both streamlined fulfillment via FBA and control over logistics via Self-Fulfillment.

However, with its rise, Temu has also faced a chorus of criticism. The lure of low prices led many to buy what they later deemed 'useless products,' sparking a backlash against overconsumption. This negative sentiment was directed at Temu, with some labeling their products as 'junk.' The surprisingly low prices also forced customers to scrutinize product details more closely. For instance, consider a fitness tracker sold on Temu. The attractive price enticed customers to purchase it. Upon receipt, they realized it lacked some features found in pricier models, such as heart rate monitoring or GPS tracking. Yet, the basic functions like step counting and sleep tracking worked just fine. This underscores the fact that in the context of Chinese manufacturing, low cost does not equate to low quality.

As Temu continues to grow, it has managed to build a seemingly loyal customer base. Now, it's time for Temu to expand its market share in the western e-commerce space and start challenging established brands, retailers, and markets.