E-commerce has long been a staple of the economy, especially in the United States of America. From the early days of the dot-com bubble burst to the overt reliance on the internet during the COVID-19 pandemic, our relationship with the web and its ability to connect us to our needs has been consistently prevailing.
In recent months and years, shoppers have grown used to the idea that low-priced goods on the internet are synonymous with poor quality, and one company by the name of Temu is looking to change this mindset entirely.
Let’s explore the world of Temu, get to know how its analytic system is saving shoppers money, and enjoy how sellers are finding better ways to serve their shoppers.
The World of Temu
Temu operates as a third-party e-commerce platform that works to connect sellers with the consumers that they are trying to find. With 29 different categories featuring clothing, electronics, and appliances, Temu was quick to become the most downloaded shopping application in the United States, outstripping platforms like Shein, Wish, and Alibaba. The popularity of the app comes from its low prices and high-quality comparables. An excellent ukulele can be purchased for $25. Decent earbuds can be found for just $5.
Through Temu’s advanced algorithmic research, the company can provide key analytics to sellers trying to find success on the platform. In the same way that Google caters results to the search engine prompts of a user, Temu targets price points and product options for businesses trying to find success.
Because of Temu’s approach, some products can reach reductions near 90% of their original total. With free shipping atop most purchases, shoppers in Temu are enjoying products that are priced wholesale.
Beating the Competition
Why is Temu so cheap in such a crowded marketplace of products and platforms? Even with competitors like Alibaba and Amazon, Temu is capable of beating their prices thanks to its focus on staying competitive in the marketplace. By providing sellers with advanced analytics at no extra cost, these sellers can save money on their marketing budgets while passing savings on directly to the consumer.
Some companies can spend millions of dollars on analytics and consumer surveys, something that Temu is willing to take off their hands simply as part of their collaboration.
While still under a year old, Temu has risen to become the #1 downloaded app following its establishment. At the time of this writing, Temu features more than 10,000 employees around the world, with a merchant base easily exceeding $11 million. Temu handles more than $61 billion in annual orders.