What is Temu?
Temu was launched in September 2022, it is an online marketplace that offers different ranges of products at rock-bottom prices, and claims that it can help you ‘shop like a billionaire’. Temu was the most downloaded app in August 2023 and it recorded a total of 38.8 million downloads worldwide. Temu claims to have over 25 million items in its catalog, which includes homeware, technology, clothes, toys, and cosmetics. Like Wish.com, it features a wide range of items, from the recognizable to the outlandish, such as a chin-toning “instrument” that runs on batteries and a newborn dummy covered in gold and diamanté. Temu doesn’t list products itself instead it is done by third-party sellers, and shipped directly from the manufacturers or producers in China to shoppers.
What are Temu’s returns policies?
Buying products from an individual seller through an online marketplace is different from getting them through an advertisement in a neighborhood newspaper as their return policies are different and the buyer rule is in effect. But there lot of online marketplaces that offer return service to their customers, and Temu is no different than these marketplaces. You have more rights as a consumer than the standard 90-day return window, which ends on the day of purchase. Once you put in a return request, you have an additional 14 days to send back the package. The process for returning an item is done through your account on the app or website. You need to provide the reason for the return as well as the preferred mode of refund which can be one of these two – Temu credit or a direct bank transfer. Generally, Temu rarely encourages the return of products due to product’s low prices as the cost of processing returned items simply isn’t worth it. According to Temu’s return policy, it may take five to fourteen “business days”.
How does Temu keep prices so low?
Temu says its prices are 70% less than what established stores charge. The headline-grabbing prices are certainly tempting, but how does the site keep them so cheap? Temu claims it’s due to its direct-to-consumer business model that ‘eliminates middlemen’. Vendors get goods in large quantities straight from Chinese producers and manufacturers, which enables them to combine shipping expenses and take advantage of bulk discounts. It claims not to spend much on marketing – although it currently has a big digital advertising campaign in the UK – and has no overheads for physical stores.
Temu’s exemption from Chinese export duties as an e-commerce company shipping to the West is another benefit. What’s more it also – thanks to its rock-bottom prices – nearly always escapes UK import duty, which only applies to orders worth £135 or more. There was a discount applied to every product we looked at on Temu, but it’s unclear how long each one has been at that price or how long it was at the previous price. Guidance from The Chartered Trading Standards Institute says pricing practices must be fair and not misleading. It states that you should take into account the length of time the product was sold at the higher price in comparison to the lower price, the date the higher price was offered, and whether or not the higher price generated sizable sales when determining whether or not a price decrease is real.
The Temu buzz
The key reasons for the popularity of Temu are its affordable prices as well as its marketing strategy which focuses on encouraging users to promote the app and its products. It has created a huge buzz by combining referrals, social media, and a gamified way of shopping. Temu offers a referral feature to its users where they can earn credit points or gifts by promoting discounts and content with friends or family. Customers can also share their referral links or codes on their social media handles like TikTok, Facebook, and Instagram.
Is Temu Legit?
Although the website is authentic, be cautious of flash sales that offer substantial discounts. Temu’s website is now gamified. Pop-ups with wheels to spin for discounts, tokens to collect, and countdown clocks make it seem like time on offers is running out, but they’re designed to push customers toward purchases. Conversely, in order to avoid having to pay to create their intellectual property, Temu sellers frequently steal designs.
