Here's why everything on Temu is so cheap (2024)

FAQs

Why does Temu sell so cheaply? ›

As mentioned earlier, Temu sources their products directly from manufacturers in China, cutting out the middleman and reducing costs. They also operate on a low-profit margin model, which allows them to offer products at prices lower than most retailers.

While Temu may offer discounts on various items, its pricing structure revolves around limited margins and strategic supplier relationships. AliExpress: Renowned for its affordability, AliExpress offers products at competitive prices, thanks to its direct link with manufacturers.

Temu's low prices and sending purchased items directly to consumers allow it to bypass tariffs, saving it a ton of cash. More concerning is the issue of forced labor. Temu does not manufacture products itself, instead shipping them from factories in China to consumers.

Does Temu Make a Profit? It's believed that Temu does not make a profit at this time.

The probe is warranted, critics say, because of anti-competitive practices skirting U.S. trade and public safety regulations; alleged use of slave laborers to make products sold at cut-rate prices; and advertising targeting children, low-income families and older Americans.

It also says that Temu "is purposefully and intentionally loaded with tools to execute dangerous malware and spyware activities on user devices." The app is so invasive that it's even designed to harvest users' personal photos and videos, cybersecurity experts warn.

Prices: Temu's prices are significantly cheaper than Amazon's because Temu eliminates intermediaries, allowing for direct sales from manufacturers.

Though Shein has kept a check on the sellers, multiple issues have still been reported with clothes made of cheap fabric or polyester. Still, based on the reviews, Shein offers better quality at affordable pricing compared to Temu. The latter has claimed to offer dupes and knock-off products, too.

While both platforms provide access to low-priced products, Temu stands out for its emphasis on quality, reliability, and localized sourcing. On the other hand, Wish boasts a vast product catalog and competitive pricing but may vary in terms of product quality and shipping reliability.

The lawsuit, which describes the application as 'dangerous malware', claims Temu can collect a lot of data from the devices it's installed on, and points to the risks of providing information to a Chinese company.

Is it ethical to buy from Temu? ›

Is Temu Ethical? Temu has been accused of a multitude of unethical practices from forced labor, copyrighting images from other businesses, stealing designs, data leaks, violating privacy rules, tax evasion, the list goes on, and very much suggests Temu to be unethical.

Why is Temu controversial? The US government accused Temu of potential data risks after Google suspended its sister site, e-commerce platform Pinduoduo, for containing malware. According to CNBC, analysts say Temu is less of a threat, and the risks associated with Pinduoduo were targeted at Chinese users.

Temu is a legitimate company and a functioning e-commerce site, but it lacks accreditation from the Better Business Bureau (BBB), which is the standard for major retailers. Many of the tech items being sold on the site look like those manufactured by major companies like Dell or HP, but they're not authentic.

Temu is a Chinese-owned e-commerce company that specializes in low-cost and discount goods — mostly shipped from China. Temu's WhaleCo is owned by China-based PDD, which also owns the hugely popular Chinese e-commerce giant Pinduoduo.

The safety of buying from Temu is a common concern for many people. While Temu is a legitimate online retailer, there are some potential risks to consider. 1. Quality control: As mentioned earlier, some customers have reported receiving low-quality products or products that are different from what was advertised.

The Temu controversy centers around the data-gathering practices of its parent company, PDD Holdings. As alluded to earlier in this article, PDD also owns a Chinese retailer called Pinduoduo, the app for which was (for a while) available on the Google Play Store.

Temu officials claim to offer premium quality products at lower prices, but the reviews are somehow mixed. Some users have found the products worth the price, and some have contradicting reviews. Temu manufacturing units are working in China, and besides that, Temu also has third-party sellers on the platform.