Between the pandemic and the rise of online shopping in general, e-commerce giants like Temu are enjoying unprecedented growth in a market that is notoriously kind toward what they have to offer. A recent entrant into the e-commerce market in the United States, Temu was launched in September of 2022, where the online retailer went from a flat zero unique visitors to more than 44.5 million by the end of December.
Already thriving in the busy internet marketplace, Temu has gotten praise and skepticism from outside sources that believe the application and e-commerce platform are simply too good to be true. Through low prices and convenient product access, Temu has built a reputation as a giant in the e-commerce world in just under a year.
How did Temu get to where they are now? Let’s explore!
The Meteoric Growth of Temu
If you were browsing the internet for a place to buy goods, you’d have more than a few choices available. If you are like most people, then you are likely to look at prices when determining where you are taking your business — and this is where Temu surges ahead of the rest of the pack.
Temu works proactively with buyers by matching supply and demand together, learning which products have the most current popularity while adjusting production as needed. As this process has become nearly automated, Temu can cut its inventory while driving up profits, all while avoiding missteps along the way.
Shoppers looking to save a dollar at every shopping encounter will find that Temu helps them same when they need to save. Throughout the process, buyers are invited to leave comments and reviews as well as their insights, all so that products can become better customized for buyers.
Team Up, Price Down – TEMU
With savings being the goal, Temu works with its sellers to bring down pricing for everyone. The name ‘Temu’ is a mash-up of the phrase Team Up, Price Down which is the business model that Temu thrives on. The entire TEMU process can be fitted into three simple steps, so let’s analyze them together.
First, the team at Temu works to incentivize price reduction by providing benefits to both the buyer and the seller. Product design will anticipate demand, allowing sellers and buyers to cut costs and charge less money.
Second, Temu utilizes data-driven metrics to lower the price of its items to drive up sales and target more consumers. This collaborative approach allows both sides of the divide to profit in the same way, which leads to the final point that has brought Temu to success.
Finally, Temu works to improve the ROI of its buyers and sellers by reducing overhead costs while improving sales. This provides valuable data without any of the sandbagging that comes from dead inventory.