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When Temu launched in 2022, I didn’t think it would become such a hit among bargain buyers. But over time, the platform has garnered a loyal following, which is unsurprising, given the variety of products, generous discounts, and fun freebies the company offers.
While browsing the platform the other day, I came across a surprising number of tech gadgets at prices that seemed too good to be true. Sure, I expected discounted home goods and lifestyle essentials, but I didn’t expect to see things like speakers, earphones, and cameras on the site. This got me wondering where the e-commerce giant was sourcing its tech and, more importantly, why these goods were priced so affordably.
The Supply Chain Behind Temu’s Tech Products
Temuclaimson its website that it was founded in Boston, MA, in 2022. That is, indeed, true. However,Temuis owned by PDD Holdings, a company with Chinese origins that later moved its headquarters to Ireland, per areport from CNBC. Given its background, it’s unsurprising that a whopping 100,000 sellers are based in China (as confirmed byMarketplace Pulse). So, it’s more than likely that at least a few tech products are sourced from Asian manufacturing hubs, such as China.
Of course, this selling strategy isn’t unique to Temu. Many well-known companies source products or manufacture them overseas simply because it’s more cost-efficient.
A Change In Its Selling Strategy
If you purchased products on Temu in the early days of its launch, you might remember just how long packages took to arrive. A delivery time ranging between several days to a few weeks was normal. However, there’s been a shift in Temu’s selling strategy of late. For instance, if you browse for tech goods on the platform, you’ll notice that many products are marked “Local.” Items with this tag are shipped from within the country, so they’ll reach you quicker.
Keep in mind, however, that while these “Local” products are shipped by sellers with an inventory in an American warehouse, they were likely manufactured overseas. This approach of partnering with international sellers who maintain inventories within the US has undoubtedly given Temu a competitive advantage against e-commerce giants like Amazon. It also works for buyers because they get to take advantage of quicker delivery times and potentially lower shipping costs.
In terms of the quality, however, you’ll find that it varies significantly, depending on the brand. While some brands might offer quality products at excellent value, others might fall short of your expectations. This is why it’s especially important that you check the ratings and read the reviews for different products. And this is particularly true for tech goods, where you’re likely spending more than you would on smaller household goods or clothing.
Another tip I have is to check if the seller has listed their online store on other platforms, like Amazon and eBay. This can give you a good idea of how the product you intend to purchase is rated across marketplaces. Also, there are manyalternatives to Temu for affordable shopping, so be sure to shop around.
How Trustworthy Are Temu’s Authorized Providers?
On Temu, you’ll see that some tech sellers have an “Authorized Provider” tag. What does this mean, and are they any better than other sellers on the platform? Well, it depends. To earn an “Authorized Provider” tag on Temu, a seller goes through some level of verification. While this tag provides some reassurance, especially if you’re purchasing a product with a higher-than-average price tag, keep in mind that your experience with the product can still vary.
The good news is that if you receive a damaged product or don’t receive it at all, Temu’s Purchase Protection Program offers refunds. So, while you’re best off looking for tech products that have the “Local” and “Authorized Provider” tags, don’t forget to verify that the product is in working order upon receiving it. Inspect the item and make sure it’s free of damage. If you spot any issues, reach out to Temu’s customer support. And, of course, regardless of the type of seller you’re dealing with, take some time to familiarize yourself withscams on Temuso you don’t fall victim to one of them.
The Factors Behind Temu’s Low Prices
Many tech products on the platform are manufactured in other geographies with lower production costs, which is one of the primary reasons for Temu’s affordable pricing. By adopting a direct-to-consumer model, Temu is able to connect North American shoppers with Asian manufacturers directly without using middlemen who might mark up the price of products to account for additional costs, such as retail overheads and distribution fees.
Another factor is the de minimis exception, which allows goods valued under $800 to be imported without customs duties or taxes and even inspection by US Customs. According to aSelect Committee report[PDF], Temu relies heavily on the de minimis exception to keep its prices low and maintain its edge against US-based competitors.
Moreover, Temu isn’t selling tech from well-known brands with high price tags. For instance, you’re not going to find iPhones (by the way, it’s best tobuy your iPhone directly from Apple) or the newMicrosoft Surface Pro 11on the site. Rather, sellers on Temu offer affordable products that might look or function similar to those sold by well-known brands. This has undoubtedly helped keep the average price of products on the site low.
Having said that, I should mention that Temu is still taking a beating by selling low-cost products. Just last year,Wiredreported that Temu was losing around $30 per order as part of its aggressive strategy to break into the American market. It remains to be seen if Temu prices will remain at the same level once the e-commerce company gains a foothold in the country.
As in the case of any budget product, quality is always a concern. However, by doing your research, picking tech products with the best ratings and reviews on the platform, and taking advantage of Temu’s Purchase Protection Program should you receive a damaged product, you may mitigate some of the risks involved with buying cheaper goods from Temu.
