When Teemu launched in 2022, I didn’t think it would become so popular among bargain shoppers. But over time, the platform has gained a loyal following, which isn’t surprising given the variety of products the company offers, generous discounts, and fun freebies.
While browsing the platform the other day, I found a surprising number of tech gadgets with 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 made me wonder where the e-commerce giant is getting its tech from and, most importantly, why the prices of these items are so affordable.
The supply chain behind Teemu’s tech products
Temu claims on its website that it was founded in 2022 in Boston, MA. This is actually true. However, according to a report by CNBC, Temu is owned by PDD Holdings, a company of Chinese origin, which later moved its headquarters to Ireland.
Given its background, it is not surprising that more than 100,000 sellers are located in China (as confirmed by Marketplace Pulse). Therefore, it is more than likely that at least some of the tech products are sourced from Asian manufacturing centers, such as China.
Of course, this sales strategy is not unique to Temu only. Many well-known companies source products from or manufacture them overseas, as it is more cost-efficient.
A Change in Its Sales Strategy
If you purchased products on Temu in the early days of its launch, you will remember how long it used to take for packages to arrive. Delivery times of several days to a few weeks were common. However, there has been a change in Temu’s sales strategy recently. For example, if you browse tech goods on the platform, you will notice that many products are marked “local.” Items with this tag are shipped from within the country, so they will get to you quickly.
However, keep in mind that these “local” products are shipped by sellers who keep inventory in a US warehouse, but were likely manufactured overseas. This approach of partnering with international sellers who maintain inventory in the US has undoubtedly given Temu a competitive advantage against e-commerce giants like Amazon. It works for buyers too as they benefit from faster delivery times and potentially lower shipping costs.
However, in terms of quality, you’ll find that it varies considerably depending on the brand. While some brands may offer quality products at great prices, others may fall short of your expectations. This is why it’s especially important that you look at the ratings of different products and read reviews. And this is especially true for tech goods, where you’re spending a lot more than you would on small household goods or clothing.
Another piece of advice 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 want to buy is rated on the marketplace. Plus, Temu has a lot of options for affordable shopping, so be sure to shop around.
How trustworthy are Temu’s authorized providers
On Temu, you’ll notice that some tech sellers have the “Authorized Provider” tag. What does that mean, and are they better than other sellers on the platform? Well, it depends.
To earn the “Authorized Provider” tag on Temu, the seller has to go through a certain amount of verification. While this tag offers some reassurance, especially if you’re buying a product with a higher-than-average price, 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 with the “local” and “authorized provider” tags, don’t forget to verify that the product is in working condition when you receive it.
Inspect the item and make sure it’s not damaged. If you notice any problems, contact Temu’s customer support. And, of course, no matter what kind of seller you’re dealing with, take some time to familiarize yourself with the scams that are common on Temu so you don’t fall victim to any of them.
Factors Behind Temu’s Low Prices
Many tech products on the platform are manufactured in other geographies with lower production costs, which is a main reason for Temu’s affordable prices. By adopting a direct-to-consumer model, Temu is able to connect North American buyers directly with Asian manufacturers without using middlemen who can raise the price of products to account for additional costs like retail overhead and delivery fees.
Another factor is the de minimis exception, which allows goods worth less than $800 to be imported without customs duties or taxes and even without inspection by U.S. Customs.