The Real Reason Temu Can Offer Such Low Prices
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- Опубліковано 15 чер 2024
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If you've been on the internet recently, you've probably heard about Temu, the new e-commerce platform that's taking the world by storm. In this video, we'll delve into Temu's fascinating business model and discover how they manage to offer products at unbelievably low prices. Join us as we explore the truth behind Temu's success and whether it's sustainable in the long run.
0:00 - 1:47 Intro
1:48 - 5:37 Rise of PDD and Temu
5:38 - 10:40 Temu launch
10:41 Wish.com
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#Wallstreetmillennial #temu #china
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Marketer here: burning through investor cash only works if one day you’re able to multiply the price by 10x one day. You can’t do that with small trinkets, especially if there is another business waiting around the corner to undercut you with the same strategy
It's cheap products that will only last a short time. Buy it and get ready to dispose of it. You have to wait 2 weeks for the product to deliver. And that's because of customs.
That's because the goal of this company is NOT to make a profit selling you stuff. It's to steal your data and hack software systems around the world.
My husband is a Network Engineer. The Temu app was on my phone by default, and he told me to take it off of there-- even if I wasn't buying anything. The app is a known security risk for networks, far worse than any other retail app. It reports directly to the Chinese govt
Good point.
Another reason to consider the strategic value to CCP of the user data gained from installation of their software on your phone
@@sc20910
Get out of here Fox News cultist. Lying is a sin.
Once I saw the "Shop Like a Billionaire" slogan I knew the app was a complete joke targeted at the mindless masses.
it's like dropshipping from taobao but you don't have control over the shipping method you are using and the item selection on temu is much smaller.
Good thing you’re not part of the mindless masses
I’m part of the mindful minority and even I can’t deny its value is incredible. So many of the generic products on Amazon can be found on Temu for less than $5 with shipping included. If you don’t think that’s worthwhile then you’re just straight up hating
Why is that?
@@nomoreclowns100
Because that's the exact kind of statement that appeals to:
Poor people
Cheap people
People who buy things after seeing an AD for it, because someone else has it, because they are bored
People who follow trends
People who can't think for themselves
People who live a vain existence etc.
And that's also exactly the kind of people they are targeting.
In Canada there is already a minimum order size of $20. This is not that much however when someone is only looking to buy one item it encourages them to look for more items and it would be better for the customer to buy a lot at once, so you don't need to buy stuff you don't really need to fill the $20 minium next time.
"when someone is only looking to buy one item it encourages them to look for more items"
That's exactly what happened to me a few days ago. My friend wanted a purse off Temu and wanted me to order it for her since she didn't want to make an account. I found a purse similar to what she was looking for but couldn't order it until I added $4.01 to the cart because the minimum order size in the US is $10 apparently. Never knew!
This is interesting because I didn’t have this $20 minimum on my first order. I’m in Canada and my first order was $14.10. However after receiving the coupons I was gonna use the $5 off on $5+ order to get another cheap item, but now it mentions the $20 minimum
Update: I was gonna grab my freebie and a few items to make a small purchase but found that the minimum is now $15 instead of $10 since I commented 4 weeks ago. 🙄 I guess it was nice while it lasted, and we'll reach $20 sooner than I'd like.
Amazon is $35 tho and isnt it the same stuff made in china anyways but more markup?
Even at$20 min they are still losing money. Let's see how long can they last
This is variation of the eScooter/eBike/Uber scam.
A handful of people become extraordinarily wealthy by rebranding a service company as a tech stock.
The company loses money, but shareholders get paid.
I can respect the hustle tbh.
I wonder if part of the reason temu has better prices for generic items is because they aren't filled with drop shipper middle grounders over pricing Alibaba items for quicker shipping vs direct ordering and covering costs
The item quality is also worse Aliexpress and around the same as Wish... stuff also never arrives half the time and they'll just ignore you
@@parafitality2730 i dont know about you but i ordered a couple of times and it always arrived.
FYI - look online, make your own decision on them. I personally am not supporting them because it's unfair to undercut our homemade products. People will be automatically out of jobs if people won't research why China/CCP is doing this
Chinese retailers Temu and Shein regularly violate U.S. import tariff law. Skipping tariffs by shipping in smaller packages
The violations enable the companies to avoid tariffs and human rights reviews on some shipping
I'd avoid using them since they (PDD) are tied directly to the CCP and their enslavement of Uyghurs in China. Paying them nothing but to only force them to assemble the products (hence another way to save money)
Don't forget, CCP and PLA are more interested in your personal data (just like TikTok). You technically are the product to them.
Side note, you pronounced Ping Duo Duo incorrectly. They are a Chinese company, even though they are trying to shift their HQ to Singapore because America is cracking down on all Chinese companies
Temu is the middleman... They are the drop shipper. An they're subsidized by their government so they can harvest data
@@havencat9337 not me
When I first saw this site I said the same thing you said. “If it sounds to good to be true, it usually is”. After seeing your report I understand now that this is only going to be temporary. So take advantage of it while you can.
watched this video during the day and saw my parents later that night. my dad asked me if i’d heard of temu and i relayed fast facts from this video. my mum mentioned that they both watched a youtube video about it and i asked if it was WSM, and it was. hahahaha am oddly proud of their taste. WSM bringing families closer one video at a time.
I live in Australia and have bought heaps of cheap stuff from Wish and Alibaba (usually $10 or less) which has always been the kind of quality I'd expected for the price. The delivery times have usually been pretty long, like 4 to 6 weeks.I gave Temu a chance to see how they performed and the order arrived in just a week which is crazy for China to Australia. The quality was around the level I expected for what I paid.
😊😊❤😊
And you support awful business practices, by buying from these companies.
@@MisterOwling you support awful business practices whenever you buy cheap Chinese made goods regardless of where you buy them from. The phone you're holding is a good example, if they were made in America using ethically sourced components an iPhone would cost between $20k to $40k. Come at me when your entire life is free of any such items and you can judge me all you like.
@@dumbasses_R_us it's about reducing it. You're purposely buying from all these junk places like Temu, Ali Baba , Wish.
@@dumbasses_R_us idk if my first comment went through for reply but you say heeps of stuff ... I don't actively seek out Chinese unethical garbage like you tho. I try to stay local , I don't online shop often, and my Samsung was at the very least, made in their own country. Sure I support knowingly or unknowingly unethical practices, but I try at least to mitigate my impact.
Its mind boggling to see same ideas getting recycled every few years, the saying 'one born every minute', has never been more true!!
They pretend they're different, use the SAME model and go broke like the LAST place did. Gotta love companies losing money so average people get stuff cheap as hell. If investors can't see the obvious fault in repeating failed business models, it's on them. Of course if Cathie Woods says it's the next big thing in tech, or Cramer pushes it, all the idiots will get on board and lose out just like they USUALLY HAVE from listening to those two.
Well PDD was actually innovative with the group buying feature.
I think Bezos describes this well all companies die. First they offer great value sometimes buy loosing money then they raise prices to a more true price then they try to suck up all the value for themselves. In between the raising of prices to true cost and sucking up all the value for themselves companies can get disrupted by a shiny new company that can create value for its user even if that means losing money at the beginning. This is why the same ideas can be recycled over and over again.
Yes, but in this case the sucker seems to be the seller, not the buyer.
@@shinbi6009 Not really. In the long long ago of the internet many cost saving websites used to do the same thing. You would have people spam forums or go to dedicated cost saving forums. A lot of companies folded or stopped doing this because people were only going for the deals.
They already started dialing back.
They raise minimum purchase price from $19 to $39 for the 30% off coupon.
They removed the drawing game which gives around 5 cents a day of credit.
Pretty soon you may need to spend more than $10 each time in order to get free shipping.
it's not soon right now you need to spend more than $10.00 for them to even ship your order out..
Yeah, it's $20 now 😭
@@user-sr6yp7dy6gso are you using it now
Basically aliexpress then
Alibaba's shipping often is subsidized by UN rules for impoverished countries. Long-term, Temu's air freight should be much more expensive.
Could you please elaborate?
@@VMRDY he's talking about the Universal Postal Union, in essence they make it cheaper for people from developing countries to send stuff to other countries (mostly developed) by subsidising the postage cost.
Alibaba is ASLO in China. Same shipping rate.
@@morris_m_s Which means your taxes are paying for it, so why not take advantage of it?
I don't really plan on enjoying it while I can. I don't find the products on Temu to be of great quality and I just try not to buy too many useless trinkets that I would eventually throw out anyway.
That’s exactly what it sells. Useless trinkets. People should have some class and save $100 bucks for a nice speaker instead of buying a trash one for $10.
@@willissudweeks1050 20 something are you? A "nice speaker". Just wait until YOU'RE trying to live on $1100/mo retirement and can't afford to buy a new bath mat, and the only place that ever sold them for $1.99 got shut down by fear mongering know nothings.
Great video! There is already a $20 minimum in Canada, but that is very easy to meet since there is always something to buy on Temu. But just like you said, I will enjoy this ride while it lasts! I do think that changes will come sooner rather than later.
Unsafe garbage. There's nothing on there that appears to be better than dollar store quality. And even then Dollarama source better products.
Their ads seem like it is more tailored to "tiger economy" type countries that are experiencing growth spurts from capitalism (e.g. emerging middle class, first time they have access to cheap and nasty goods at low prices) than developed economies that have seen all of this stuff before and aren't really interested in being sold crap anymore.
True their Chinese counterparts have to produce quality stuff😅😅
Amazon, Walmart, and Alibaba are Olympic competitors so Temu has its work cut out. The social-team sales model worked for generations of party & door-to-door sales. Taking it to the internet with a low-cost model is an interesting take.
Temu, temu, temu temu temu, temu, temu, temu temu temu ooohh ooooohhhhh. Xi jing ping and Putin and Kim jun un too.. ten million troops thousands of nukes won't stop me from getting to you...
Temu temu temu temu, temu temu temu temu temu oooooh oooaoaoaoaha ohhh
Temu temu nearly getting my prize
I can get it, don't worry I'm not wise....
Temu temu temu temu temu
Temu temu temu temu temu
I'll make you miiinnneeee
The prices blow my miiiiiinnnddddddd
Temu temu temu temu temu
Donald trump, Joe biden and an Obama too...
A million debates a billion hates couldn't keep me from you
Temu temu temu temu temu temu temu temu temu temu
I'll make you mine the prices blow my mind
Ok Ive gotta play too:
God Almighty-Christ Jesus of Nazareth- -Holy Spirit too
A Gazillion Angel Armies all looking just for you
If God be for you no temu can be fooling you
temu temu temu temu temu temu temu temu
God’s Hand’s are bigger than you-ssss!
@@internet_userrloool
The moment I saw this show up in front of every UA-cam video I've seen over the last few weeks, I was disgusted. Between the search for profits and the search for low prices, we are truly going down and talking the planet with us.
When you can tell me of another place a retired person on $1100/mo S.S. can get a new bathmat for $1.99, we'll talk.
omg i haven't started yet but i‘m glad to see this，temu's EVERYWHERE and it's so suspicious looking?! it smacks of unsustainable business practices/reminds me of SHEIN or smthーi’m interested in finding out wth is going on with it.
So, I used to work in China. I worked 大小周, which means every other Saturday I had to come in. But there is also 大周 which is every Saturday and 小周 which no weekend overtime. Another nuance with the work culture is that most Chinese people take an hour to hour and a half nap after lunch. So, the long workdays might be slightly exaggerated. Still, the work culture there sucks, I don't nap so I would rather just work my designated hours and go home and there is no option for WFH which means that if the is some work that I need to do OT for I have to be in the office. Sometimes I feel like Western people complain too much about their work, but China collectively has an unhealthy work culture.
国外很多企业也是996的节奏，尤其是咨询，会计，高科技和金融业
@@wyw201 有可能但是我在美国没有这样的经验。在美国，有时间周末需要加班但是一般不需要。我的朋友需要，但是他是一名电工，不是一名工程师。我没有任何朋友在周末上班。只有在出差的时候我才会在周末工作。
@@googlesucks9727 那就来麦肯锡和BCG卷卷吧
A lot of the stuff you hear about China is exaggerated to comedic levels.
Thanks for your full disclosure on TEMU. These days that's more important than ever! 👍
The quality of WSM’s content always impresses me. It’s not just the research and insight, it’s the honesty and transparency that they aren’t affiliated in any way with Temu. Hard to find honest clean channels on UA-cam like WSM.
Fr man this guy I's a goat
100% agree with you
Aside from skipping going over the real information on Temu/PDD
Chinese retailers Temu and Shein regularly violate U.S. import tariff law. Skipping tariffs by shipping in smaller packages
The violations enable the companies to avoid tariffs and human rights reviews on some shipping
I'd avoid using them since they (PDD) are tied directly to the CCP and their enslavement of Uyghurs in China. Paying them nothing but to only force them to assemble the products (hence another way to save money)
Don't forget, CCP and PLA are more interested in your personal data (just like TikTok). You technically are the product to them.
Side note, you pronounced Ping Duo Duo incorrectly. They are a Chinese company, even though they are trying to shift their HQ to Singapore because America is cracking down on all Chinese companies
@@nomore-constipation I see your point. But it's not popular opinions in the west in fact.
@@nomore-constipationow, those "slaves" must be very busy and skillful, they make a million kinds of products in such huge amounts as well. 😅😅😅
Anything you can't compete with must be for "human rights" issues. At this point, you might as well say that anything made by non-white people must be made by slaves.
😊😊
Thank you for the video. I have been bombarded with Temu ads for the past few months. I was wondering how they were able to keep their prices so low and was on the lookout for YT video to explain it. Now I know.
"Here is a piece of dog doo doo, ill tell you what, we wont charge for a return"
-Temu
Temu and tiktok are my most hated companies bc the sheer amount of ads plastered all over youtube
Ditto.
However I always feel Temu is scammy looking whereas we all generally know how messed up tiktok is, at least those in the know.
I guess the reason why wish is going bankrupt is because they use deceptive prices, and you cannot see the total price till the checkout process
soo that 1$ smartphone might have 200$ shipping.
which means the full price is often in shipping instead of the item price.
and often getting shipping refunded is near impossible.
I think any business highly dependent on aviation industry will eventually get crushed at some point when aviation industry experiences a downturn. Aviation is one of the most volatile industries.
Not freight however.
During the pandemic they turn comercial planes to cargo planes, cargo planes make money.
It's a VERY volatile industry with maintenance costs cut all the time
@@OffGridInvestor yep, those ‘new’ parts aren’t always new on planes
I work at the post office and we've been getting bombarded by this junk recently. Along with amazon because their delivery service gets to pick and choose where they go. Never ordered anything on temu but I can say their packaging is quite a bit worse than amazons lol.
So you clock in and it's just bins of orange crap ready to ship out? Lmao
I order from Temu and can confirm they squish the hell out of the stuff for it to fit sometimes lol I can't complain about my items but some purses did come bent
Maybe the goal isn't to become profitable, but get big and sell the company to other investors at a high price.
This seems to be the default strategy of most VC funded companies, they generate enough buzz to get a good valuation but they never work to make a profitable business so years later once the VC funding runs out whoever is left holding the bag loses. And it usually ain't the founders by that time
Yep. You see this happening with a lot of AI companies... Just any company now slaps AI on their name and sells the company for millions lol
I ordered some things from there that I don't see the point in paying a lot of money for. Some cables and adapters (Thunderbolt, USB-A,/C...). Apple sells Thunderbolt 4 cables for 70-160 USD depending on length. Got a thunderbolt 4 cable for like 5 USD on Temu and it works perfectly. Adapters for cents, razor blades for 2 USD... I also got a nightstand for iOS 17 Nightstand mode for 12 USD, which works perfectly and looks similar to the ones that cost 100 USD on Amazon. So on things that cost a lot in our stores, but really shouldn't, Temu is an excellent deal. As long as they keep burning cash. Obviously I wouldn't buy Earphones or a watch from there.
I love a company's 'strategy' to sell stuff for less than their breakeven. Grow our revenue!
In China, the evaluation of this company is polarized. Those who like it like it very much, and those who don’t like it hate it extremely😅
the secret is to make up for it in volume...
FYI
Chinese retailers Temu and Shein regularly violate U.S. import tariff law. Skipping tariffs by shipping in smaller packages
The violations enable the companies to avoid tariffs and human rights reviews on some shipping
I'd avoid using them since they (PDD) are tied directly to the CCP and their enslavement of Uyghurs in China. Paying them nothing but to only force them to assemble the products (hence another way to save money)
Don't forget, CCP and PLA are more interested in your personal data (just like TikTok). You technically are the product to them.
Side note, you pronounced Ping Duo Duo incorrectly. They are a Chinese company, even though they are trying to shift their HQ to Singapore because America is cracking down on all Chinese companies
And let humans die of consumerism 😮 all for profit and filling landfills of stuffs we don't need and let ppl be exploited
They have other motives. I opened a new email just for the purpose of ordering from temu and the email was hacked within 24 hours. I never linked it to a phone number or another email, so I was unable to ever recover it. The recovery phone number was set to a number with a China area code. Thankfully nothing else was linked to that account but I won't be ordering from them again. They are definitely up to no good.
Subsidized shipping and government support
yep, china govt gets backdoor access to temu user data and social engineering
@@jonasbaine3538 Yes, that is true of any Chinese big tech company. The Chinese government made the richest businessman in China disappear for several months. They don't mess around.
more like no mark up high to the moon, it's a genuine price value if you try to source chinese product in other countries
Its a thrift shop; if you see it and want it buy it now. There is little organization - searches for similar items generally result in random displays of assorted stuff so I shop Amazon if I need something specific. Part of the cheap shipping is that they get a break on postal fees (last leg of the shipping) because they are a "developing nation". Quality is "good enough" for my purposes for the price. Some of the items show startling ingenuity.
The comparison with aliexpress is interesting because I feel like they’ve targeted a very different market, and done so quite successfully. Not sure if they were more consumer targeted at first but at this point they seem pretty focused on makers and a variety of niche small businesses. Definitely not the place I’d go for a watch, but, it’s the first place I’d look for something obscure like connectors to use to affix a watch band to an Apple Watch, or for a great deal on touchscreens or other electronic parts.
This targeting works out really well for them since these markets tend to be much less sensitive about shipping times as long as they are consistent and predictable, and the required marketing spend is basically nothing, customers come to them generally knowing exactly what they need. They’ve further played into this market by doing things like combined shipping, allowing them to offer free or low-cost shipping on orders over a minimum size, even if the components in the order are from multiple different sellers.
The end result is that they’ve become the go-to source for inexpensive components in a bunch of hobbies, as well as the place prototypers and smallish businesses look for weird new stuff they can’t yet get from their normal US suppliers.
Good thing I have little interest in buying slave labor junk I will never use. Helps if you have a nonconsumer skepticism.
Been using them since Jan-23 and they are the reason why I cancelled my Amazon prime member ship. Same merchandise for so much less. Just don't expect fancy packaging or such when you receive the orange TEMU package.
My experience with Temu:
Ordered wall electric testers twice with 2 different models, neither one worked! but they did refund both times and I keep them as paper weights!
About 70% of items ordered are ok but the rest are very very low quality
The minimum is $15 now
The same item listed on different pages has different prices, that’s how they gradually increase the prices without you noticing!
I am bombarded daily on average about 20 Temu notices and ads
Overall it is similar to online version of 99 cent, dollar tree stores… with free shipping! Yes you can save few bugs for now but obviously this won’t last for too long.
The irony of this is me getting a Temu ad towards the end of this video...
Ordered $24 worth of merchandise which took 10 days to arrive. Some of the products could have been purchased at slightly lower cost from HF, ie $3.99 vs $4.58 for center punch. The Mrs was able to order some products that she has not been able to buy locally.
While I did not create an account to make my purchase I do get daily emails inviting me to buy more. At this point any order over $10 gets you free shipping. I expect that to change as they can only sell at a loss for only so long.
How do you decide which videos to do in-videos ads? I can see most of your videos have an ad (Moomoo, MyHeritageDNA, Babbel etc). I was surprised not to see an In-Video ad in this video. Would you kindly explain why you'd forgo running one? I'm certain you're not short of offers!
Thanks
Another incredible deal from Temu is that they offer free shipping return. Some items they even said “keep it or donate” and they refund your money. I suppose because it costs more to return than the cost of the item.
Amazon does that, too.
@@RBzee112my mom doesn't do that 😢
No but in all seriousness no one asked
Here is a piece of dog doo doo, ill tell you what, we wont charge for a return
That’s not “incredible” because the stuff they sell is trash.
I've run into this on Ebay as well. I just return the stuff at my expense because there are people who could use it.
0:30 I had no idea holes getting attacked was so popular.
Haven't watched much porn?
So me buying from temu costs the Chinese taxpayer more than it makes the seller?
Yes
There is another loophole here. Because each item value is well below threshold, there is no import duty paid. Surprised that wasn't mentioned, but maybe WSM is unaware. If they import thousands of the same item a la Walmart et al, the duty needs to be paid. It can be upwards of 40% now.
You mean the US taxpayers? Ask yourself why it costs you more money to ship something to your neighbor than it does to get it from China to your doorstep.
Notice how he didn't buy any electronics from there
Buy yourself a phone, laptop, or data storage device (like an SSD or memory card) and see how legit it is
Yes, I was a bit disappointment by this episode I must say.
I'm surprised Aliexpress didn't catch up in the US, it's the main thing in the middle east and east europe.
Have used them for several months. Some items better than expected: kitchenware, dishes, files. Saw prices start to increase so deleted the app. It is still less ext than Amazon & Walmart but I spend too much just surfing the site. I did hear (local news) some issues with CC hacking. Don’t use so…. I am sure I may go back. ALSO…things can come “bumped up” due to packaging. Never anything major.
AliExpress has 10-14 days delivery time to Europe if not stocked regionally. I believe it mainly rail and air freight.
I bought stuff from Temu, and, I have to admit, I was surprised. The quality is as good as it said, and the prices are unbeatable. It used to take longer (about 2 weeks) for delivery but it's getting better now (1 week). One thing is that you can forget customer services or tech support or refund. Buy things at your own risks, if it doesn't work, throw it away. And I have one shipment that never arrived. Phone calls and email are a waiste of time. But, in general, I would buy from Temu again. And praying at the same time that the order will arrive.
Unbeatable prices because the slaves making them are beat!
They actually they are actually pretty good about refunds if it doesn't meet expectations. They generally don't even ask you to ship back but probably will change in the future due too fraud.
Their refund are QUICK AND EASY. Go put 1-3 one star review, and it INSTANTLY POPS UP asking if you want a refund!! I've gotten 3. 2 for D.O.A.'s and one for an item I ORDERED THE WRONG SIZE OF!! (and STILL my 1 star reviews are VISIBLE on the sight)
@@th-cc6ei Look at the label inside your shirt. Where was it made? Thank Clinton for that one!
I've placed 15 orders so far and have runout of things I thought I needed. Satisfied will 95% of my purchases and they immediately refund if you aren't satisfied. Orders come on time which has been about a week or less. Nothing was ever damaged. It's addicting by the looks of my drawers. Great fun.
I kinda feel like I just watched an infomercial for TEMU from an influencer...
Temu is actually pretty good. The quality is actually better than I expected. Buying textiles, kitchen gadgets, tools, or other things like this is the way to go. Their electronics are good, but I worry about data sharing, etc.
*Oh, I've bought a lot of stuff off TEMU. As long as you don't expect the best of the best you'd be fine. But TEMU has exceeded my expectation for the price they offer.* *Would I buy my power tools from them, no, but hand tools that I rarely use, yes.*
I lose winter gloves like crazy. For 3.11, I can go nuts.
Aliexpress is air to the UK 1-2 weeks normally
I’d be curious to know how well those items you bought hold up, and for how long.
quality is the same as all the word salad branded products on amazon (its most likely the same product). they do under $30 small appliances, electronics, arts and crafts (stuff at Michaels), cheap electronics/accessories (ex off brand airpods, switch controllers, phone cases) at much lower prices than amazon. They throw in unique and funky clothes/shoes/bedroom/bathroom stuff for cheap as well. A bunch of stuff at Rumi is sold at Temu for about 1/2 of the price. Some stuff is you get what you paid for (razors) of overall generally decent quality. The pop-ups are incredibally annoying on the phone app that I don't bother downloading it, but if you shop w/ your computer you will rarely get them.
My coworker bought an electric teapot a couple months ago and uses it daily, it's been holding up ok so far. On the other hand, my friend bought various items like storage bags, hiking boots cover, etc., and all of them are junk, some of them broke during the first use and some of them aren't even usable. I don't think quality control exists. She's like oh well they're cheap, but that's still money wasted, and she is throwing out so much plastic and stuff. I have always been taught to take care of my possessions and not be wasteful, so it's disturbing to see this.
I'm pretty sure the real reason why chinese shipping is so cheap is because they get discounts from the world trade organization for being developing country
Yup. Washington Post did a story on it a few tears back. American citizens pay high postage rates because a portion of that income goes to subsidize China's shipping.
Totally agreed your point of views. Based on "No free lunch" theorem, Temu won't last that long coz the logistic cost will eat up all the profits.
I've ordered from stores on AliExpress many times and they have always sent my orders by air. I have received parcels from then in as little as 10 days, and that is to Montana.
I always thought it was the same reason how Wish does it. (By scamming consumers with fake product pictures that look nothing like it)
I remember hearing how wish stuff looked nothing like it and was HORRENDOUS quality.
Any social media advertised company should be assumed to be a fraud
666
Well, I'm wearing one of their sleep shirts as we speak. I've ordered so much from them; about to try out the mini washing machine!🤫
Don’t forget the costs of logistics services 8:07 which is about 20-50% of the product costs.
My first two packages arrived in 10 days & 9 days. Pretty impressive.
I've had about six shipments from Temu, all delivered timely. About 70+ items total, mostly household items and clothing. Nothing was lower quality than expected, all acceptable, really. I made one clothing return request which was dealt with acceptably the same day. I don't play the games but can see how they add to the experience for younger shoppers. There is a $20US minimum for free shipping, but you'd have to be brain dead not to find $20 of useful/fun items to order. I'm sure they're collecting data, but who isn't these days? I can't guess whether they can sustain this pace, but I have no complaints at this point.
The orange branded packaging has already gone and there's a limited spend limit to pay with paypal. I don't remember the limit because I usually buy over it anyway.
Funny thing, I got a Temu ad while watching this show.
They want to scale up enough to have huge warehouse in US to store goods from sea shipping
Temu does offer express shipping for 20 dollars, they use DHL to ship it from China
Yes, Temu's products are so so quality comparable to dollar stores, but their shipping times are incredible! 7 days from China to US, and its free
Free? So those slaves making the stuff dont count? Oh wait they are chinese though. But if they were black slaves it would be different.
That idea of teams is something I came up with a few years ago (a little different and for more expensive products) but I'm still at least a couple of years from implementing. When I watched this video I was pissed that someone else is already doing it😂.
My guess is theyll eventually switch from air frieght to sea frieght. This will extend shipping time but will limit price increases. Like with a more expensive shipping option people can opt into for a price
Keeping up with the "cash burn" ,😂
Good video. I'm looking for someone that knows how to get an American company to put my label on their products so I can sell as my own brand. Proven track record needed to apply.
Thanks good review, I was thinking about using them now I know it’s safe
Why not do more research ? you will be surprised by what you find.
I live in Canada but have literally never heard of this. Interesting….
“Gamified social shopping experience” is one of the most corporate-dystopian phrases I’ve ever heard.
Temu already has a $20 minimum order size in Canada, and prices significantly undercut Amazon only on part of their products.
*Will TEMU last? Time will tell.*
not gonna lie here, so far ive ordered 11 things on temu and ive got 10 more coming and everything ive bought is suprisingly high quality, ofcourse it smells like china factory when you first open it but its really high quality good for the price
I get stuff from Alibaba sometimes and it is usually only about a week to get to me in Australia. Wonder how fast Temu would be then.
It can hardly be faster than a week. It's just a physical limit for this kind of shipping method. Unless you pay expedited shipping using UPS/ FedEx.
I got a Temu ad while watching this.
My first order gets delivered from Temu in like 4 days. It was like 5 items. I’ll see if they actually all arrive and if they were legit like in the description! But yes I do agree their prices were cheap and gave me free shipping
has it arrived yet?
It never arrived huh lol jk UA-cam comments are hard to come back to. I've ordered things from there and have loved it all, ik everyone can't say the same, I'm glad I got lucky 😭
@@user-sr6yp7dy6g yes it arrived. And UA-cam comments are definitely hard to come back to for most people. Also the temu items I got were kinda cheap quality but good enough for what I paid for them!
Shipping by air instead of ships have got to be horrible for the environment. Also, we need our money to go back into the US economy, so it would be problematic if Americans all just shopped from Temu
Most of the textiles are not any cheaper than stores like Ross or Marshall, likely with lower quality. Legit branded stuff like some toys are also more expensive compared to when they are on sale on amazon or elsewhere. There are some crazy cheap electronics, but I was rather disappointed by the quality from my purchases. Also, I read that their sellers are not as profitable as advertised, so many are withdrawing from the platform once their current inventory runs out (you'll often find 5+ sellers listing the same item at different prices, the one with most reviews, legit or otherwise, gets the most sales)
now minimum order value is $25 in usa.
So this now 5 months later and Temu seems to be even bigger. What I do know is that the basic things I've bought have been fine and way less money than I'd have spent elsewhere. I even twice got automatic $5.00 credit when an order showed up a few days later than expected. T-shirts and sweats have been great for the price and a lot of the stuff is the exact item sold on Amazon. For me, the trick to Temu is never use my phone or allow texts, and never play the coupon game.
The rate of consumerism in America is astounding and unhealthy for the environment
Yes,only america suffers from consumerism😂
No shot Sherlock
@@jonmeray713 its such a waste, and LV and Dior etc. It's all a con.
Consumerism is way worse in China. Like the gamification stuff you see in these Chinese apps are made from experience with selling on the Chinese market.
Consumerism also drives the economy that makes life so much better. So it's a double edged sword.
If I understand this correctly, the investors in these companies burn money to attract customers and inflate numbers. Their share is sold to another set of investors at a profit. This continues until the company reaches IPO. At that point the general public buys the company at over inflated prices. All investors thus far make money. The market decides the fate of the IPO investors, typically going down because the business is burning cash. So in the end it's the customers / general public that pay the price.
No import tax in Canada/US ?
Good analysis but you forgot to mention that PDD makes its money from its payment platform and that is what they will be bringing to market next.
Amazon is pretty much wish now anyway and prime isn't worth it anymore as they never stick to their next day delivery.
Got Temu ads while watching your video 😂
I checked the App, the prices seem "okay" to slightly pricey, when compared to something like shopee.
I never bought anything from AliExpress because I didn’t need twenty watches or whatever. With Wish, the quality of the items was just bad. I think people like the idea of an online Dollar Store. Recently I purchased from TEMU and the quality met expectations however the shopping experience was definitely gamified, this is, addicting: the more you bought, the more you saved and you’d get a coupon but the coupon only lasted a week so you would have to spend again soon in order to earn the lower price. I watched this video because I figured, “there’s gotta be a catch,” but I don’t think this content educated me any further than what I already knew. Plus another commenter mentioned data selling which I figured, too. It would be cool if TEMU offered a cheaper, slower shipping to keep costs low especially for people that want to consider energy use and carbon footprint of air versus sea.
They literally don't care, they only want your money.
They won’t raise prices, subscription is the end game for all so they will launch their own version of a “prime” to keep low to free shipping imo, also post Covid air travel has reduced for “people” and I can imagine someone has struck up a deal to buy up spare space in existing planes destined for these locations anyhow (that aren’t as full anymore) so sea freight isn’t the issue rather emptier planes is an advantage
Didnt expect this one 😮
The problem is that when they scale back some other company will come in offering low prices and lose money looking to replicate Temu's success. So if they raise prices they'll start losing market share.
Already got what I wanted hella cheap, I'll keep using it til it's dry 😎
Are they subsidized by the Chinese government? I mean a quick search says "it's unclear" but curious if anyone has something on that.
I've always wanted to get a toupee, since I was 25, but now that they're $4.99 on this app I am sickened by the thought.
Hahaha, I feel that I can laugh for a hundred years.
The moral of the story is buy you stuff before the companies involved burn through their cash.
The way i think about it, i could spend lets say a cheap 3 bucks on some gloves that smell, arent comfortable, leak water in and break within a few weeks. Or i buy legit 10-20 dollar gloves that are working as intended and at the very least last a full winter. If i pay 5 times cheap im gonna pay more in the long run plus have a worse experience, so im not really saving money at all. I simply get what i pay for.
They're also heavily subsidized by the government. That's the reason for the low prices.