How Does Temu Sell Such Affordable Products?

As Americans face record high inflation, there’s more need than ever for affordable, quality products. Temu.com exists to answer this call. The online marketplace’s mission is to provide access to great products at great prices. So everyone can have better, more comfortable, and more enjoyable lives.

Still, with prices under $1 on high-value items like jewelry, clothing, home decor, and more. The question remains: how is Temu able to offer such affordable products? The answer is more simple than you might think. Temu leans on the expertise and network of its sister company, Pinduoduo.

Pinduoduo is one of the largest e-commerce platforms in the world. It has nearly 900 million active buyers and over 11 million suppliers. Pinduoduo and Temu.com are both owned by the parent company Nasdaq-listed PDD. Although you might not be familiar with PDD, you’ve likely experienced its innovations as you shop online.

Its “consumer-to-manufacturer” model, or C2M, increases efficiency, planning, and production by allowing manufacturers to tailor products to consumer needs before producing them. In other words, C2M enables companies to make products you actually want.

Rather than guessing and wasting resources making less-than-satisfactory products. This method saves manufacturers money by matching supply to demand, and those savings are passed on to the customer.

Temu Parent Company

Thanks to parent company PDD. Pinduoduo has incredible strength in sourcing and product development, making it one of the world’s largest e-commerce platforms. In fact, Goldman Sachs has named Nasdaq-listed PDD as the world’s fastest-growing internet company. To understand the size of PDD, we can consider the following statistics: at one point, the company was valued at over $200 billion.

In 2021 alone, Nasdaq-listed PDD completed 61 billion orders. With the resources and network of Pinduoduo and PDD at its disposal, Temu.com can offer a wide range of categories at affordable prices. This includes everything from fashion to pet supplies to tech – 15 categories in total.

Temu has a great variety of products because it aims to give people more choice and autonomy. In a world where people often feel trapped by limited finances, Temu.com puts the power back in the hands of the people, with thousands of affordable, quality products to choose from.

Online Resources

Having the option to choose can be meaningful in unforeseen ways. Will and Molly, a married couple from Wisconsin with four kids, have struggled to make ends meet as prices of basic necessities soar. They’ve found that they had to cut non-essential purchases completely out of their budget, with no money left over for new clothes for themselves or their kids. 

As fall rolled around and the couple’s kids returned to school, they realized their children needed new clothes for school pictures. Molly had resigned herself to swapping hand-me-downs around in an effort to give each child a “new” outfit for the occasion, but then a friend told her about Temu.com. When she checked out the site, she found a huge selection of kids’ clothes – many under $5. Inspired, Molly was able to purchase new, stylish clothes for the photos as well as some extra essentials for the upcoming cold weather without breaking the budget.

Aside from leaning on PDD’s network of manufacturers to secure low prices, Temu has a few other practices. It saves on storage and transportation costs by shipping directly from the merchant. Those savings allow the company to lower its prices. Temu’s impressive affordable offering couldn’t come at a better time, as 56% of Americans say that rising prices are the cause of their financial hardships.

That’s up from 49% in January. Temu uses its connections with the best manufacturers to create premium quality products for people from all walks of life. Whether it’s gardening supplies or health and beauty products, American shoppers can depend on Temu.com to have what they need without breaking the bank.