BOISE, Idaho — Amazon dominates online shopping in the U.S. with more than half of all American households holding a Prime membership. But a new contender, called Temu, is making a big push to lure shoppers away with the promise of ultra-low prices.
Temu means “Team Up, Price Down.” The idea is the more people that buy an item, the more the manufacturer will produce, which brings the price down for everyone.
Temu’s parent company, PDD Holdings, is a Shanghai-based commerce group with immense global sourcing and supply chain capabilities. It can negotiate for better prices with suppliers and pass those savings on to consumers. Plus, there are many, many brands selling their items on Temu, and they’re all competing with one another to offer the lowest prices. Most of the goods are shipped to consumers directly from China.
temu-legit-what-to-know-about-this-wildly-popular-shopping-app/” data-cms-ai=”0″Industry experts have found that this marketplace is legitimate and safe. It accepts secure payment methods like PayPal and ApplePay and delivers the goods (for the most part). However, like many online retail sites, it simply acts as a go-between that allows sellers to connect to customers, so there’s no guarantee of quality — although Temu does have protections in place if this happens.
Dale Dixon, Chief Innovation Officer at the Better Business Bureau, says the Temu app is one of the most popular apps right now; number three on Apple and number two on Google devices, and says customer ratings and reviews look pretty good as well.
“The average of those 700-plus customer reviews on Temu is two-point-five,” Dixon said. “We’re hearing more than 600 complaints just in the last year since Temu hit the marketplace. Most of those complaints are dealing with quality and delivery issues.”
That’s understandable since, as so many have become