How TEMU is helping sellers to go global

In just two years, Temu, an e-commerce platform connecting consumers directly with manufacturers, has redefined the way we think about online shopping.

By streamlining supply chains, eliminating intermediaries, and leveraging advanced automation, technology and logistics, Temu is offering a truly unique shopping experience. It has expanded to over 80 markets globally since its debut in September 2022. It is a top Apple recommended app of 2024, and has one of the most visited e-commerce websites in the world.

This approach not only delivers a wide selection of quality products at affordable prices but also impacts global economies in many ways that benefit consumers and small businesses. This article will explore how Temu’s commitment to price-to-value advantage, variety and innovation, speed and user experience, its positive impact on small businesses, and global accessibility and how it helps reimagine the e-commerce industry.

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1. Price-to-value advantage

One of Temu’s most significant contributions to the online shopping landscape is its ability to offer unbeatable prices. This is made possible through its direct-from-factory model, which cuts out the middlemen and reduces costs associated with traditional supply chains. In conventional retail, products often pass through multiple intermediaries—wholesalers, distributors, and retailers—before reaching consumers. Each of these stages adds additional markups and costs, which are ultimately reflected in the final price of the product.

Temu, however, connects consumers directly with manufacturers, often bypassing multiple warehouses, fulfillment centers, and transportation costs. This direct shipping from factory to consumer reduces inventory burdens and fulfillment costs, allowing Temu to offer highly competitive prices. Moreover, the platform generates large economies of scale that further drives down costs.

The result is a price-to-value advantage that benefits consumers around the globe. For example, a 2024 study by the Centre for Economics and Business Research (Cebr) found that UK households could save as much as €3,597 (£3,000) annually by shopping on platforms like Temu. Whether it’s household essentials, electronics, or fashion, consumers are consistently able to purchase high-quality items at lower prices than they might find through other retail channels.

Key benefits:

Streamlined and flexible supply chain that minimizes the number of intermediaries and their associated costs, passing savings to consumers.
Economies of scale for manufacturers that can drive down their per-unit production costs, leading to improved efficiency, as well as for more favorable shipping rates.

2. Variety and innovation

Temu’s success is also due to its impressive variety of products and its constant focus on innovation. The platform offers a vast selection of over 200 product categories, ranging from everyday essentials like home goods, clothing, and electronics, to more niche items like hobby gadgets and specialized tools. By partnering with a wide range of manufacturers from around the world, Temu ensures that consumers have access to a diverse catalog of products that meets their varied needs.

What sets Temu apart, however, is its ability to bring innovative products to the market quickly. The way the platform directly connects manufacturers with consumers leads to improved production efficiency. This means that merchants are more responsive to shifting consumer preferences and can offer unique, trending products before they hit the mainstream market.

This streamlined approach keeps the product catalog not only catering to local demand and preference but also adaptive to latest trends. By supporting a more streamlined and flexible supply chain, Temu is able to provide consumers with a shopping experience tailored to their needs.

Key benefits:

Diverse product catalog that appeals to a wide range of consumers.
Improved manufacturing efficiency that enables quick adaptation to consumer demand and latest trends.
Direct access to innovative, quality products at affordable prices.

3. Speed and user experience

In addition to price and product variety, speed and user experience are critical factors in Temu’s success. The platform has worked diligently to streamline its shopping process, making it easier for consumers to find what they want.

Temu’s user-friendly interface is intuitive, with simple navigation, quick search functions, detailed product descriptions, including star ratings, customer reviews, and sales figures, to enhance transparency and support informed choices.

Temu also leverages real-time data to feature designations such as ‘Best Seller,’ ‘Top Rated,’ ‘Most Repurchased,’ ‘Direct From,’ and ‘Top Followed’ on product listings, guiding customers toward popular and trusted options. Whether you’re a seasoned online shopper or a first-time buyer, the experience is seamless and easy to navigate.

But what truly sets Temu apart is its fast delivery. Through strategic partnerships with global logistics providers, Temu has developed an expanded logistics network that ensures fast and reliable shipping.

In markets like Europe and the U.S., Temu has launched a“local-to-local” model, under which sellers can store inventory and manage their own logistics through local warehouses. This approach is especially advantageous for merchants offering larger items, such as furniture, as it enables faster delivery—sometimes within just one business day. Local-to-local sales could eventually account for 80% of total sales on Temu in Europe.

Temu’s commitment to speed doesn’t end with product delivery; the platform has also introduced a real-time tracking system, allowing consumers to monitor their orders every step of the way. This transparency fosters trust and enhances the overall shopping experience, as customers can easily see when their packages will arrive and make adjustments if necessary.

Key benefits:

Fast shipping with international logistics partners and local dispatch option in some markets.
Real-time tracking provides transparency and enhances trust.
Seamless user experience with easy navigation to help consumers make more informed decisions.

4. Positive impact on small businesses

Temu is not just a platform for large corporations; it also provides significant benefits for small businesses. Through its direct-from-factory model, small merchants gain access to Temu’s massive global customer base, which spans over 80 countries and regions. For many of these small businesses, Temu represents a new way to scale quickly and efficiently, offering them access to markets they might not have reached otherwise.

By handling logistics and after-sales services under the fully-managed model, Temu allows manufacturers to focus on what they do best – production. This improved specialization increases efficiency and further reduces costs along the supply chain. This scalability is essential for small merchants looking to compete in the global marketplace.

Key benefits:

Global exposure for small businesses and independent merchants.
Reduced operational costs that allow manufacturers to focus on the production itself.

5. Changing shopping habits with Temu

Temu has been a catalyst in changing shopping habits, particularly in how consumers view the real value of a product, product variety, and the overall shopping experience. The platform’s rise has coincided with a broader trend toward value-driven purchasing, where consumers are increasingly seeking out deals that offer both quality and affordability. Temu taps into this shift by offering competitive prices, diverse product options, and a hassle-free shopping experience.

In particular, Temu has proven its inclusiveness among consumers of all demographic. A 2023 survey in Germany found that one in four adults aged 16 to 65 had shopped on Temu in the past six months. Furthermore, elderly users have praised Temu’s reliable delivery system and affordable pricing, making it a go-to platform for those with limited mobility or access to traditional retail stores.

Temu’s direct-from-factory model is also favoured by the savvy shopper—one who is more likely to compare prices and choose platforms that offer the best value. This shift toward more conscious, budget-focused shopping behaviors is likely to have long-term implications for the future of online commerce, pushing other e-commerce giants to adapt or risk being left behind.

Key benefits:

Changing consumer expectations around affordability and value.
Promoting inclusiveness for online shopping with its appeal to consumers of all demographic who appreciate the increased option for quality and affordable products.
Value-conscious shopping driving demand for low-cost, high-quality goods.

6. Global accessibility

Since launching, Temu has expanded into over 80 countries and regions worldwide, including the Americas, Europe, the Middle East, Asia, Africa, and Oceania, covering all 27 EU member states. This broad reach allows the platform to serve a vast number of consumers from different cultures, economies, and shopping preferences.

This global accessibility is supported by Temu’s logistics network, which ensures that customers can receive their orders promptly, no matter where they are located. The platform’s local-to-local fulfillment model means that consumers in Europe, for instance, can receive locally-dispatched packages, reducing delivery times and further enhancing merchandise variety.

Temu’s ability to provide affordable products and services across such a diverse range of markets is a testament to its scalability and efficiency. In markets like Germany, where Temu has 16.3 million recipients, the company has proven that it can meet the needs of a wide consumer base, while maintaining the high levels of customer satisfaction that have helped it grow.

Key benefits:

Global reach with access to over 80 markets.
Local dispatch model in some markets ensures faster delivery and further enhances product variety.
Expanding into new markets while maintaining high customer satisfaction.

Conclusion

By connecting consumers directly with manufacturers, offering a broad range of products at affordable prices, and providing a user-friendly, efficient shopping experience, Temu is positioning itself as a new player in the global ecommerce market.