Inside the Secret Behind Temu: Team Up and Price Down for Better E-Commerce Experiences.


There have been few industry innovations more important than that of the e-commerce growth that has played out in front of us over the past two decades. Online shopping has fundamentally changed the way that we integrate our shopping needs into our daily lives, a system only exacerbated by the COVID-19 pandemic.

Established in 2022, Temu was brought forth to bring shoppers high-quality products at unbeatable low prices. An advertisement during the Super Bowl from Temu promised shoppers that they would be able to shop like a billionaire from the comfort of their mobile application.

Let’s dive into the world of Temu to get to know the system better and to see if it lives up to its promise.

Welcome to Temu: Team Up and Price Down.

Temu is, more than anything, a collaborative network that connects sellers with the marketing and manufacturing data they need in order to succeed. Temu supplies its manufacturers and sellers with unique insights and marketing research so that they can make better, smarter, and more informed decisions along the way.

Through its collaborative approach with sellers, Temu is able to minimize waste while reducing expenses and lowering costs along the way. A spokesperson for the consulting firm Kearney stated, “Temu might be exposing a white space in the market wherein brands have been producing at extremely low cost.”

Michael Felice, the Kearney spokesperson, went on to discuss how the team is utilizing an emphasis on the value chain in order to reduce the cost that has thus far been passed along as margin.

Temu’s own spokesperson responded to the claims in kind by stating, “They can produce quality prices at the most efficient costs as a result of the economies of scale and technological innovation they have built up over the years.”

How is Temu Operating?

Temu was opened in the aftermath of the COVID-19 pandemic, where they have begun operating out of Boston. Temu has contracts with partners, manufacturers, and postal carriers around the world to facilitate sales to areas including North America, New Zealand, Europe, and Australia.

The company is focused on optimizing its manufacturing and shipping systems so as to enhance cost efficiency, reducing waste while limiting exposure to excess inventory. Through this next-generation collaborative approach, Temu hopes that they will be able to engineer a paradigm change in the e-commerce industry.

Furthermore, Temu’s Next-Gen Manufacturing model works to effectively undercut the traditional marketing inefficiencies that many businesses have grown so used to over the years.

Pax Heber
the authorPax Heber