The world of shopping has changed by leaps and bounds over the past several years, much more so in the past several decades. The COVID-19 pandemic worked to create a change in how we operate, pushing more and more people to do their shopping on the Internet. The rise of e-commerce has been a long time coming, and brands like Amazon, Wal-Mart, and Temu are doing their best to make sure that this change is here to stay, though they are all doing it in different ways.
Named after the concept of Team Up, Price Down, Temu incentivizes buyers and sellers to work together as part of a next-generation manufacturing system to create a catalog that is affordable, accessible, and profitable for everyone involved. With low-low prices and no intention of raising them, Temu has plenty to offer curious shoppers in a saturated market filled with options.
What Makes Temu Different?
Temu is a relatively young e-commerce giant that has been taking the world over since it first launched in 2022. Beginning with zero groundwork, the online e-tailer would go from zero unique visitors to more than 44.5 million unique visitors before the end of the year, according to the analytics at Comscore.
Temu’s growth has been incentivized by its low prices that have been generated by a manufacturing and marketing system markedly different from its competition. Temu utilizes a business model that hones in on data and supply chain analytics, helping companies to sell products at the best price possible while reducing prices and streamlining sales. Since November 2022, Temu has sat in the top spot of the App Store Downloads for its category.
How Are Temu’s Products SO Affordable?
Temu brings affordable products to the masses by streamlining the approach of its manufacturing systems. The company works directly with sellers by offering them access to advanced analytics and consumer insights right from their dashboards. By communicating these key details and insights to sellers, Temu works to match demand and supply together.
Through this system, sellers on Temu can learn which products are their most sought-after items, incentivizing more targeted production while diminishing excess procurement. Saving on consumer insights, market research, and web surveys provides brands with another layer of savings to drive down their overhead costs.
Anticipating Demand, Developing Savings
Ultimately, Temu works to put control back into the hands of buyers and sellers alike so that they can create value-added experiences for one another. The company incentives low prices while pushing buyers to become more involved in the overall process, leading to data-driven metrics that lead to even more lower-priced items.
As Temu’s collaborative system continues to excel, we expect it to be normalized in other areas of the e-commerce world. Through this system, the right seller can utilize data and strategy to invest less while producing better products and saving money along the way.