What is Temu? | How Does it Work

You must have seen the Temu ads all over social media and even when playing games but still wonder what it is about and how it works. So, before you start exploring the app or even clicking the buy button, we have some information regarding the shopping site.

At first, it may appear that Temu came out of nowhere. However, everything began in September 2022 when the company flooded the Internet, especially Facebook and Instagram, with advertisements. Temu is now famous for offering its products for extremely low prices, relentlessly helping consumers find those products.

The company’s retail app and website offer various products like outerwear, beads for crafting, power equipment, and gadgets. However, it has gained more popularity and is best known for its small household items and other products.

In this article, we will examine and explain how Temu works detailing some of the factors that you should consider when using the platform.

How is Temu Pronounced?

Temu’s Super Bowl ad cleared up how to say its name: it’s pronounced “teh-moo”, not “tee-moo” or “tea-moo.” The name means “team up,” but even big fans were getting it wrong until the ad set the record straight. Got it?

What is Temu and How Does it Work?

Temu is an online shopping site/app where you can buy different kinds of things at relatively low prices. It’s known for its flashy ads you see all over the internet, referral deals, and constant sales to get people on board.

You also can learn how to run ads on Facebook, and even Instagram ads for business owners just the way that Temu does.

You can start shopping on Temu by signing up on their website (www.temu.com) or downloading the app, which works on both iOS and Android. But be careful when downloading the app—make sure it’s safe. Use the Google Play Store or Apple Store to download.

Temu has over 29 categories of products, like clothes, beauty items, home gadgets, sports gear, pet supplies, and even toys. You can also earn “credits” to use on future purchases or get gifts by playing games on the app.

With its super-cheap prices and non-stop advertising, Temu has quickly become a favourite for many shoppers.

Who Owns Temu?

Temu is based in Boston and legally registered in Delaware, but it’s owned by PDD Holdings, a global e-commerce company started by Chinese billionaire Colin Huang. PDD Holdings also owns Pinduoduo, a popular online shopping platform in China. The company was founded in 2015 and recently moved its main office to Dublin, Ireland, in 2023.

By the end of last year, PDD Holdings became the most valuable Chinese company listed in the U.S., even beating Alibaba in market value. This success made Colin Huang the second-richest person in China. However, the company’s stock has dropped recently and is down by 10% this year.

Where Does Temu Sell?

Temu first launched in the U.S. in 2022 and quickly expanded to Canada, Australia, and New Zealand. By 2023, it started serving European countries like the U.K., France, Germany, Italy, Spain, and the Netherlands. Later, it moved into Japan and South Korea, and by September, it had reached the Philippines as part of its push into Southeast Asia.

Today, Temu operates in 80 markets worldwide, growing fast in a short time. It recently entered the Nigerian market, where it’s now competing with platforms like Jumia. Jumia’s share price fell after poor revenues in Q2 2024 and now has even cut back on ads to focus on making profits. But while Temu seems ready to dominate, some people have raised concerns about the quality of its services.

Is it Safe to Shop on Temu?

People are still unsure if using Temu is completely safe. Grizzly Research, a company that investigates big businesses, has claimed that Temu’s app may contain malware and spyware. This could allow hackers or “bad actors” to access almost all the data on your phone, according to their report.

The American government has also raised concerns about Temu’s data security. This is partly because its parent company, Pinduoduo, had its app removed from Google Play for containing malware. However, knowing how to avoid malware when downloading apps could help you.

If you’re worried about your personal data being collected or shared but still want to shop on Temu, it’s safer to use their website instead of downloading the app. Most of the accusations about hidden malware are focused on the app, not the website.

However, because of these serious allegations about how Temu handles data, you might want to think twice before giving them your details. To place an order, you’ll need to provide your name, address, and payment information, which could be at risk if the claims are true. For some, it may be best to avoid Temu altogether to stay on the safe side.

That being said, there’s no solid proof yet that Temu is a scam or that it has shared customer data. Temu has firmly denied these accusations and insists it does not sell customer information.

Is Temu Legitimate? How Reliable is it?

A recent survey of over 500 Temu users, as a result of their shopping experience on the platform, carried out by Choice.com gave us a clear picture of what it’s like to shop on Temu.

Most people in the survey said they bought home or kitchen items (62%) and clothing (50%), making these the most popular categories. Other common purchases included jewelry and accessories (31%), art and craft supplies (28%), and toys and games (27%). Overall, about 83% of Temu shoppers said they were happy with the items they bought.

The phrase “you get what you pay for” came up often among the Temu shoppers who partook in the survey. Many felt that the quality of the products matched their expectations, which were usually modest because of the low prices. Despite this, most shoppers found the items good enough for the price they paid.

Delivery speed was another highlight. Many customers were pleased with how quickly their orders arrived, and several said the refund process was easy and fast if something went wrong.

When asked if they’d shop on Temu again, 77% of respondents said yes. Additionally, 73% said they would recommend Temu to others, showing that most shoppers had a positive experience overall.

Why Is Temu So Cheap?

Temu’s prices are shockingly low, which will grab your attention and even tempt you to fill your cart with deals that seem too good to be true. These incredibly cheap prices suggest that Temu is focusing on attracting as many shoppers as possible, even if it means losing money on sales to grow quickly. That is why Temu’s sales skyrocketed following its International expansion.

While Temu’s website says it was founded in Boston, the company is owned by PDD Holdings, a giant e-commerce group with deep pockets. PDD Holdings recently moved its headquarters from China to Ireland, likely to avoid issues if U.S. scrutiny of Chinese-owned apps increases.

Temu also saves a lot of money by shipping products directly from Chinese factories to consumers, helping it bypass tariffs and keep prices low. As a result, Nigerians can decide to go into mini importation business. It’s also a lucrative one.

However, there’s a bigger concern: forced labour. Temu doesn’t make its products but ships items straight from Chinese factories. A report from the House Select Committee on the Chinese Communist Party stated that Temu doesn’t have a system to ensure it complies with the Uyghur Forced Labor Prevention Act (UFLPA).

This means products made using forced labor are likely being shipped to the U.S. regularly, violating the UFLPA.

While Temu’s prices may seem like a dream come true, these ethical issues raise serious questions about the true cost of shopping there.

Does Temu Steal or Sell Your Data?

All e-commerce apps collect some of your personal data as soon as you create an account or visit their home page. Such data includes your location, address, device ID, search history, payment details, and even your contacts.

Some apps use this data to track your activity across other apps and websites, analyze their performance, and target you with ads. While some of this data is directly tied to your identity, other parts aren’t—how much is linked depends on the app you’re using. In recent years, people have become more worried about how apps store and use their data, especially when it comes to Chinese-based apps.

According to Temu’s privacy policy, the company says it doesn’t “sell” your data for money. However, it does share your information with shipping partners, marketing services, and research companies, which helps Temu make money indirectly.

Temu also shares your data with third-party companies for advertising, marketing, and analytics purposes to target you with ads. In its privacy policy, Temu even admits this data sharing could be seen as “selling” under certain laws.

While concerns about Temu’s data sharing are valid, it’s worth remembering that most apps collect and store your data with very few limits. This is just how the online shopping world works today.

If I Order Something on Temu, Will It Ever Arrive?

Temu’s delivery isn’t as fast as Amazon Prime’s two-day shipping. Temu says that orders usually take between six to 22 days with standard shipping, or four to 11 days with express shipping, but this can often be longer.

However, if your order is delayed, you might receive credits for future purchases. When you’re notified about a delay, you’ll see a button to “urge shipment,” but it probably won’t do much. Just remember, the site is gamified, which means it’s designed to make you feel more engaged with it.

Temu has now added a feature that lets you filter search results to find items closer to you. At the top of the page, you’ll see an option called “Local Warehouse.” This makes it easier to find products that will ship to you faster, helping to reduce some of the long wait times.

FAQs

What is Temu and is it legit?

Temu is not a scam; it’s a legitimate e-commerce platform owned by the Chinese company PDD Holdings, connecting buyers with sellers, mostly from China. However, like many large online marketplaces, it can attract scammers who may try to trick shoppers. So, while it’s real, you still need to be careful.

How does Temu work?

Temu works as a “third-party online marketplace,” meaning it doesn’t make or supply most of the products listed on its site. Instead, it connects buyers with sellers. This setup isn’t necessarily a problem, but it’s important to understand how it works when you’re shopping.

Why is Temu so cheap?

The reason Temu’s prices are so low is that it cuts out middlemen. According to Temu, by connecting consumers directly with sellers, it can offer products at a much lower price. However, since most of the products come from third-party sellers, there are concerns about the ethical side of this approach, especially regarding product quality.

What are the risks of Temu?

One of the risks of shopping on Temu is that its business model allows counterfeit goods to slip through. Since Temu isn’t officially connected to big, trusted brands, there are worries about the quality of products and concerns over potential copyright violations, as noted in a 2023 report from the U.S.-China Economic and Security Review Commission.

Can I trust Temu?

You can trust Temu in the same way you would trust other online stores. It has policies and measures to protect your rights and your online safety.

Conclusion

Before you buy from Temu, you may wonder if it’s safe, if the items are real, or if the website steals your data. These are frequently asked questions, and we are glad to have explained them in detail.

Temu is an online shopping megastore offering almost any product you can imagine. You can take your chance to buy car accessories, clothing, kitchen appliances, electronics, outdoor furniture, power tools, baby clothes, and everything from there.

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