June 6, 2023, 11:07 am | Read time: 4 minutes
A watch for 53 cents? Headphones for 1.09 euros or even a backpack for under 4 euros?! The Chinese online store Temu lures customers with such mega-bargains. But how legitimate can such an offer really be?
First things first: Temu is neither a fake shop nor an illegal phishing scheme, but a fundamentally legitimate online store. The almost absurdly cheap offers are part of Temu’s strategy to challenge industry giant Amazon. TECHBOOK took a closer look at the provider from China, as shopping on Temu is not entirely risk-free.
Background on the Chinese Online Store
Behind Temu is PDD Holdings, which moved its headquarters from Shanghai to Dublin in spring 2023, as reported by Fashion United. Ireland offers particularly favorable conditions for taxing technology companies. With this move, Temu follows industry giants like Apple, Meta, and Google, which are also based in Ireland.
Otherwise, Temu operates like any other online store: Payment methods include credit card, PayPal, Klarna, and Apple Pay. Those interested can also install the Temu app. So many people have done this that the Temu app has displaced ChatGPT and Shein from the top spot in the Play Store download charts. However, the many permissions the app requests are problematic. Unnecessary accesses, such as to the smartphone camera, should be blocked immediately. In the U.S., where Temu has been gaining traction since last fall, the Chinese online store has already surpassed its American competitor Amazon in popularity.
With its operations in Germany, France, Spain, Italy, the United Kingdom, and the Netherlands, Temu is now trying to conquer the European market. How sustainably and consciously one wants to shape their consumption behavior and whether they want to bear any risks when purchasing is up to each individual.
Read also: What to Know About the Online Store AliExpress
Advantages of the Temu Store
Temu has been available since 2022, including in the U.S. The online store launched here in spring 2023. Whether it can become a real competitor to Amazon in Germany remains to be seen. In any case, Temu offers several advantages.
- a wide range of offers, including fashion, electronics, cosmetics, household items, toys, and pet accessories
- affordable prices
- many discount promotions
- free shipping and free returns within 90 days
Temu advertises with the slogan “Shop Like a Billionaire” and positions its offers in the low or “budget-friendly” price segment. According to its own statements, Temu uses wholesale prices to reach as many customers as possible, following the motto: “More is more.”
However, unlike Amazon, the online store does not maintain large warehouses itself but only offers the digital marketplace between buyers and manufacturers. This means, on the one hand, that there are no additional intermediaries, keeping prices low. On the other hand, it also means that goods must be imported after purchase, which has some disadvantages.
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Disadvantages of Temu
In addition to the mentioned advantages, there are also some negative points to consider.
- longer delivery times (6-14 business days) compared to Amazon and other shops
- although shipping is free, import duties may apply
- low prices often mean lower quality
- lack of sustainability
- there are reports of ordered goods never arriving or arriving damaged, being of poor quality, or differing significantly from the online shop descriptions
- customer service does not seem to be reliably available in German
Especially on Trustpilot, negative reviews are piling up, although Temu still receives an “acceptable” rating (3.1 out of 5). For comparison: Amazon is rated even worse with 1.8 out of 5 as “poor.” It is noticeable, however, that many of the 5-star reviews for Temu contain discount codes and free credits. Another problem that could arise is brand counterfeits, as TECHBOOK discovered on the Wish platform. So if brand products are sold at significantly lower prices than in other stores or online shops, you should be suspicious and refrain from purchasing.
Read also: Consumer Center Warns About China Shop Temu
Even in terms of sustainability, Temu cannot convince, which is due to the company’s concept of buying and then selling as many products as possible worldwide for the lowest possible price. The short lifespan of many goods, long transport routes, and non-transparent production conditions prevent environmentally conscious shopping at Temu. When you call up individual products, the note “Temu is committed to ecological sustainability” appears. However, there is no further information about the “ecosystem partners” on the website. The company has not yet responded to our inquiry about this.
Sources
- Bayern 3 “Temu: Is the New China Shop Legitimate?” (accessed on 05/31/2023)
- Chip: “Is It Legitimate? Currently Most Popular Shopping App Attracts with Tiny Prices” (accessed on 05/31/2023)
- Giga: “Temu App: What Is It & Is It Legitimate?” (accessed on 05/31/2023)
- Temu: “About Temu” (accessed on 05/31/2023)