When was the last time that you ordered something on the Internet? The odds are pretty good that online shopping has been a significant aspect of your buying endeavors if you have purchased anything in the past couple of years. Whether driven to online shopping through necessity (health) or the pandemic, access to affordable products has never been more convenient or accessible. So what exactly is the Boston-based team at Temu doing that makes them stand out head-and-shoulders from the rest?
Team Up, Price Down With Temu.
Sometimes, the quickest way to make a dollar is by saving a dollar for someone else. Temu works within this idea and has imbued it into its very name. Temu stands for Team Up, Price Down and it embodies the very heart of the company itself. To accomplish its goal of lowering prices for everyone who shops on its platform, Temu has had to implement a pivotal three-step process.
First and foremost, Temu works with data-driven analytics and intense marketing research so as to prep its sellers on what they should be selling as well as how much they should be stocking. These metrics and data-driven insights are available through Temu and accessible to sellers. The design will anticipate demand and a collaborative approach will accomplish the best outcome.
Second, Temu works with its optimized datasets to bring lower prices to the catalog that they have accessible on the internet. Lower-priced items have the habit of reaching more consumers which in turn leads to higher sales, better numbers, and increased profit for brands while saving on their marketing costs.
Finally, this improved ROI will increase sales and overhead while reducing waste along the way. Sellers also gain key market insights as they continue to push forward in this new data and strategy-driven paradigm.
Through the Temu system, sellers can minimize their overhead while maximizing their profits, all while undercutting competitors by offering best-in-class prices.
Changing the Manufacturing Space
Finally, Temu has put itself into a competitive space with other e-commerce giants thanks to its fluid approach to manufacturing. In the same way that Walmart maximized efficacy through its scanner and automation systems, Temu hopes to change the game with its streamlined manufacturing systems. Temu hopes to continue collaborating directly with sellers as they develop product ideas and designs.
Once Temu has teamed up with its seller on a product and has helped it become the best it can be, Temu anticipates and meets consumer demand before delivering its products through any number of global partners including FedEx, UPS, and USPS. Temu hopes that this multi-tiered approach to price reduction can sway the way people look at lower-priced goods, leading more to the impression of affordability rather than that of low quality.
Since 2022 alone, Temu has risen from 0 unique registered visitors per month to a number that exceeds 40 million. Time is all that remains to see whether Temu continues its meteoric growth.