Temu is an online shopping option that ships products in China to most countries in the world.
Prices are kept low by shipping the goods direct from the manufacturer in the majority of cases
Will Temu eventually make a Profit?
It is said that Temu has not yet made any profit, and the reason is that many products are being sold at less than cost.
Their plan is for them to obtain a good market share before they change their marketing strategy and aim for a profit.
How much is the Temu minimum order value?
It starts at $15 for most customers, but then increases to $45 for many customers after a few weeks.
Delivery is free for all orders. This has become possible as “Australia Post is effectively subsidising deliveries from China”, as China is a developing nation, and needs subsidies such as these.
Chinese leader Xi Jinping is quoted as saying: “China has been and will always remain a member of developing countries.”
As Australia classes itself as a developed country, it will subside countries that are still developing, such as China.
Temu is now based in Boston, Massachusetts, USA, although is is owned by the China-based company,PDD Holdings Inc.