Temu offers users a platform to purchase mostly China-made products at lower prices than traditional retailers like Amazon. Though quality and shipping times may vary, the appealing price point drives billion-dollar spending from users. The viability of Temu relies on subsidized international shipping practices and the de minimis tariff exemption, which currently allows inexpensive imports without customs scrutiny. However, recent changes to trade policies may threaten these advantages, particularly an executive order from President Trump aimed at revising tariff exemptions, which could impact the e-commerce landscape.
The Temu proposition is simple: An app enables users to buy affordable products shipped from China, appealing to consumers despite occasional long shipping times.
Cheap products from Temu appeal to users, despite variable quality and shipping delays, leading to significant spending for both customers and merchants.
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