Inside America's controversial cheap shopping app Temu rivalling Amazon's prices

13 June 2023 , 18:29
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The Temu app launched in the US in September 2022 and has exploded in popularity (Image: NurPhoto via Getty Images)
The Temu app launched in the US in September 2022 and has exploded in popularity (Image: NurPhoto via Getty Images)

A discount shopping app, which exploded in popularity thanks to TikTok, has taken the US by storm with its ultra-low prices and is proving a potential rival to e-shopping giant Amazon.

Temu is a shopping app which has become known as being the online megastore for seriously cheap products. From running shoes for less than $12 to wireless waterproof earbuds for under $5 and eyeshadow palette's for less than $3 - the app has it all.

The app launched in the US in September, and has exploded in popularity as hauls and reviews flooded social media - convincing perhaps sceptical customers of the store's credibility.

It's not just the generally cheap prices though, the online megastore is filled with discounts from spin-the-wheel to lightning deals.

While many stores such as Amazon offer two-day shipping, customers say Tamu's low prices make the wait of a week or two worth it. A constant cycle of gifts and discounts has also swayed compulsive shoppers to increase their habit.

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Inside America's controversial cheap shopping app Temu rivalling Amazon's pricesMany people are saying the app is a rival to Amazon (Future Publishing via Getty Images)

From beauty products to clothing and electronics, and even industrial tools - Tamu has everything you could think of at exceptionally low, or heavily slashed prices. Bright banners and ticking clocks encourage users to add items to their cart straight away to make the most of the deals.

Tamu has been downloaded millions of times in the US. Now the platform, with the tagline "shop like a billionaire" has made its way across the pond and launched in the UK.

One shopper, Serena Fuschi, has been shopping on Temu since around a month after it launched in the States. She sits in the top five per cent of the app's affiliate programme earners, having brought in $5,000 (£3,962) from recruiting new shoppers.

Speaking to NBC, she said: "The whole focus is getting new users, which is what heightened its popularity in the first place. It's genius marketing: Here, we'll send you a free air fryer if you refer five people to the app.

"Then those people may purchase something or they'll tell their friends."

Inside America's controversial cheap shopping app Temu rivalling Amazon's pricesTemu reportedly collects the same amount of data as Amazon (Photothek via Getty Images)

Putting the rivalry between Temu and Amazon head to head, Serena shares hauls on TikTok from her Alabama home, regularly putting Amazon products up against Temu's. She has a series dedicated to Amazon products which can be found cheaper on the discount app, as well as a collection of tips so users can make the most of the app and its deals.

There are concerns from some internet users about the emerging app and its privacy. However, while Temu does collect data, it does not collect more than the likes of Amazon.

The app is owned by parent company PDD Holdings, which moved its headquarters from China to Ireland in May 2023, meaning it must comply with US and EU data protection.

While PDD Holdings is the app's parent company, the app is also an offshoot of Chinese e-commerce giant Pinduoduo Inc, which reportedly gathers more data in its collection.

Pinduoduo has full access to contact, calendars, and photo albums along with social media accounts, chats and texts, according to USA Today.

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While there's a whole host of five-star reviews on TrustPilot for Temu, there have been recent complaints about the company on the Better Business Bureaus' website saying that items took weeks or even months to arrive, with some never showing up at all.

Fiona Leishman

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