Temu Free Gift
Temu Free Gift - The most downloaded free app on the App Store and Google Play in the past two months isn't TikTok, YouTube or Instagram, but a shopping app that didn't exist four months ago. Temu offers deep discounts on many products, often shipped directly from factories or warehouses in China.
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Temu Free Gift
Apart from the extremely low prices, Temu can undoubtedly attribute its popularity to its strategy of giving away free stuff to users who promote the app on their social networks and sign up friends and family. But the company — the U.S. arm of Chinese e-commerce giant Pinduoduo — has also developed a reputation for undelivered packages, mysterious charges, incorrect orders and unresponsive customer service.
Temu has received over 30 complaints with the Better Business Bureau and has a BBB customer rating of less than 1.5 stars. "They make promises that they will keep, and people don't get their stuff when they need it," Melanie McGovern, BBB's director of public relations and social media, told TIME.
When contacted by TIME, the company did not directly respond to questions about consumer complaints or BBB concerns. Temu's business model — if it catches on — could also have significant implications for U.S. retailers and the global supply chain in the coming year. At first glance, Temu might leave some users questioning whether it's legit.
What Is Temu And How Does It Work?
In addition to very affordable consumer products, Temu boasts the ability to earn credits through Spin-the-Wheel games or when you convince your friends to join. Over the past two months, posts praising Themu have spread like wildfire on Facebook, Twitter and TikTok – though many of them use vivid language that seems to have been recycled from one post to the next.
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But for now, Temu is a real platform that offers a variety of genuine, deeply discounted products, from air fryers to Lenovo wireless headphones ($8.98), computer keyboards ($15) to clothing ($1.69 for five pairs of socks). Consumers turned to Temu this month for holiday shopping amid the highest inflation in a generation, making it one of the fastest-growing platforms in the US.
A better question is what didn't Temu sell. Users of Temu's website or app were immediately besieged with all sorts of deals: running shoes for $17.48, a universal key for $4.48, a talking toy hamster for $6.99. The banner boasts items up to 90% off retail prices thanks to a New Year sale.
The range of goods and prices is amazing, and the aesthetic of the site is something straight out of a virtual dollar store. But the strategy makes sense once you realize that Temu is a "sister company" of Chinese e-commerce giant Pinduoduo, which has been offering similar deals in China for the past few years.
What Does Temu Sell?
Pinduoduo has found success in China by selling heavily discounted products directly from producers to low-income buyers, as well as agricultural products to farmers. The company now has a market cap of $102 billion, and its share price has risen in a year when rivals such as Alibaba have been hit hard.
Pinduoduo launched Temu in September to dominate the US market, and Temu's website lists an office in downtown Boston. A Temu spokesperson responded to TIME's questions from its website: that the company's pricing is driven by "a deep network of merchants, logistics partners and [Pinduoduo's] ecosystem built over many years."
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Although Temu's prices are cheap, many new customers actually pay nothing. That's because Temu launched a social media campaign where the more you convince others to sign up, the more credits you get. This allowed some people to get enough credit to get things home without even giving them their credit card information.
It looks like they're being subsidized to be a loss leader to gain market share, which is not unlike what Amazon has been doing for a long time," said Douglas Schmidt, a computer science professor at Vanderbilt University. Brianna Luckey, who lives in Fort Worth, Texas, said she received $200 worth of items from Temu for free.
What Does Temu Sell?
He first heard about the app from a friend a month ago and was initially confused by it: "I know there are a lot of things going around that might not be legitimate," he says. "But there is." Lucky posted about Temu on Facebook, TikTok, and Snapchat and eventually convinced friends to join the app, earning tons of credits in the process.
She used it to order a ring of lights ($25.48) for her small plaster art business, Array of Aura's, as well as an oil diffuser ($5.48), some necklaces and a mouse and keyboard for her son ($19.98). Luke says the keyboard works well: "I don't think it's good quality. But it's good for free," he said.
So I'm grateful for that." Temu may have given Luke a lot without handing over any money, but the company got free publicity through Luke's social network in return. Teemu pitched the campaign as a way to bring communities together to save money: their slogan is "Team Up" The strategy seems to be working: when Lucky posted a photo of his Teemu shipment on Facebook, his post was soon flooded with 70 comments from his friends, mostly consisting of people who
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who were posting their own referral links in hopes that one of the comments on Luke's post, however, was less positive than the others. Julie Roper Malloy wrote that a package she ordered from Temu containing Christmas gifts never arrived, despite the company's promise to deliver them as soon as possible.
How Are People Getting Stuff For Free On Temu?
December 19. “Still waiting on my order from November! Thanks Temu, you ruined Christmas!” he wrote. In a series of Facebook messages to TIME, Roper Malloy said he spent $178 on gifts for Teemu's family, including two drones and makeup for his daughter. But things never came.
Roper Malloy said he has contacted the company several times for a refund, which has yet to happen. "I will definitely be more diligent about ordering online in the future," he wrote. [Update: Since this article was published, Roper Malloy has received his Temu orders and a refund from the company.] Roper Malloy isn't the only one who's had trouble ordering Temu.
Temu himself admitted that his orders take longer than Amazon's - usually 7-15 business days - because they come from "overseas warehouses". But Themu also seems to be struggling to deliver content in a larger time window. In October, the Boston branch of the Better Business Bureau opened a file on Temu and received 31 complaints about the website.
Temu currently has a C rating on the BBB, with an average user rating of 1.4 out of 5 stars, even out of 20 reviews. (Complaints are different from reviews, which don't reflect official BBB ratings.) BBB's McGovern says it's unusual for such a new company to receive so many complaints in such a short period of time.
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