The ultra-cheap Chinese shopping site Temu is becoming the new online dollar store

By avi maxwel / in , , , , , , , /

Temu, which is based in Boston, Massachusetts, is a subsidiary of Chinese commerce company PDD Holdings.STEFANI REYNOLDS/AFP via Getty Images

  • Temu is the internet’s new discount store with bargain prices that rival dollar chains.

  • It’s run as a marketplace where sellers, who are mostly based in China, sell directly to consumers.

  • Since its US launch in September, it has become the most downloaded app on Google Play and Apple.

Temu is fast becoming the internet’s local dollar store.

This Chinese-owned, but US-headquartered e-commerce platform, is run as a marketplace where sellers – who are predominantly based in China – sell products to customers in the US, Canada, Europe, and Australia. It consists of an app and website and has made waves in the US since its launch in Sept.

Its splashy marketing campaigns – including two 30-second spots at this year’s Superbowl, which were estimated to cost $14 million – set out to convince shoppers that it’s possible “to shop like a billionaire” even when you’re penny-pinching.

And it seems to be working. Temu’s app sped past Amazon, TikTok, and Instagram to reach the top of the download charts on both apples and Google Payand its ultra-low prices have made it a prime target for social media “haul” videos where consumers are dubbing it as the US’ new version of the dollar store.

‘If Amazon and Dollar Tree had a baby it would be Temu’

Almost everything on Temu’s website and app is geared toward deals and discounts. There are banners prompting shoppers to browse “lightning deals,” and each item has a percentage discount next to it – which is often as much as 80% off. It’s unclear what this discount actually refers to, and a spokesperson for Temu did not clarify when contacted by Insider.

Consumers can also search for items under $1, which pulls up a whole host of products across its various categories from fashion and homeware to electronics and pet supplies. Most of these products would not look out of place at a dollar store.

“If Amazon and Dollar Tree had a baby it would be Temu,” one Twitter commenter wrote. “Temu is basically an online dollar store,” another said.

Though its ambitions are bigger than defeating the US dollar store segment – ​​experts say it wants to become China’s first major player in the online shopping space and take on Amazon – its in prime position to fill a void in the discount market by serving a customer who hasn’t previously been able to buy such cheap goods online.

In the past, dollar stores have been somewhat sheltered from the rise of e-commerce because they were offering a budget shopping experience that wasn’t offered in the same way online. But if Temu has found a way to replicate these prices and make it more convenient for shoppers, where does that leave these dollar chains?

“You can imagine a scenario where a customer is getting their keys to drive

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