Temu Review - The Definitive Guide for Shopping on Temu in New Zealand

Updated 31 October 2024

Summary

Since its launch in 2022, Temu has aggressively marketed itself as offering incredibly cheap and reasonably high quality items.
Temu is a global e-commerce platform known for offering a wide array of products across various categories. It has quickly grown in popularity due to its user-friendly and highly gamified interface, competitive pricing, and extensive product range.
This October 2024 RNZ article reports on the popularity of Temu throughout New Zealand, however it's not without its limits such as having to buy multiple items, issues around Malware lawsuits, allegations of Credit Card Fraud on Reddit and other issues.
Generally, New Zealanders enjoy the near-endless selection of goods for sale which is far superior to any $2 shop or retailer locally. However, users still need to navigate the arguably aggressive promotions, countdown timers and threats that items will sell out or become unavailable in seconds. This can become annoying.
Overall, Temu is not without its challenges – we have published this review to review the website and its offering in detail to help you decide if you want to use it.

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Temu’s Origins and Pricing Strategy Explained

Temu, a relatively new player in the global e-commerce market, started its operations in September 2022. The platform was launched by PDD Holdings Inc., a multinational commerce group headquartered in Shanghai, China. PDD Holdings is publicly listed on the NASDAQ.

PDD Holdings Inc. is also the parent company of Pinduoduo, one of China’s largest e-commerce platforms known for its group-buying model and social commerce features. This connection to a major e-commerce giant provided Temu with a solid foundation and a wealth of expertise in the online retail space.

What does the word Temu mean? What’s the purpose of it?
Temu was created with the mission to democratise commerce and make high-quality products accessible to everyone. The name "Temu" is derived from the phrase "Team Up, Price Down," reflecting the company’s ethos of leveraging collective buying power to offer lower prices to consumers. This concept aligns with the parent company Pinduoduo’s successful strategy of utilising social commerce and group buying to drive down costs.

When did Temu come to New Zealand?
Temu’s entry into the New Zealand in March 2023 was argubly a welcome for many New Zealanders that were looking for cheaper alternatives in a time of high inflation and cost of living. Temu is not a small-scale operation - it's a company looking to get significant market share from Amazon, Aliexpress and other business-to-consumer platforms by shipping low cost consumer products from China to the world. New Zealand is not a focus area for Temu given the small population size.

Why is Temu Selling Items so Cheaply?

This is a concern among most people who see Temu’s adverts, with pricing rivalling or being lower than low cost competitors like Aliexpress LINK and Shein LINK. There are three main reasons why Temu can offer such low prices:

1. Loss Leader Strategy:

Temu may be employing a loss leader strategy as a new platform to acquire customers. This means they’re selling certain products at a loss or minimal profit margin to attract a large number of customers to their platform.
Once customers are on the platform, Temu can then upsell higher-margin products and benefit from repeat purchases and customer loyalty.
By cutting costs lower than costs (and what competitors are offering), they‘re able to quickly gain market share and visibility in a competitive market. In the long term, Temu is likely to make a profit on these customers. The initial losses or low profits are offset by long-term customer retention and increased sales volumes over time.

2. C2M (Customer to Manufacturer) Model:

Temu leverages a Customer to Manufacturer (C2M) model, which involves bulk purchasing directly from factories at rock-bottom prices. This model eliminates middlemen and reduces costs significantly.
Additionally, products are only shipped to New Zealand when a certain minimum volume is reached, optimising shipping costs and ensuring economies of scale. This is why users are encouraged to buy more than one item to complete an order.

3. Technology Investment:

Temu benefits from the technological advancements and innovative features developed by PDD Holdings Inc. and the insights gained from PinDuoDuo in China (which has almost a billion users using the app in China).
The platform employs advanced algorithms and data analytics to offer personalised product recommendations largely driven by AI, streamline the shopping experience, and optimise logistics and supply chain management. This technological edge allows Temu to stay competitive and deliver a seamless shopping experience to its users.

Is Temu Legitimate? Is it Safe to Use, and Will I be Scammed?

Our view is simple - on a whole, Temu is safe. While there are many news articles critical of their manufacturing processes, there are millions of customers buying Temu around the world. Having said that, when it comes to shopping online, safety and legitimacy are crucial considerations. A Reddit post in September 2024 is an example of such concerns, although no specific negative reports were noted.

Temu is a big business, and scamming customers or harvesting credit card details is not part of the strategy. A few reasons why Temu is safe to use include:

Temu is run by a NASDAQ publicly-listed company where media stories around negative shopper experiences will affect the share price and reputation.
Temu operates globally with 150+ million monthly active users (with 50+ million coming from the USA).
Temu is the western version of PinDuoDuo (a similar shopping app for Chinese consumers with almost a billion users) and a direct challenger to Amazon given the value of the industry.

If you’re still uneasy about purchasing on Temu, we suggest the following course of action:

Using non-main email accounts (in case of any issues or hacks).
Using virtual or one-off cards for transactions.
Using a credit card rather than a debit card (in case of fraud – you can request a chargeback to get your funds back as your credit card provider is taking the risk in the case of fraud).

What are the different product categories Temu offers?
Temu boasts a diverse range of product categories and offers a few popular sections that most New Zealanders will be interested in:

The electronics section offers everything from smartphones to laptops and accessories.
The fashion category includes featuring clothing, footwear, and accessories for men, women, and children.
Home and kitchen offers a wide array of furniture, kitchen appliances, and decor items.
Health and beauty includes skincare, makeup, personal care, and health supplement products. Temu features both well-known brands and niche products.
Sports and outdoors category offers equipment and apparel for various activities such as hiking, camping, cycling, and fitness.
Other areas: Temu also offers products in niche areas like pet supplies, automotive accessories, books, and more.

The Temu shopping app experience:

Our view: The app is addictive as the shopping experience on Temu is designed to be seamless, user-friendly and extremely gamified. While a double-edged sword, having an app that’s providing such time-sensitive and cheap products in a game-like way can be enjoyable (but also means many shoppers might spend a lot more than they initially expect).
On the app categories itself, searching for products is easy with the search bar at the top of the app. You can filter results by category, price, brand, and other criteria to narrow down your search.
Each product page provides detailed information, including specifications, pricing, and shipping options. User reviews and ratings are also available, offering insights into the product’s quality and performance.
If you find a product you like, you can add it to your cart for immediate purchase or save it to your wishlist for future reference. The cart icon on the bottom navigation bar allows you to view and manage your selections.
Temu uses advanced algorithms to provide personalised product recommendations based on your browsing and purchase history, helping you discover new products that match your preferences.

Why is Temu so addictive?

The biggest reason why Temu is so addictive is due to the way the app is designed. With many pop-up sales, bright colours and in-app games such as spinning wheels that incentivise you to continue opening and using the app (even when you’re not placing orders), Temu tries to create a feedback loop to keep you coming back and using the app.
Additionally, the app leverages AI to identify what products you’re most likely to spend on given how long you look at certain products, your demographic (e.g. what age and gender you are) and through your prior spending history with Temu.
In summary, Temu is addictive - this BBC article from April 2024 explains the issues, and our research team has viewed New Zealanders explaining how their employers, parents and siblings have become addicted. While the costs per order may be low, the totals can add up over time. Temu makes money, but addicts are arguably filling their homes with items they may not have a need for long-term.

Pros and Cons of Temu

Pros:

1. Massive selection of goods
One of the primary benefits is the extensive selection of products available on the platform. Temu offers a broad range of items across various categories, including electronics, fashion, home goods, beauty products, and more. This variety makes it a convenient one-stop shop for consumers looking to fulfill multiple shopping needs without having to navigate different websites. The extensive product range ensures that users can find almost anything they need in one place, saving both time and effort.

Extremely discounted pricing (likely lower than all the other competitors)
Another notable advantage of using Temu is its competitive pricing. Temu often provides products at affordable prices, making it an attractive option for budget-conscious shoppers. The platform frequently runs sales, promotions, and special offers that provide additional savings, further enhancing its appeal. By offering discounts and deals, Temu helps users get the best value for their money, allowing them to purchase high-quality products without breaking the bank. This commitment to affordability makes Temu a popular choice among consumers who are looking for cost-effective shopping solutions.
Extremely fun (and borderline addictive) app experience
The user-friendly interface of Temu is another significant advantage. Using Temu feels like you’re playing a video game (that rewards you in products or gadgets).The platform is designed to be intuitive and easy to navigate, with a layout that allows users to find what they are looking for quickly and efficiently. The search functionalities are robust, making it simple to locate specific products or browse through different categories. Additionally, Temu provides personalised product recommendations based on the user’s browsing and purchase history, enhancing the shopping experience by suggesting items that are likely to be of interest. This level of personalisation helps users discover new products that they might not have found otherwise.
Fast and efficient shopping experience
Convenience is a key factor that Temu offers to its users. The platform has a mobile app that allows customers to shop from their smartphones, providing a seamless shopping experience on the go. This means that users can browse, compare, and purchase products from anywhere at any time, making shopping more flexible and accessible. Temu also supports a variety of payment methods, including credit and debit cards, digital wallets, and other online payment systems, which makes the checkout process smooth and hassle-free.
Superior returns and refund policies versus competitors
Return and refund policies on Temu are designed to be hassle-free, providing users with peace of mind when making purchases. If a product does not meet expectations or has any issues, users can return it for a refund or exchange. This flexibility is a significant advantage, as it reduces the risk associated with online shopping and encourages more people to use the platform.

Cons:
While Temu offers many advantages, it also comes with several drawbacks that users should consider:

The quality of the products is often “Hit or Miss”
One of the primary cons is the potential for variable product quality. Given the vast range of items available on the platform, consistency in quality can be a challenge. Some users have reported receiving products that do not match the descriptions or images provided on the site. This inconsistency can lead to disappointment and frustration, especially when the purchased items do not meet expectations.
Risk of overspending on things you don’t need or really want
Temu’s gamified app interface is so addicting, coupled with the extremely dirt cheap pricing, can lead shoppers to spend wildly more than they initially expected to spend. You may look for a $5 baseball cap and end up with a shopping cart of $125 worth of stuff you don’t need, let along want.
Our view is simple: Using Temu increases the risk of buying a bunch of tat that fills your home and, shortly afterwards, a landfill.
Shipping delays sometimes occur
Another significant drawback of Temu is the shipping time, which can be lengthy, particularly for international orders. Unlike some other e-commerce giants that offer expedited shipping options, Temu's delivery times can be unpredictable and often longer than anticipated. This delay can be inconvenient for users who need their purchases urgently. Additionally, tracking information might not always be updated promptly, leaving customers in the dark about the status of their orders.
Having said that, the silver lining is that any delays outside the delivery window (normally 14 days) entitle you to a voucher or credit.
Non-responsive or difficult customer service
Customer service, although available through multiple channels, has been criticised for its inconsistency. Some users have experienced difficulties in getting timely and satisfactory responses to their queries or issues. This lack of reliable customer support can be a major drawback, particularly when dealing with returns, refunds, or product issues. Effective customer service is crucial for maintaining customer trust, and any shortcomings in this area can significantly impact user satisfaction.
Risk of fake products
Another con of using Temu is the potential for counterfeit or substandard products. Given the vast number of sellers on the platform, it is possible for counterfeit items to slip through the cracks. This issue can be particularly problematic in categories such as electronics, fashion, and beauty products, where the authenticity and quality of items are crucial.
Confusing layout
The user interface, while generally user-friendly, can sometimes be cluttered and overwhelming, particularly for new users. The sheer volume of products and categories can make it difficult to navigate and find specific items. Additionally, the personalised recommendations, while useful, can sometimes be overly aggressive, leading to a less enjoyable browsing experience.
Privacy and security concerns
Privacy and security concerns are also notable cons when using Temu (which have been flagged in the mainstream media).
As with any online shopping platform, there is always a risk of data breaches or unauthorised access to personal information. Users must be cautious about the information they share and ensure that their payment details are securely handled. Any lapses in data security can lead to significant issues, including identity theft and financial loss.

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Temu’s Shipping and Delivery Options, Security Measures and Customer Feedback and Support

Know This: Shipping and delivery options on Temu are designed to cater to different needs.

The platform offers standard shipping, which typically takes 7-14 business days, and express shipping, which provides faster delivery within 3-7 business days. Delivery times vary based on the shipping method chosen and the product’s availability. Temu provides estimated delivery dates at the checkout stage, helping you plan your purchases accordingly.

Once your order is shipped, you can track its status through the app. The tracking feature provides real-time updates, ensuring you know exactly when to expect your delivery. In case of delays, Temu’s customer service is available to assist you, providing updates on the status of your order and offering solutions if there are significant delays.

Temu’s security measures
Temu prioritises user security and employs several measures to protect customer data and transactions:

Encryption technology: Temu uses advanced encryption technologies to ensure that all personal and payment information entered on the site is secure. This includes SSL (Secure Socket Layer) encryption, which is a standard security technology for establishing an encrypted link between a server and a client.
Secure payment gateways: The platform offers secure payment options, including credit/debit cards, PayPal, Google Pay, and Apple Pay. These payment methods are processed through secure gateways, adding an extra layer of protection for financial transactions.
Privacy policies: Temu has a clear and detailed privacy policy outlining how user data is collected, used, and protected. The platform is committed to safeguarding personal information and complies with relevant data protection regulations.

Temu’s customer reviews:
Temu has a mix of positive, negative and constructive reviews from users on various review sites globally.
Many customers appreciate the extremely competitive pricing, free shipping (at very low minimum spend amounts – although that has increased in recent months), extensive product range, and user-friendly interface. However, like any large e-commerce platform, there are occasional complaints related to shipping times, product quality, or customer service. However, if there are any product quality issues, Temu is quick to offer either full refunds on products or credit/vouchers for late delivery or shipping delays.

Temu’s customer support:
Temu offers multiple channels for customer support, including live chat, email, and phone support. Live chat is available within the app for real-time assistance, while email support is ideal for detailed inquiries. Phone support is available for urgent issues.

The platform’s comprehensive FAQ LINK and Help Center LINK provide additional resources for users to resolve common issues independently. In cases where disputes arise, Temu has a clear process for handling returns, refunds, and other customer complaints, ensuring that users have recourse if they encounter problems.

Unlike other platforms like Aliexpress LINK, Temu handles most of the queries or issues related to shipping, meaning you’ll likely be dealing directly with a Temu representative. In contrast, platforms like Aliexpress get you to negotiate or message one of the thousands of random sellers on the platform – which can be problematic.

Temu has a straightforward returns and refunds policy. Most products can be returned within 30 days of delivery, provided they are in their original condition and packaging. Once the return is processed, refunds are issued to the original payment method within 5-7 business days.

Temu Must-Know Facts

Many products sold by most retail or e-commerce stores are coming from China

Whether you buy products from Aliexpress, Shein, Temu, Amazon, K-Mart or The Warehouse, many products are likely produced in the same factories in China (unless explicitly sold as “Made in NZ” or “Made in the USA” – although these are likely far more expensive products given the high cost of manufacturing in these countries).

At the end of the day, if the products are all coming from the same place, the difference comes down to the price you pay, the time it takes to get to you and the service you get while using the app or shopping experience.

Temu has a minimum spend before getting free shipping.

While Temu often touts free shipping or extremely dirt cheap prices through discounts or promotions, there is a minimum amount you’ll need to spend to receive these perks (usually NZ$35 – 40). The main reason for this is that it likely costs around $10 – 15 in shipping costs to ship the products from China to New Zealand, so if you were getting free shipping on $1 socks then Temu would almost certainly lose money.

Temu’s has been specifically and designed and gamified to be addicting – be careful

Try not to spend too much time on Temu. While it’s a great perk to be able to download a free app that gives you access to cheap goods in rapid timeframes, know that absolutely everything in the app is being analysed and optimised to try and get you to stay on the app and spend more money.

You’re literally fighting billions of dollars of investment into AI and machine learning to optimise and maximise the amount of time you spend on the app. Knowing this is what you’re up against and setting restrictions (whether monetary limits per month on Temu or time limits on things like app limits on iPhone) can be helpful.

Temu has a strong returns policy.

Temu will give you a full refund or credit if your product is NOT delivered within the delivery window (usually within 1-2 weeks depending on what you buy). Additionally, when returning products, Temu often just lets you keep the product given the large amount of time, effort and cost it takes to ship a cheap good back to China. This is a silver lining where maybe your product is in not perfect condition but usable condition and you go through the returns policy process whereby you don’t have to return the good but you’re able to get a full refund – you effectively get the good for free.

Whether you buy through Temu or its competitors, the goods are usually still made in China.

Many products purchased on E-Commerce sites like Aliexpress, Shein, Amazon, Wish and Temu likely all come from China. Ultimately, the front-end interface of WHERE you buy the goods doesn’t matter as much as the QUALITY of the products and the PRICE you pay for those products.

Temu’s growth and acceleration has been nothing short of exponential.

Starting from nothing in 2022 to hundreds of millions of users and billions of dollars of gross merchandise value is an incredible growth story – especially competing against the huge behemoths like Amazon, Alibaba and Shein. Temu’s growth is a sign that their product, technology and strategy are all aligned with consumers.

Frequently Asked Questions

How do I return a product on Temu?

To return a product, go to the "Orders" section, select the item you wish to return, and follow the prompts to initiate the return process. Often, if the product is below a certain value, Temu will just let you keep the product and they’ll refund you (rather than get you to ship the product back to the manufacturer in China).

Are there any membership fees on Temu?

No, Temu does not charge any membership fees. The app offers discounts and promotions accessible to all users without any additional costs.

How can I get the Temu App?

Setting up Temu is a straightforward process.

To begin, you need to download the app, which is available for both Android LINK and iOS LINK platforms. You can find the app on Google Play Store and Apple App Store by searching for "Temu." Once downloaded, open the app and select your preferred language to get started. The registration process is simple and user-friendly. You can register using your email address or phone number.

Alternatively, you can sign up using your Google or Facebook account for quicker access. After entering your details, complete the verification process by entering the code sent to your email or phone. Finally, set up your profile by filling in your name, address, and preferred payment methods.

The app's interface is clean and intuitive, with the home screen showcasing trending products, flash sales, and personalised recommendations. The bottom navigation bar includes tabs for Home, Categories, Cart, Orders, and Account, making it easy to switch between different sections.

How does Temu compare to other shopping apps?

When comparing Temu to other shopping apps like Amazon and eBay, it holds its own with its competitive pricing, a New Zealand focus and an extensive product range. Unlike Amazon, which often focuses on prime memberships for benefits, Temu offers discounts and promotions accessible to all users. Compared to eBay, Temu provides a more consistent shopping experience with new products directly from manufacturers, as opposed to the auction and resale model of eBay. Additionally, Temu’s focus on the New Zealand market allows it to offer localised products and services that better meet the needs of local shoppers.