Temu's Super Bowl advertisement has made it one of the most talked-about e-commerce platforms in recent memory.
Pronounce it "tee-moo," Temu is a massive Chinese e-commerce company with over 900 million users that arrived in North America in late 2022. For those who are familiar with Chinese e-commerce giants, Temu is comparable to TaoBao. In essence, however, Temu is a marketplace that sounds a lot like Wish.com and even Amazon.com—a place where Chinese-based suppliers sell products directly to customers. We will examine the ways in which Temu differs (and does not differ) from Wish, and Amazon in this article.
In this article you will know:
- What Is Temu?
- Amazon VS. Wish.com VS. Temu
- How Is Wish.com and Temu distinctive?
- What Distinguishes Temu From Amazon?
- Conclusion
What Is Temu?
Temu wants you to think that they are a Boston-based business that was established in 2022. But let's be honest: TEMU is a Chinese company that has a US subsidiary.
The slogan, "Shop like a billionaire without being one," is similar to that of every other low-end mass retailer on the planet and refers to high-quality products at reasonable prices.
However, how is Temu able to charge such low prices? by permitting Chinese sellers to make direct sales to consumers.
Amazon VS. Wish.com VS. Temu
First, let's take a quick look at the key distinctions that Wish.com, Temu, and Amazon have in the table below.
How Is Wish.com and Temu distinctive?
Given how similar Temu and Wish.com are, let's start by talking about their differences.
Wish.com is a well-known brand that allows Chinese vendors to sell directly to customers, giving them the ability to offer low prices. Temu and Wish.com are likewise online stores. How does that signify? A marketplace is an online store where other sellers sell their products; the company itself (such as Temu or Wish.com) does not sell any products. Amazon is a cross between eBay and other marketplaces, but more on that later. eBay is a marketplace.
Wish and Temu are both Chinese seller-focused platforms, but one of the main distinctions between the two is where each company is based. Former Google engineers launched Wish.com, which has its headquarters in San Francisco and support from numerous American venture capitalists, including Jerry Yang. Temu on the other hand is, in all practicality, a wholly Chinese company.
Aside from origin country, Wish.com and Temu both let Chinese sellers sell straight to customers in the US and Canada. Both have incredibly low prices and free shipping. But Temu differs from Wish.com in the areas of shipping and returns.
Wish.com charges extra for shipping, but Temu includes it in the item price and offers free shipping. Wish.com is now marketing their free shipping as a temporary offer, but it is unclear if this will become a regular feature of their business strategy.
Wish.com only allows free returns for 30 days, and the customer is responsible for paying return shipping; Temu offers free returns for 90 days.
It's also important to consider Temu's general aesthetic in contrast to Wish. Temu has the vibe of an old-fashioned Chinese e-commerce site. Check out the comparison between TaoBao.com, the biggest online retailer in China, and Temu below.
Compare this to Wish.com, which is arguably more recognizable to American consumers due to its simpler, more minimalistic design. As an online retailer, I can attest that Wish.com's offerings have been eBay- and Amazon-ified, meaning they feature white backgrounds and minimal marketing gimmicks (i.e., overselling).
What Distinguishes Temu From Amazon?
The differences between Temu and Amazon are somewhat more pronounced than those between Wish, where it's difficult to discern many differences. There are still a lot of parallels, though.
The number of Chinese sellers, which most people will assume to be the biggest difference, isn't really that different at all. Although the majority of people believe that Amazon is an American company with mostly American sellers, in reality, nearly 65% of Amazon's sellers are based in China or Hong Kong.
The fact that Temu and Amazon are both marketplaces, their shipping policies, and their prices are the three main distinctions between the two companies.
Wish and Temu are both just marketplaces; neither company actually sells any of its goods. However, Amazon is a retailer as well as a marketplace, which means they sell other people's goods in addition to their own private label brands. This means that while Amazon resells these products, it is highly unlikely that you will find well-known brands like Apple or Nike on Temu or Wish (and if you do, they're probably fake).
Fulfillment and shipping methods represent yet another significant distinction between Temu and Amazon. The majority of items from Temu (and Wish, for that matter) are shipped from China using comparatively slow methods, whereas the majority of items from Amazon are shipped via Amazon's FBA program from the United States, with significantly faster shipping times.
Temu offers a slightly better return policy, allowing returns within 90 days with free return shipping. With Amazon, you can return an item or order within 30 days, and you don't have to pay for return shipping unless there is a problem (or, as many customers do, you lie about the item being defective).
The primary distinction between Temu and Amazon is ricing. Wish and Temu are comparatively more affordable for regular household items. We used the three websites to compare dryer cleaner prices. Temu, Wish, and Amazon are $2.78, $4, and $6.90, respectively.
The lower prices on Temu and Wish come at a price though. And that price difference is evident on shipping times. Amazon is typically weeks quicker than both Temu and Wish.
Conclusions
Temu is currently taking North America by storm and has consistently been one of the most downloaded apps in the App Store. The differences between Temu and Wish are fairly negligible with Temu currently offering, on average, lower prices than Wish. It remains to be seen if this will continue in the long term.
There are more significant distinctions between Temu and Amazon. When it comes to commodities, Amazon is usually more expensive, but it offers faster shipping and a larger assortment of well-known brands.
Do you believe Temu will remain around? Or do you believe it will eventually fade away?
