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- Temu offers low prices through several strategies:
- 1. Direct-to-Consumer Shipping: Products are shipped directly from manufacturers in China, cutting out middlemen and reducing costs.
- 2. Lower Seller Fees: Sellers on Temu pay minimal fees compared to platforms like Amazon or eBay, leading to cheaper prices for customers.
- 3. De Minimis Rule: Most products fall under the $800 threshold for duty-free imports, avoiding additional tariffs and taxes.
- 4. Chinese Government Subsidies: Temu benefits from export subsidies, helping it compete globally by offering extremely low prices.
- 5. Economies of Scale: Bulk production lowers costs, allowing Temu to offer significant savings on a wide range of products.
- 6. Bargain Prices Psychology: Temu capitalizes on the thrill of finding deals, keeping customers engaged with consistently low prices.
- 7. Aggressive Promotions: Frequent discounts and free shipping entice first-time and repeat buyers to keep shopping.
- 8. Generic and Knockoff Products: Many items mimic branded designs without the high costs of branding, offering budget-friendly alternatives.
- These strategies help Temu maintain its low prices, making it an attractive option for budget-conscious shoppers.
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