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Nov 21st, 2024
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  1. Temu offers low prices through several strategies:
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  3. 1. Direct-to-Consumer Shipping: Products are shipped directly from manufacturers in China, cutting out middlemen and reducing costs.
  4. 2. Lower Seller Fees: Sellers on Temu pay minimal fees compared to platforms like Amazon or eBay, leading to cheaper prices for customers.
  5. 3. De Minimis Rule: Most products fall under the $800 threshold for duty-free imports, avoiding additional tariffs and taxes.
  6. 4. Chinese Government Subsidies: Temu benefits from export subsidies, helping it compete globally by offering extremely low prices.
  7. 5. Economies of Scale: Bulk production lowers costs, allowing Temu to offer significant savings on a wide range of products.
  8. 6. Bargain Prices Psychology: Temu capitalizes on the thrill of finding deals, keeping customers engaged with consistently low prices.
  9. 7. Aggressive Promotions: Frequent discounts and free shipping entice first-time and repeat buyers to keep shopping.
  10. 8. Generic and Knockoff Products: Many items mimic branded designs without the high costs of branding, offering budget-friendly alternatives.
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  12. These strategies help Temu maintain its low prices, making it an attractive option for budget-conscious shoppers.
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