E568: How Are Temu Prices So Much Lower?

In this episode, Dave talks about how Temu is pressuring Amazon with its low prices, fast shipping and surge in popularity.

Ever since Temu's viral marketing ad in the Superbowl, they've grown to become one of the biggest competitors to Amazon. 

But how is Temu able to offer lower prices compared to sites like Amazon and even eBay?

It has something to do with its business model and the fact that it lacks a few key features of other e-commerce sites. But is there more to it?

In this episode, we'll talk about how Temu has disrupted the e-commerce space, how Temu keeps its products cheap, and how they cut costs. 

The Big Takeaways of Today's Episode

• Temu has disrupted Amazon's dominance in the North American e-commerce market.
• Temu is able to offer fast shipping times because of their logistics model that mirrors Amazon's FBA.
• The Chinese government may be indirectly supporting Temu's growth by heavily supporting exports.

Temu Prices Episode Timestamps

• 00:00 - Introduction to E-commerce and Temu
• 02:54 - Temu's Disruption of Amazon
• 05:45 - Logistics and Shipping Innovations
• 09:03 - Pricing Strategies and Market Competition
• 11:50 - Government Subsidies and Economic Implications
• 15:08 - Amazon's Response to Competition
• 18:02 - Conclusion and Future Outlook

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Thanks for listening!

Until next time, happy selling!