Logo for the online marketplace Temu.
Courtesy, Temu
- Share price:
- $118.27 (mkt close, Dec. 01, 2025)
- Annual revenue:
- $418.54 bil.
- Earnings per share (prev. year):
- $9.75
- Sector:
- Consumer Discretionary
- Industry:
- Broadline Retail
Top Questions
What kinds of products does Temu sell?
Everything from phone accessories and kitchen gadgets to beauty tools and novelty items. Most products are low cost and mass produced.
Is Temu safe to use?
Temu is legitimate, but shoppers have reported privacy concerns, counterfeit goods, and poor customer service. Buyer protections may be limited.
Temu is a Chinese e-commerce company known for extremely low prices and rapid international growth. Its parent company, PDD Holdings, built its flagship business, Pinduoduo, by connecting Chinese farmers with consumers and later expanded to offer a wide range of goods. In 2022, PDD launched Temu internationally as both an app and website. Temu has since grown rapidly to become a major player in global e-commerce.
Temu’s business strategy and operations
Temu is often compared to Shein, another Chinese-owned e-commerce company, although their business models differ. Shein contracts with manufacturers to produce small batches of owned inventory on demand, but Temu functions as an online marketplace, allowing third-party suppliers to sell directly to customers. Temu also offers a wide range of products in multiple categories, unlike Shein, which focuses primarily on clothing.
Temu attributes its low prices to its direct dispatch model. “Dispatching goods directly from the source eliminates the need for multiple stages of transportation and warehousing, addressing what is often the most significant expense and inefficiency in conventional retail operations,” a Temu spokesperson told National Public Radio (NPR) in 2024. Temu also uses gamification—adding game-like features to shopping—to attract customers, encouraging them to share the app on social media to receive discounts.
Controversies and criticisms
Additional criticisms faced by Temu
- Forced labor allegations: A 2023 report by the U.S. House Select Committee alleged that Temu likely sells products produced with forced labor due to its lack of compliance with the Uyghur Forced Labor Prevention Act (UFLPA).
- Counterfeit products: Designers have accused Temu of selling counterfeit versions of their products.
- Privacy violations: Lawsuits have claimed that the site violates privacy rights and misleads customers about how their data is collected and used.
- Logistics issues: Some consumers have reported delayed shipping times and items never arriving.
Temu benefited from a U.S. trade rule known as de minimis, which allowed packages valued under $800 to enter the country without duties or certain taxes. Originally intended to let American tourists bring back small purchases without customs declarations, the rule enabled companies to ship low-cost goods directly to U.S. consumers. In response to the rise of sites like Temu, lawmakers proposed several bills to restrict its use.
In May 2025, the U.S. eliminated the de minimis exemption for goods from China and Hong Kong, following an executive order signed by President Donald Trump. The policy change forced Temu to halt direct shipments from China and transition to fulfilling orders from within the United States.
Growth and future trajectory
Within a year of its launch, Temu had an estimated $16 billion in revenue. The Temu app frequently topped the Apple App Store charts during that period. Analysts suggested that the company’s strategy to prioritize market share over profit margins was similar to Amazon.com’s in its early years.
In 2024, Temu launched an extensive marketing campaign, including three ads during the Super Bowl and two additional spots after the game. The ads, which featured the tagline “shop like a billionaire,” were accompanied by “more than $15 million in coupons and giveaways,” according to the company.
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