Practical Ecommerce Merchant

March 12, 2025

Pricing Strategy of Temu Sellers

The Pricing Strategy of Temu Sellers

Temu sellers show massive discounts to boost perceived savings and win customers. The strategy is working.

Launched in September of 2022, Temu has grown rapidly. By December 2023, Temu had captured 17% of the U.S. dollar store market — Five Below, Dollar General, more — according to Reuters.

Certainly Temu’s prices are low. A recent comparison from Omnisend showed shoppers can often save 40% on Temu versus similar products on Amazon (but not Amazon Haul).

However, seller success on Temu relies as much on discount psychology as the savings.

Cheap Headphones

Consider a hypothetical contract manufacturer that sells on Temu. Among the many products the company produces for various brands are noise-canceling, over-the-ear headphones that retail for $99.

This manufacturer-turned-Temu seller has the materials, models, and expertise to build a nearly identical set of headphones. Stopping short of using the original brand’s patented and expensive noise-canceling technology, the company tweaks the earpieces.

The “nearly identical” headphones cost $5 to manufacture.

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