How Is Temu So Cheap

Added: 2026-06-01

[00:00:00]How is Temu selling things this cheap?

[00:00:02]Like… who is making money from a £2 smartwatch  and a phone charger that costs less than a coffee?

[00:00:07]Because on the surface, the math looks broken.

[00:00:10]But Temu was never built  like a normal online store.

[00:00:13]Instead of stocking products in giant warehouses, Temu connects shoppers directly  to manufacturers in China.

[00:00:19]That cuts out a huge part of the markup.

[00:00:21]No middlemen.

[00:00:22]Less branding.

[00:00:23]Cheaper labour.

[00:00:24]And often… lower quality control too.

[00:00:26]But here’s the really important part.

[00:00:28]Temu is also willing to lose money.

[00:00:30]A lot of it.

[00:00:31]Why?

[00:00:32]Because right now, growth  matters more than profit.

[00:00:34]Temu’s parent company became massive  in China by using ultra-low prices to flood the market with users first…  then figuring out profits later.

[00:00:42]So those crazy discounts?

[00:00:44]Some are funded by suppliers.

[00:00:45]Some by Temu itself.

[00:00:47]And once millions of people get used to shopping  there… the platform becomes incredibly powerful.

[00:00:51]So yes, Temu is cheap.

[00:00:53]But part of the reason it’s cheap… is because  somebody, somewhere, is absorbing the real cost.

[00:00:58]Watch the next video on screen for another company using a strategy that sounds  completely unsustainable.