With its launch in September 2022, Boston-based online shopping platform Temu has experienced a rapid rise in popularity among American shoppers. According to Apptopia, the platform has already achieved 50 million downloads for its app, a milestone that took ultra-fast fashion company Shein three years to reach.
Although comparisons between Temu and Shein are inevitable, they can’t be more different with significantly different business models and product offerings. In this article, we’ll conduct a thorough comparison of Temu and Shein to help you understand their unique features and decide which platform is best suited for you.
What is Temu?
Temu is an online shopping platform headquartered in Boston, Massachusetts, with a mission to connect millions of consumers with top brands, suppliers, and manufacturers worldwide. Since its inception, Temu has expanded to 16 countries across North America, Europe and Oceania, namely Australia, Austria, Belgium, Canada, France, Germany, Italy, Mexico, Netherlands, New Zealand, Poland, Portugal, Spain, Sweden, the UK, and the US.
The Meaning Behind Temu
Pronounced “tee-moo,” the name Temu originates from an abbreviation of the company’s motto, “Team Up, Price Down.” The platform’s name and motto reflect its goal of uniting consumers and suppliers to leverage economies of scale, ultimately reducing costs and prices.
Product Range: Temu vs. Shein
Although both Temu and Shein offer an extensive range of products, their primary focus areas differ significantly. While Shein primarily emphasizes fashion items such as clothing, shoes, and accessories, Temu provides a more diverse product offering, including electronics, home goods, and even catering supplies. This versatility sets Temu apart from fashion-centric Shein, making it a one-stop shopping destination for customers seeking various products under one digital roof.
Is Temu a Fast Fashion Retailer?
Unlike fast fashion retailers, Temu is not considered a fast fashion platform. Instead, it operates as a comprehensive e-commerce platform, offering products across more than two dozen primary categories. Temu functions more like an online superstore, providing a convenient one-stop shopping experience for customers. Additionally, unlike fast-fashion retailers that produce numerous clothing designs to test their popularity, Temu does not commission or produce clothes for sale.
Does Temu Have Its Own Brands?
Temu does not own any brands of its own. Instead, it acts as a platform connecting consumers with independent, third-party sellers, including small businesses, brand owners, and factory owners. Although Temu may provide guidance to these manufacturers on consumer preferences to improve product design and market predictions, the company is not involved in the actual design, commissioning, or production of goods.
Temu’s Stance on Dropshipping
How to order and pay on Temu APP
Does Temu allow merchants to drop ship? Dropshipping is not permitted on the Temu platform. The practice, which involves merchants taking customer orders and placing them with other suppliers for shipment, is prohibited on Temu due to its association with negative customer experiences such as extended delivery times, subpar product quality, and inconsistent return policies.
Is Temu Owned by Shein?
Temu is not owned by Shein. Temu is owned by a multinational e-commerce group that is headquartered in Dublin, Ireland.
Temu vs. Shein: Key Differences
While Temu and Shein share some similarities, their business models and product offerings differ significantly. Here are the main distinctions between the two:
- Origin and headquarters: Temu was founded in the US and is headquartered in Boston, while Shein originated in Nanjing, China, with its headquarters now in Dublin.
- Product offerings: Temu operates as an online platform selling products from third-party suppliers across 29 major categories, whereas Shein is an ultra-fast fashion online retailer focusing on fashion and related categories such as accessories, shoes, and bags.
- Brand ownership: Unlike Shein, which collaborates with various factories to create and sell designs under its own brands (including Sheglam, Motf, Dazy, Emery Rose, Cuccoo, Glowmode, Petsin, and its namesake brand), Temu does not design or produce items under its own brand. Instead, it sources from a diverse range of international suppliers to provide an extensive array of merchandise for its customers.
In Conclusion: Temu and Shein Serve Different Purposes
Although Temu has been compared to Shein since its debut in September 2022, largely due to its rapid growth and widespread popularity, the similarities between the two companies are rather superficial. It’s crucial to recognize that Temu and Shein are not the same and have distinct business models, which cater to different customer needs.
Temu is a versatile, multi-category e-commerce platform that hosts third-party sellers and offers a diverse range of products, making it a one-stop shopping destination for customers seeking variety. On the other hand, Shein is a dedicated online fashion retailer that focuses on designing and producing its own branded clothing in collaboration with contract manufacturers, offering trend-driven, fast-fashion products to its customers.
Ultimately, while both companies have made their mark in the online retail space, they serve different purposes and cater to different audiences. As a consumer, understanding these differences is essential in making informed decisions about which platform best suits your shopping needs and preferences.