China’s discount e-commerce giant Pinduoduo launches U.S shopping site Temu to take on Amazon
Chinese discount e-commerce behemoth Pinduoduo just launched a new U.S. shopping site as part of its push to make inroads into the overseas market and challenge Amazon. The new online site, called Temu, is a cross-border e-commerce website that sells everything from clothing and accessories for women to home products and pet supplies at low prices.
Known for its rock-bottom prices, the launch of Temu is Pinduoduo’s attempt to replicate the global success of its online fashion retailer Shein. Just like Walmart, the low prices could woo some Americans that are addicted to low prices.
Because most of the products sold on Temu come from overseas, especially from China, Temu said shipping to the U.S. could take 7-15 business days. But the wait could be worth it. For example, Temu offers dresses for as low as $6 and an $8 handbag, and $10 sneakers. Shipping is also free for orders over $49.
“It’s important to keep in mind that you may see longer delivery times than you’re used to from other e-commerce websites. This is due to the fact that items that may be coming from another country or need to be bundled or packaged with other similar-sized items,” the website says on its shipping information page.
In a conference call with analysts this week, Pinduoduo Chairman and CEO Chen Lei confirmed the company was aiming to expand its business overseas but did not mention the US launch.
“Overseas business is one of the opportunities that we see,” Chen said. “At the same time, we also see that many peers in the industry are achieving good results. So we believe that it is a direction that is worth trying out.”
Meanwhile, it’s too early to tell how Temu will be received by US consumers. Temu’s “main challenges will be cultivating trust and awareness among customers,” Jacob Cooke, CEO of WPIC, an e-commerce tech and marketing firm that helps foreign brands sell in China, told CNBC.
Pinduoduo was founded in 2015 by former Google employee Colin Huang. The e-commerce company has been dubbed “China’s Groupon” and a cross between “Costco and Disneyland.”
We covered Pinduoduo in 2018 after the then-eCommerce startup raised about $24 billion in valuation in IPO. The company was backed by Tencent and Sequoia Capital.