Temu

Temu launched internationally in 2022 and broke records. By 2023, it generated 20 billion in gross merchandise volume. The secret wasn't innovation or design. It was supply chain arbitrage. Temu ships directly from Chinese manufacturers to Western consumers, cutting out middlemen and traditional retail. The supply chain inverted compared to Amazon. Amazon holds inventory in warehouses. Temu ships directly from factories to customers. That saves on warehousing, carrying costs, and logistics. Savings flow to pricing. A product costing 20 on Amazon sells for 3 on Temu. Margin came from elimination, not volume. Temu's model targets categories where quality and timeliness matter less.