What is Temu? Know Complete Information

Temu came on the U.S. market in 2022 and has gained traction by offering cheap apparel and other goods, such as $9 sweaters and $5 mugs.

Its app was the most downloaded free application on Apple devices last year, surpassing popular social media platforms like TikTok, Instagram and YouTube.

Currently, the research firm Marketplace Pulse estimates Temu has more than 100,000 merchants based in China that sell goods on its platform.

Factories act as merchants and ship their products to Temu warehouses in China, which are then delivered directly to consumers in the U.S. and other countries.

The company says the setup allows it to cut out multiple middlemen and offer lower prices.

But news outlets have also reported accounts of sellers who say they've been pressured to cut prices so low that its challenging for them to make a profit.