Temu is a cross-border e-commerce platform, founded by PDD Holdings (China) - the world's largest online retailer today. Temu opened a sales feature in Vietnam and has been running massive advertising to users recently.
The highlight of Temu compared to other e-commerce platforms is that the product price is very cheap compared to other platforms and only half that of domestic products.
According to experts in the field of e-commerce, the reason why products on Temu are priced low is because Temu has applied a business model that is not traditional, and is also very different from other e-commerce platforms, which is the M2C model.
Simply put, this is a business model that eliminates intermediaries such as importers, distributors, retailers, and advertisers. Goods go directly from Chinese manufacturers to consumers, saving a lot of costs from intermediaries. These stages can account for up to 80% of a product's cost.
Furthermore, Temu also has a unique approach, different from other platforms, which is to subsidize shipping costs, meaning Temu bears the shipping costs for customers, especially international shipping.
Of course, whether the goods on Temu are cheap as analysts say or for some other reason, we need more time to confirm. Because this platform is still too new in Vietnam.
Even a representative of the Ministry of Industry and Trade, when talking to Lao Dong, said that the Temu e-commerce platform has just appeared in Vietnam and has not been officially announced in Vietnam, so "there is currently no specific assessment".
As for whether the prices of goods and products are too cheap, the representative of the Ministry of Industry and Trade is also in the "monitoring and supervising" stage to have comprehensive information.
However, there is a visible problem which is the risk for consumers when purchasing on this e-commerce platform.
At present, Temu does not allow Vietnamese users to use cash on delivery payment method. That means users must pay immediately when ordering by credit card or Apple/Google Pay, then receive the product.
When buying this type of product, consumers are very likely to face risks, possibly buying products that do not guarantee quality, fake products, products that do not match the description... Although, according to the announcement, Temu currently has a return and refund policy.
However, Temu is a cross-border e-commerce platform, with most sellers from China, and has not officially announced in Vietnam, so the process of returning products and refunding is not easy, takes a lot of time, so sometimes "You can't have your cake and eat it too".
At this time, if there is a dispute between Vietnamese consumers and Temu, the law cannot protect their rights, so it is best to protect yourself by being careful and considerate when placing an order!
