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Temu continues to captivate global consumers, some of whom may have started using the marketplace to search for cheaper versions of wares sold on Amazon.
New data from Omnisend shows that 77 percent of products listed on Amazon have a close match on Temu, and that one-tenth of products are identical on the two marketplaces. Among identical products, consumers are likely to see price parity, but on close matches, Temu sellers are listing products for, on average, 40 percent less than Amazon sellers.
In fashion and apparel, the match rate exceeds the 77 percent average; 94 percent of items listed in fashion and beauty categories on Amazon have a close match on Temu. And, most often, consumers are paying less for those items on Temu. On average, clothing, shoes and jewelry are 55 percent less expensive on Temu when stacked up against the Amazon product they are considered a close match for. On average, that means customers purchasing apparel, shoes and jewelry are paying $13.16 less per item when buying from Temu instead of Amazon.
The only category Omnisend found Amazon offered lower prices on was automotive.
Both companies offer frequent discounts on products on their respective marketplaces. On Temu, 65 percent of total listings are discounted, and on Amazon, 47 percent of items are offered on sale. Amazon outpaces Temu on proportion of discount products when zooming in on clothing, shoes and jewelry; while about 61 percent of listings in that category on Amazon are discounted, about 39 percent of those items are discounted on Temu.
Temu’s highest discount reportedly comes in around 98 percent, while Amazon’s highest reported discount is at 67 percent. Temu’s average discount rate comes in at just below 43 percent, and Amazon’s stands at about 18 percent. On Temu, the average discount rate for an apparel, footwear or jewelry item is about 38 percent, while on Amazon, it stands around 21 percent.
Still, despite its ability to compete on price, Omnisend’s research showed that Temu likely lacks one core piece of what Amazon can offer: trust. In its report, Omnisend said it “uncovered brand imitation concerns on Temu, with many products closely resembling well-known brands—but with tweaked packaging, blurred logos or branding removed entirely,” noting that such “attempts to mimic…name-brand counterparts raise questions about authenticity and quality.
Indeed, Temu has been targeted in several intellectual property-related lawsuits, and, in lawsuits against individual sellers alleging counterfeiting, Temu has been cited as a marketplace on which these goods have been sold.
Omnisend also cited reviews as a factor that could be eroding consumer trust on Temu—or preventing consumers from developing trust in the marketplace at all. According to the e-commerce communications platform, the average Amazon product boasts about 50,000 reviews, while the average Temu product has just 1,500. While that alone may not be enough to put consumers off, Omnisend alleged in its report that “[its] research uncovered potential review manipulation on Temu, with disappearing reviews and poorly rated products being removed and reuploaded under new listings.”
Greg Zakowicz, senior e-commerce expert at Omnisend, said Temu may be allowing the type of practices
“One possible explanation is that Temu could be prioritizing seller revenue and growth over transparency, potentially allowing sellers to erase poor reputations and inflate ratings, which may mislead consumers into buying seemingly high-rated products,” he said in a statement. “Alternatively, weak review monitoring might be enabling manipulation, giving sellers an unfair edge. Unlike Amazon’s stricter enforcement, Temu’s approach appears more opaque, raising possible concerns about accountability and consumer protection.”
If Omnisend’s analysis alleging shady review tactics proves accurate, Temu could face issues with regulators; after the Federal Trade Commission (FTC) accused Fashion Nova of suppressing negative reviews several years ago, the fast-fashion purveyor paid out a $4.2 million settlement in 2022. In January, $2.4 million of that settlement went to more than 148,000 eligible consumers affected by the company’s alleged practices.