Temu Dropshipping: A Step-by-Step Guide to Actually Making Money

If you've spent time browsing YouTube or TikTok, you'll probably have heard of Temu.

Ads for the eCommerce platform have been popping up everywhere. It even featured on prime ad spots during the Super Bowl.

And it's quickly made a significant impact in the U.S. and Europe by offering a wide range of products at rock-bottom prices (we'll reveal the secret behind Temu's extremely low prices later in the guide).

Now, the big question is:

Can you use Temu for dropshipping?

That's what we're going to reveal in this guide. We'll break down everything you need to know about using Temu in your eCommerce strategy.

Whether you're a seasoned seller or just starting out, we'll explore why Temu could be a good option for your dropshipping business. You'll also learn about some of the challenges you will have to overcome.

Ready to explore Temu dropshipping opportunities?

Let's get started.

Introduction to Temu Dropshipping

Before diving into the nitty-gritty, let's quickly cover the basics of the Temu platform.

What Is Temu?

Temu is a relatively new eCommerce platform launched in the U.S. in September 2022. It's part of PDD Holdings, the company that runs the huge Chinese shopping site Pinduoduo.

Since its launch, Temu's growth has been incredible. It quickly became one of the most downloaded shopping apps in the United States.

This rapid growth is down to two things:

• A big marketing push
• Low priced products

Temu connects buyers with suppliers based in China, allowing it to offer products at significantly lower prices than other retailers. The platform is spending a lot of cash trying to break into new markets. According to a Wired article, Temu loses an average of $30 per order.

With a vast product range and ultra-low pricing, Temu is a platform worth exploring for dropshippers.

Can I Use Temu for Dropshipping?

Officially, Temu does not explicitly support or promote dropshipping on the platform. Like Amazon and eBay, its target audience is retail customers looking for bargains.

Here's how it's described on the Temu website:

However, that doesn't mean you can't use Temu to source dropshipping products. But it does mean you'll encounter a few challenges.

Challenges and Considerations

There are a few key challenges that come with dropshipping Temu products. Here's what you need to consider:

Challenge 1: Branding Limitations

This is one of the most significant issues with Temu dropshipping.

Every order shipped from Temu comes in distinctive orange packaging with the company's logo prominently displayed. You can't add your own logo or place branded inserts inside the packaging.

Building a unique brand identity is impossible because customers will immediately know your products are sourced from Temu. When a package lands on their doorstep, the first thing your customer will do is search for it on Temu. And when they see they could have saved money by buying direct, they will be disappointed with their purchase.

Challenge 2: Product Quality Variability

Temu offers products at exceptionally low prices. Sometimes, this can be reflected in the inconsistent product quality.

If you check impartial reviews online, you'll find plenty of people unhappy with the quality of the products they've bought.

That can lead to high return rates and damage to your brand reputation.

Challenge 3: Customer Service Complexities

Customer service can be tricky since you're not the direct seller. You must act as a middleman between your customer and the Temu support team.

And Temu doesn't have a great reputation for customer support.

This can be an issue when managing returns and shipping issues.

How to Start Temu Dropshipping (Step-by-Step)

So there are some drawbacks to dropshipping with Temu. But there is still an opportunity to make money from the platform.

Here's how you can get started with Temu dropshipping:

Step 1: Set Up Your Online Store

First, you need an online store to showcase your products and process sales.

The easiest way to do that is to use an eCommerce platform. These platforms provide user-friendly interfaces and tools for building and managing an online store.

WooCommerce is the most used platform, but it's not the most user-friendly - especially if you don't have any experience with WordPress.

Here's a quick rundown of your options:

Shopify

Shopify is one of the most popular eCommerce platforms. It's super easy to use and comes with a ton of useful features. You can also find a ton of third-party apps on the Shopify App Store to enhance your store.

WooCommerce

WooCommerce is a highly flexible platform that integrates directly with WordPress. If you're familiar with WordPress, it's a great option. WooCommerce is open source, so it's incredibly customizable. It's also free to use, although you might need to pay for additional plugins or themes.

Wix

Wix is a website builder that has recently expanded its eCommerce capabilities. Its intuitive drag-and-drop interface gives you a lot more creative freedom than Shopify. There's an affordable basic eCommerce plan, but you'll likely need to upgrade as you grow your store and process more orders.

Once you've chosen a platform, you'll need to choose a domain name and start building your store. There's a lot that goes into creating an eCommerce site, but we've got you covered.

Check out the resources below for expert tips and advice on setting up your store.

Step 2: Research Products

The next step is to select the products you want to sell.

Start by exploring the product categories on Temu. The platform has a huge range of products, so you're guaranteed to find a category that fits your niche.

You should also pay attention to Temu's best-selling products. These items are popular for a reason. They can give you insights into what customers are currently interested in.

It's also a good idea to check out the reviews. They can give you insights into the quality of the product and the features customers care about the most. That's great information to inform your product listings and marketing.

It's always a good idea to order a sample product. This allows you to check the quality yourself and helps you avoid customer complaints.

There are a lot more factors that contribute to a winning dropshipping product. Check out the resources below for expert tips and product ideas.

Step 3: Create Your Listings

After you've selected your products, it's time to list them on your site. Product listings have a massive impact on purchasing decisions.

Analyzing an example is the best way to demonstrate how to create listings that attract and convert visitors into buyers.

The Anova Precision Oven product page combines strong visuals with compelling content.

First, there's a clear product title and description with customer ratings to build credibility and trust. And to the side, there's a high-quality lifestyle photo of the oven in a real kitchen setting. This helps potential buyers visualize how it would look and fit into their own homes.

Temu product images are usually quite generic, so you should consider ordering a sample product and taking professional-quality lifestyle images to make your listings look unique.

Further down the page, there's a detailed breakdown of the features to help customers understand what the product can do.

A visual section also compares the Anova Precision Oven to traditional home ovens. It highlights the superior temperature control and other benefits to help justify the product price and position it as a better alternative.

Creating product listings isn't a one-time task. You should continuously test different aspects of your listings to see what works best.

If you need help creating your listings, check out the resources below.

Step 4: Manage Orders

When a customer purchases on your site, you must manually place an order with Temu and fill in the customer's shipping details.

Once you receive confirmation from Temu, send your own branded confirmation to your customer to confirm their order. This should include details of what they've purchased, the total cost, and an estimated delivery time.

It's essential to regularly check the availability of products on Temu. Since there's no dropshipping integration, you must manually ensure the products you're selling are in stock.

Step 5: Handle Customer Service

Customer service can significantly impact customer loyalty and your store's reputation. A recent study found that customer service comes second only to price as the biggest factor influencing customer loyalty:

You will have to rely on Temu customer service to resolve any problems. However, you can still do some things to improve the experience for your customers.

First, set up clear communication channels for your customers to reach you. This could be via email, a contact form on your website, live chat, or social media platforms.

Speed is vital when dealing with customer inquiries. When you receive a message, don't wait for Temu to respond to you before replying to your customer. Even if you don't have an immediate solution, acknowledge the inquiry and tell the customer you are working on resolving it.

Need help delivering great customer service? Check out the resources below.

Step 6: Optimize and Scale

When you start to make some sales, the next step is to optimize and scale. The best way to do this is to use data to guide your decision-making.

Start by reviewing the performance data from your online store. Pay close attention to metrics like sales figures, traffic sources, and conversion rates. Tools like Google Analytics can provide insights into which marketing channels drive the most traffic and which products are your top sellers.

Once you've gathered this data, focus your efforts on what's working. If you notice that a particular social media platform is bringing in a lot of traffic, consider investing more time and resources there. And if a specific product is flying off the shelves, think about promoting it more heavily. It's all about fine-tuning your strategy based on real-world results.

Temu Dropshipping Business Model and Market Strategy

The Temu dropshipping model is pretty simple. Here's how it works step by step:

1. Find a product to sell from Temu's extensive product catalog.

2. You don't need to buy inventory in advance. Instead, you list products from Temu on your online store.

3. When an order is placed on your store, you purchase the item on Temu and add your customer's shipping details.

4. Temu handles the packaging and shipping directly to your customer.

That's the Temu dropshipping business model. However, you will need great marketing to get noticed and generate sales.

Comparison of Temu's Market Strategy with Other eCommerce Giants

Temu's strategy is focused on penetrating Western markets with aggressive pricing and marketing tactics. That's why the platform is all over social media and why its products are so cheap. It aims to undercut competitors by offering the lowest possible prices.

AliExpress has a similar business model to Temu. It also connects buyers with manufacturers and wholesalers in China. However, AliExpress is less focused on building its own brand. It's more about providing a platform for sellers to reach consumers. Unlike Temu, AliExpress does not require sellers to ship goods in branded packaging.

Amazon operates on a different scale and model. It focuses more on customer experience, including fast shipping, customer service, and returns. The company sells its own products and works as an eCommerce marketplace for third-party sellers.

Pros and Cons of Dropshipping with Temu

Dropshipping on Temu offers some significant advantages, but the platform also has drawbacks.

 Here's a breakdown of the pros and cons.

✅ Pro: Product Variety

There is a huge variety of products available. You'll find plenty of items to sell, from electronics and power tools to clothing and jewelry. This makes it easy to test out different niches and expand your product range.

✅ Pro: Pricing

Temu's pricing is usually lower than most other platforms, which can translate into higher profit margins. By sourcing products at a lower price, you can maintain a healthy markup while still keeping your pricing attractive to shoppers.

❌ Con: Packaging Limitations

This is the biggest drawback of Temu dropshipping. All items shipped from Temu come in Temu-branded packaging, which is a big problem if you're aiming to build your own brand.

❌ Con: Quality Concerns

The low pricing on Temu sometimes reflects the quality of the products. You need to be selective about the products you choose to dropship from Temu. Poor-quality products will lead to unhappy customers, more returns, and bad reviews.

❌ Con: Policy Restrictions on Dropshipping

Temu is a retail platform that does not explicitly support dropshipping. That means there are no dropshipping tools that integrate directly with Temu. You're also operating in a gray area and may encounter issues if Temu discovers you are dropshipping products from the platform.

Operational Challenges in Temu Dropshipping

Let's take a closer look at some of the operational challenges of the Temu dropshipping process.

Shipping Times and Reliability

Shipping times are one of the most significant logistics challenges you'll face. Most shoppers are now used to next-day delivery, and that's not possible with Temu.

While some products arrive in six days, others take over three weeks. That can be problematic when customers expect fast delivery.

Handling Queries and Complaints

You have very limited control of the supply chain, which can make handling customer service inquiries challenging. If a customer has a complaint about a product or a late delivery, you'll need to contact Temu to try to resolve the problem.

Return and Refund Processes

Returns are another area where you might have issues. You'll need to communicate with Temu and instruct the customer on where to return the item. You also need to keep your customers satisfied while waiting for Temu to process the return and issue a refund.

Alternatives to Temu for Dropshipping

So Temu isn't an easy platform to use for dropshipping. So what are the alternatives?

Let's take a look at three other platforms that are more suited to the dropshipping business model.

SaleHoo

SaleHoo is a curated directory that connects you with over 8,000 verified suppliers. You can filter through millions of products to find items that would be an excellent fit for your store.

All the suppliers listed in the directory have undergone checks. So, you can be sure that the suppliers you choose to work with are reliable.

SaleHoo also has suppliers from all over the world - not just China. This can make a big difference to shipping times. Faster shipping keeps your customers happy and gives you a competitive edge over other dropshippers who rely solely on suppliers from China.

AliExpress

AliExpress has some similarities to Temu. It can connect you with thousands of suppliers and offers a vast range of products. However, the wide range of products and multiple suppliers can also be an issue. One of the common challenges of AliExpress dropshipping is inconsistent product quality.

This is where SaleHoo Dropship comes in. It takes the guesswork out of finding reliable suppliers and high-quality products on AliExpress. You can access winning products handpicked by our eCommerce experts. And with just one click, you can add them to your Shopify store.

Shopify

Shopify isn't a dropshipping platform or supplier directory, but it is one of the most popular tools for building an online store. And it's great for dropshipping businesses.

You can seamlessly integrate your Shopify store with third-party apps to add functionality and automate tasks. That includes everything from adding products to marketing campaigns.

Shopify also offers a comprehensive set of built-in tools to help you manage your store, including payment processing, customer service, and analytics tools.

Legal and Compliance Considerations

First, let's make it clear. It is not illegal to dropship Temu products. Although the platform does not officially support dropshipping, you can use Temu to source products to sell in your dropshipping store. However, there are a couple of legal considerations to keep in mind.

When shipping products internationally, your packages must be cleared by customs in the destination country. Depending on the destination country's regulations, the package may be subject to additional fees like import taxes and duties.

In the U.S., a loophole known as de minimis allows Temu packages under the value of $800 to enter the country without any duty or import taxes. If you're selling in another country, you'll need to check the tax laws to avoid any surprises.

Depending on the product type and the countries you're shipping to, your products may need to meet safety standards and have compliance certifications. For example, electronics sold in the E.U. need to have C.E. marking. Make sure you know your products meet the necessary requirements to avoid any legal problems down the line.

Customer Experience and Service

The level of support provided by your dropshipping supplier has a huge impact on the experience you can provide to your customers. If Temu's customer service is poor, it will negatively reflect on your business. You won't be able to resolve issues quickly and keep your customers happy.

Temu offers several channels for customer support. Based on user feedback and reviews, responsiveness can vary. Some users experience quick responses, while others have complained about long delays. This inconsistency can be an issue when you're dealing with customer complaints.

However, Temu does have some generous policies. For example, Temu offers a $5 credit if an order arrives late. This increases to $13 for orders purchased with express shipping. There's also a Purchase Protection Program that guarantees a full refund if items are returned within 90 days of purchase.

Market Trends and Consumer Behavior

Temu is making a big push to disrupt the eCommerce market. So, is the platform's growth sustainable?

Well, several underlying trends are shaping the eCommerce market. Understanding how Temu fits into these trends is key to aligning your business strategy.

Increased Demand for Cost-Effectiveness

In today's economic climate, consumers are increasingly looking for ways to stretch their budgets. A recent study found that 69% of people believe their cost of living has gotten somewhat or much worse over the last three years:

When people are struggling more financially, they look for bargains. That's why budget-friendly platforms like Temu have seen strong growth. Temu taps directly into the consumer demand for affordability by providing products at highly competitive prices.

Rise of Mobile Shopping

More and more consumers are using their mobile devices to shop. In the U.S., 76% of adults have used their mobile phones to purchase something online.

Mobile commerce is one of the biggest trends in eCommerce, and it's an area where Temu excels. The platform provides a user-friendly Temu app for shoppers to browse products and make purchases.

Temu does a great job of catering to the increasing number of consumers who prefer to shop on their mobile devices.

Sustainability and Ethical Consumption

There is a growing trend towards sustainability in consumer purchasing decisions. Shoppers are more likely to consider the environmental impact when choosing platforms and products.

The degree to which consumers' purchasing behavior and choices shifted towards buying more sustainable products over the past five years worldwide in 2022:

While Temu offers affordable products, it does not focus on sustainability. We’ll see if this becomes an issue when the economic situation improves, and shoppers have more money to spend.

Strategies for Success with Temu Dropshipping

Temu is far from the ideal dropshipping platform. But it can still play a part in your overall strategy.

Here are some expert tips to help you make the most of the platform:

Regularly Update Product Listings

Temu doesn't support dropshipping, and there are no tools to sync your website with the platform. That means you need to manually update your product listings.

You don't want to sell a product on your website and then discover that the item is sold out on Temu. Make sure you regularly check product availability and keep your product listings updated on your website.

Diversify Your Supplier Base

Relying exclusively on one supplier is never a good idea. While Temu can be part of your product sourcing strategy, you should also consider using other platforms and dropshipping suppliers.

This will help you mitigate the risks that come with dropshipping Temu products. If Temu changes its policy and bans dropshipping, you won't lose your entire supply chain overnight.

Utilize Data-Driven Decision Making

You always want to make decisions based on real-world data. This is true for everything from choosing the right products and optimizing pricing strategies to targeting the right audience and improving customer service.

Succeeding with Temu Dropshipping in 2024

Temu is an attractive platform for dropshippers. It has a huge inventory and some of the lowest prices you'll find anywhere online. That means there is an opportunity to make a good profit margin on each sale.

However, the platform has significant drawbacks. There are no dropshipping tool integrations, and every product arrives with Temu branding all over the packaging, making it really hard to build a brand.

That's where the SaleHoo Directory can make a big difference. SaleHoo offers a carefully curated list of suppliers that provide the extras that Temu doesn't. You can find reliable suppliers offering white labeling, custom packaging, and other services to build a unique eCommerce brand.

Find reliable dropshipping suppliers today!

If you're thinking about giving your dropshipping company a boost or have any questions about eCommerce, reach out to our SaleHoo customer support team. We're always ready to help!