Is Temu a Good Dropshipping Supplier? (5 Pros and Cons)

Temu can be a good dropshipping supplier because it offers a wide range of products. Due to
its connection to Pinduoduo, their prices are competitive. So, dropshippers can access a low-
cost, diverse inventory. Temu's user-friendly platform helps dropshippers handle order
management and product selection features.

Yet, Temu is not a good choice for dropshipping beginners. This is because Temu's policy does not allow dropshipping. Rather, Temu connects consumers with many merchandise partners, manufacturers, and brands. These partners sell exclusively on Temu and their website. Due to this Direct to Consumer model, Temu dropshipping is really not a viable option.

This Reddit discussion asks for real experiences with Temu's dropshipping order fulfillment.
Users expressed concern about the packaging, which prominently features Temu's branding.
This branding may lead customers to the original price, causing dissatisfaction and
chargebacks.

One user replied, stating that TEMU does not permit dropshipping based on their terms of service. They warned that if you try to use TEMU for dropshipping, you will eventually be caught and your account will be banned.

In this article, we will share insights whether Temu is good dropshipping supplier. We will also
learn the pros and cons it offers to new entrepreneurs.

Is Temu a Good Dropshipping Supplier?

Temu can be considered a good dropshipping supplier. This is due to the competitive price and wide variety of products it offers. The reason for this is that Temu uses direct-to-consumer (D2C) model. By cutting out the middlemen, Temu offers items at prices that are hard to beat. Moreover, by selling at high volumes, they can work on low margins.

Despite its policy against dropshipping, sellers still manage to dropship using Temu. However, it offers limited integration options for platforms like Shopify. 

Austin Rabin discusses the potential for dropshipping with Temu. He compares prices and shipping times, finding Temu cheaper and quicker. Despite Temu's policy against dropshipping, Rabin suggests to bulk order products. Either to his home or a third-party logistics company (3PL). This allows repackaging and faster shipping. Thus, preserving profit margins and improving customer service. The approach requires initial investment but offers advantages over using AliExpress directly.

5 Pros of Temu as a Dropshipping Supplier

1. Low Prices and Discounts 

Temu’s prices compare to similar products on other dropshipping platforms are generally lower. This is because they focus on wholesale pricing and big discounts. Other suppliers rarely provide these with comparable enthusiasm. As a result, Temu users can save more. This will let them offer lower prices to customers and earn more profit for their business. 

A YouTube creator recently discovered and tried using Temu. It has affordable and fast-shipping suppliers. They decided to dropship massage guns. They would use Temu’s low prices to keep high profits. However, the short-lived Temu deals posed a big challenge. They made it hard to sustain profits as prices fluctuated. To capitalize on these deals, the creator built a website and used TikTok paid ads to quickly attract budget-conscious buyers.

Also, scaling the business was hard. This was due to the manual order fulfillment process and the need for continuous ad creation. The business may have made $7.5k in revenue and $2.5k in profits. But, it faced $700 in refunds. This happened because customers disliked the recognizable Temu packaging.

2. Wide Product Range Offered 

This variety allows dropshippers to attract and serve different customer segments. 

3. Generous Return Policy

Generous return policy of Temu allows customers to return items within 90 days from the date of purchase for any reason. But, there are some exceptions. This include as worn or washed clothing, items without original tags or packaging, and products labeled as non-refundable.

A video testimonial on YouTube shared her experience on Temu's return policy. She highlights that all items must be returned at once within a 30-day window. Each item requires a picture to be uploaded during the return process. They found the return process to be straightforward and efficient, opting to use UPS for convenience.

The entire process, from shipping the return to receiving the refund, took about six days, with Temu quickly processing the return and issuing the refund to the credit card. Temu's customer service was proactive and responsive. They reached out privately after she posted a critical video to offer assistance.

However, she was dissatisfied with the quality and safety of the items and the frequent spam emails from Temu, leading them to decide not to shop with Temu again.

4. Faster Shipment 

Faster shipment of Temu offers both standard and express shipping options. This allows flexibility based on delivery speed and cost preferences. 

Standard Shipping

• Free for all orders.
• Delivery time ranges from 6 to 20 days.

Express Shipping

• Costs $12.90 for orders under $129 and is free for orders over $129.
• Delivery time is between 4 to 9 days.

For those who need even faster delivery, Temu provides an "Urge Shipment" option, which can expedite delivery to 1-3 days. However, this service requires a specific request after placing the order and may incur additional costs, depending on the seller's policies.

If delays occur, Temu offers compensation: a $5 credit for standard shipping delays and a $13 credit for express shipping delays

5. High Popularity and Traffic 

High popularity and traffic from Temu app is evident since its launch in September 2022. According to Analyzify, the app has achieved over 130 million downloads and maintains a leading position in app stores in the US. The country has accounted for over 40% of its total downloads.

5 Cons of Temu as a Dropshipping Supplier

1. Quality Control Concerns 

Quality control concerns from customers of Temu involves product quality, counterfeit products and overall customer complaints.

A Reddit user discussed their bad experience with Temu. This involves receiving the wrong package. They must also return it at their own cost after the first free return. Then they only get a refund if the return and quality check succeed. But, the user found Temu's customer support unhelpful. They only reopened tickets and asked for patience. But, they did this even when all requested proofs were provided but were deemed insufficient. 

In contrast, the user praised AliExpress for having much better customer support. This suggests Temu has significant quality control and customer service issues compared to other E-commerce platform like AliExpress.

2. Account and Scalability Issues

Account and scalability brought by Temu's rapid expansion also faced challenges. Time Magazine says the company relies heavily on the de minimis trade loophole. It lets them ship many low-cost goods directly to U.S. consumers without paying import duties. This practice has sparked criticism and calls for regulatory changes. This is because it gives Temu an unfair advantage over domestic retailers who are subject to import taxes

Also, Forbes Australia discusses how Temu might face big challenges in 2024. This is due to possible changes in U.S. tax laws. Temu's rapid growth. Closing this loophole will make U.S. Customs and Border Protection inspect Chinese imports more closely.

3. Privacy and Security Concerns with Temu as a Dropshipping Supplier

Privacy and security concerns for the platform has also been criticized for its data privacy
practices. There have been accusations of excessive data collection. This involves social
media and banking details, which led to a controversy from regulators.

According to Evident, the most notable is the lawsuit filed in a federal court in New York. This
class action lawsuit claims that Temu failed to protect its customers' personal data. This
allowed hackers to steal their personal and financial information. The complaint asserts that
Temu deliberately ignored best security practices. It compromised customer data to cut costs

4. Safety and Ethical Concerns

Safety and ethical concerns of Temu's parent company, PDD Holdings, has faced allegations of using forced labor. These are an ethical concern about Temu's supply chain involving the Uyghur population in China. Reports suggest a high risk of forced labor in making some goods.

Currently, customs already checks some shipments. They do this to ensure compliance with the 2021 Uyghur Forced Labor Prevention Act. This act requires companies to prove their supply chains are free from forced labor. This is particularly from regions like Xinjiang in China. Earlier this year, Temu admitted to lawmakers that it doesn't fully ban Xinjiang products.

5. Risk of Lost Packages with Temu as a Dropshipping Supplier

The risk of lost packages with Temu is a significant concern for consumers. A Reddit discussion highlights this issue with a user sharing their brother's experience of losing $500 on a Temu purchase.

Despite staying home to receive the package as per Temu's delivery notification, it never arrived. When contacting Temu customer service, they were unhelpful. And only stating it was the buyer's responsibility to ensure the package's receipt and offering no refund.

As a result, consumers may lose trust in online markets with poor service and bad delivery guarantees. This case shows the need for clear delivery policies. It also shows the need for responsive customer support. These measures reduce risks and keep customer trust.

How Does Temu Compare to Other Suppliers?

Is Selling on Temu Profitable?

Selling on Temu is profitable, but it depends on: 

• The type of products being sold
• Pricing strategies
• Market demand
• Product sourcing
• Shipping
• Hidden fees 

Temu has competitive pricing, a wide range of products, and a large customer base. But, this
doesn't guarantee success, especially for beginners. 

A Reddit discussion tackles whether selling on Temu is profitable. It reveals mixed user
feelings. Some are curious about Temu's effect on the market. They note that many top
Amazon sellers are already from China. The question is whether Temu will significantly
change the industry. There is interest in whether U.S. sellers can join. This is especially true
for unique products not on Temu.

However, one user expressed skepticism. They viewed Temu as a platform that attracts low-
price users to collect personal data, and then sell to advertisers and third parties. This user
also criticized the quality of the products available on Temu, suggesting they are poor quality. 

Is It Too Late To Start Dropshipping In 2024?

It is not too late to start dropshipping in 2024. The dropshipping business model continues to
be viable, with opportunities available due to evolving e-commerce trends, expanding global
markets, and the increasing popularity of online shopping. Success in dropshipping, however,
depends on factors such as selecting the right niche, effective marketing strategies,
maintaining good supplier relationships, and providing excellent customer service. While
competitive, new entrepreneurs can still succeed with careful planning and execution.

In a Quora discussion, one user shares his insights about the possibility of dropshipping In
2024. He said that dropshipping still works, but it's evolved. It's no longer just about listing
products online. Successful dropshipping now requires a well-branded store that feels
personal and trustworthy. You need to become skilled in setting up and branding your store or
collaborate with someone who excels in this area.

Moreover, outsourcing can be a huge time-saver, especially if you're not tech-savvy or good at
design. Ultimately, the key is to connect with your customers in a genuine way, whether you
do it yourself or with expert help.

Can Dropshipping Make You Rich?

Dropshipping can make you rich but it's not guaranteed. The Beast of Ecom discusses
whether you can become a millionaire through dropshipping. Instead of solely focusing on dropshipping, he emphasizes the importance of financial literacy and strategic money management. Understanding the difference between assets and liabilities is crucial for long-term wealth. Financial literacy involves using knowledge and skills to manage money well. It is essential for those not born into wealth. They need to learn how to grow their money wisely.

To get rich from dropshipping, two main strategies are recommended. First, build a long-term brand that can be sold for millions. Second, acquire income-generating assets like real estate and stocks. Also, learning the cash flow quadrant is important. The goal is to transition from being an employee to a business owner or investor. This opens up to opportunities for passive income. This also provide financial freedom.

Is Local Lead Generation More Scalable Than Dropshipping From Temu?

Local lead generation is generally more scalable than dropshipping from Temu because it relies on generating and selling leads. It can scale rapidly because it relies on digital marketing strategies that can reach a large audience with minimal incremental cost. Once a lead generation system is set up, it can continuously attract new leads without an increase in operational expenses. Additionally, local lead generation can simultaneously serve multiple clients across various industries.

In contrast, dropshipping from Temu depends on physical product sales. It also has challenges like inventory, shipping, and customer service. These factors can limit scalability. This is because more sales volume often needs more investment in these areas. In addition, dropshipping profit margins are usually lower, with an average around 10-30%. This is compared to the higher margins in local lead generation.

One of the biggest advantages of local lead generation is the potential for profit margins of 85-90%. After building and ranking a website, you find a small business owner willing to pay for the leads. Each site requires minimal startup costs—around $500—but can bring in $500 to $2,000 or more per month in passive income. The more sites you create, the more your income can grow, making this model highly scalable. 

Lastly, local lead generation offers a sustainable income stream with far fewer complexities than dropshipping. You build, rank, and rent out as many sites as you want, each providing consistent and predictable cash flow.