Tem sellers show massive discounts to increase Perdive savings and get customers. The strategy works.
The TEU, which started in September 2022, grew rapidly. Until December 2023, he captured 17% of the US dollar market – five lower, the general of the dollar, more – according to Reuters.
Tema prices are certainly low. The recent comparison of Omnisnd has shown that shoppers can often save 40% on Tem versus similar products on Amazon (but not Amazon Reaw).
However, the success of the seller on Tem is related to the psychology of discounts as savings.
The success of Tem partially joined the psychology of discounts.
Cheap headphones
Get a hypothetical contractual manufacturer located on the Tem. Among the many products produced by the company for different brands are headphones with enthusiasm they sell for $ 99.
This manufacturer-term seller has materials, models and expertise to create an almost identical set of headphones. The company will cease to use the patented technology of the original brand patented and coupe-bursting noise and improves Easpies.
“Almost identical” headphones cost $ 5 for production. This company states headphones on the Tem at the normal price of $ 99 with a 75% discount. This net price of $ 24.75 could lead to greater profit than it gets from building a top version of the client.
This scenario created is an extreme instructive goal.
Price
Remember, Temu is a market with thousands of retailers. Tem des not buy and sell supplies. It connects manufacturers and brands with shoppers.
Prices are not Temu, but the prices of sellers. Yet the success of Tem has joined the low -cost and possibly low quality alternatives to popular and branded products.
For example, the Omnisnd comparison found that Tema reported an item that “matched” the product in the Amazon’s Camera and Photo Asing category about 96% of the time. None – 0.0% – of these Tem items were the same brands or known quality as on Amazon. Instead, the items were unmarked and general and “very similar to known brands, often with blurred logos or modified packages”, Omnisend.
For the same items and brands, Tema prices are roughly the same as Amazon.
Temu discounts
Sellers on Amazon and Tem differ significantly about the frequency and love of discounts.
“While Amazon offers a discount on approximately 47% of their products, 65% of Tem lists are marked. In addition, some items see discounts up to 98%in time, 67%compared to the highest Amazon discount, ”says Omnisnd.
Together, deep discounts of Temu make the products feel significantly cheaper. This is part of psychology.
For example, a study in February 2018 in the academic magazine “Fashion and Textiles” found that deep discounts could increase the perception of shoppers’ savings, causing them to feel as if they got better.
The study noted that discounts cause an emotional impact on buying perception of savings, quality and value.
These findings are more or less common sense for seasoned traders and exactly what is happening to the Tem.
Perception
Yet deep and frequent discounting can be dangerous. Significant markings can lead to doubts about the quality of the product or authenticity and correctly.
Imagine a machine with three dials:
It can manipulate codebooks. The change of one has the opposite effect on the other. The correct mixture leads to dirty electronic trading.
Many Tem dealers learned that the conversion of punctured savings dials overcomes the related decrease in the quality of the puncture. Tem customers are likely to realize that they buy what could be a subpar, but punctured savings are worth it.
Certainly, the success of Tem is not only relying on psychology. “Many TEU products are available directly from consumer manufacturers that product prices remain low by handing over distributors and other handling fees to third parties,” explained Greg Zabowicz, Omnisnd e-mail expert. “They also use the least expensive method of transport to further reduce princes.”
However, the quality exercise is a lesson for all electronic trading sellers. Each Mercant has access to a project to buy a project with different dials, buttons and switches. Good marketing is to tune the mix for success.