A new study by Omnisend analyzed shopping data on two of the biggest ecommerce rivals of the past year – Temu and Amazon – looking at differences in cost and product quality; and how often inventory matched between the two.
Temu 40% cheaper on average
The study found that on average, buyers can save 40% ($13.37 per product) by shopping at Temu.
It’s not all good news though, the new U.S. tariffs will eliminate “de minimis” on Chinese goods, which means previously excluded products shipped direct to consumers and costing less than $800, will now be subject to the new tariffs, leading to cost increases for American consumers.
The survey also found that 42% are opposed to new tariffs on Chinese goods (34% are in favor, 24% undecided) and 56% of Americans are worried that the tariffs will drive up prices on Chinese goods.
Twenty-nine percent of Americans say that if prices go up on Chinese marketplaces like Temu, they would immediately stop buying or buy less. More than 20% said they would still shop there unless the increase is noticeable (20% or more), which it won’t be.
Temu won’t be too concerned about this for two reason, even if consumers are. Firstly, the tariff of 10% will barely impact the massive discounts available on Temu. In reality it will merely reduce the savings on Temu compared to Amazon from around 40% to around 34% and a saving of over a third is still attractive. Secondly, Temu are heavily focused on recruiting in-country sellers and all duty will have been paid on these goods already.
Amazon trumps Temu on trust
In a complementary survey of U.S. consumers fielded last week, 53% of respondents shopped on Temu in the last year, with 5% shopping several times per week, yet only 5% say they trust Temu. This is compared to 75% who have shopped on Amazon, 18% doing so more than once per week, with 87% trusting the platform.
Like for like products
Omnisend’s research found that 77% of Amazon products have a similar product on Temu, with every tenth product being identical. However, the research further discovered that many bargains on Temu appear to be product knockoffs, and many product reviews may have been manipulated.
Temu may still be able to undercut the prices of domestic products on Amazon as they have such high margins. However, I expect consumers will soon see price hikes, particularly in categories including consumer electronics, beauty, children’s clothing and household goods – all categories that are popular on Temu. If manufacturers have a reason to raise prices – even on existing inventory – they will.
– Greg Zakowicz, senior ecommerce expert, Omnisend
Key Findings
- Temu offers significantly steeper and more frequent discounts than Amazon, with some product categories seeing discounts as high as 98% vs. 67% on Amazon.
- Brand imitation concerns: The study uncovered Temu products that closely resemble well-known brands, often with modified packaging, blurred logos, or removed branding.
- Amazon maintains a major trust advantage, with products averaging 50,000 reviews per listing compared to just 1,500 on Temu.
- While conducting the research, Omnisend researchers observed disappearing reviews and instances of poorly reviewed products being removed and reuploaded, suggesting potential review manipulation.
- Temu’s strongest category is Fashion & Beauty, where it has close matches for 94% of Amazon’s listings. The least matched category is Food & Beverage.
- Automotive is the only category where Amazon beats Temu on price, offering products 12% cheaper on average.
The Amazon shipping advantage
Even though Temu offers a low price, there are some aspects where the company loses to its competition. First of all, the shipping time for items ordered on Temu is much longer than those ordered on Amazon or any other U.S.-based ecommerce platform. This will naturally be reduced as more and more domestic sellers adopt Temu as a channel and ship from local inventory.
Furthermore, one of the most striking findings from Omnisend’s report is the potential imitation of branded products on Temu. The study uncovered examples of well-known items being sold with brand names blurred or removed, raising questions about the trustworthiness of the platform.
Temu’s aggressive discounting strategy is reshaping consumer expectations around pricing. With discounts reaching as high as 72%, they are conditioning shoppers to expect ultra-low prices across multiple categories, particularly in Fashion & Beauty, where they have a 94% match with Amazon. It is important to say that most of those discounts are permanent, meaning they create the illusion that the low price is temporary even though it is not. If this trend continues, it could put pressure on other marketplaces, including Amazon, to rethink their pricing strategies and supplier relationships.
– Greg Zakowicz, senior ecommerce expert, Omnisend
