Are shoppers ditching Amazon for this rising online shopping app? Find out why and where you should be shopping!
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In the ever-evolving landscape of online shopping, a new contender has emerged, challenging the behemoth that is Amazon.
Temu, a China-based retailer, is gaining traction among consumers, and it's not just because of its catchy name.
Amid the economic ripples caused by Trump-era tariffs, shoppers are weighing their loyalty and their wallets. But what's driving this shift, and more importantly, where should savvy seniors be clicking for their goods?
When it comes to trust, Amazon still reigns supreme. According to a study and survey by Omnisend, an e-commerce marketing platform, a whopping 87% of respondents trust Amazon, with 7% saying that they shopped on the platform within the last year and 18% saying they shopped there more than once a week.
But trust isn't the only factor at play here. Despite only 5% of survey respondents expressing trust in Temu, 53% admitted to shopping there in the past year.
It seems that when prices are low enough, consumers are willing to take a leap of faith.
The study revealed a compelling reason for this trust-tradeoff: cost savings. On average, consumers can save 40% more, or $13.37 per product, by shopping at Temu rather than Amazon.
However, with new US tariffs potentially increasing prices, 29% of consumers said they would stop or reduce their purchases from Chinese marketplaces like Temu, and another 20% would follow suit if the price hikes were noticeable.
Interestingly, about 40% of survey respondents indicated they'd be willing to pay more for US-made goods.
Source: The Wall Street Journal / Youtube.
But as Greg Zakowicz, a senior e-commerce expert at Omnisend, points out, there's often a gap between what consumers say and what they do.
He added that “consumers are very much value-minded," so it’s hard to believe that consumers would suddenly be willing to pay more.
While the survey didn't delve into product quality, it did touch on trust in the products themselves. Many consumers seem to be making a trade-off, opting for lower prices despite potential concerns about the quality of Temu's offerings.
With 77% of Amazon products having a similar counterpart on Temu, and every tenth item being identical, the temptation is clear.
However, the study also noted instances of manipulated reviews and knockoff products on Temu, which raises red flags for the discerning shopper.
Amazon isn't sitting idly by. The company has responded to the low-cost competition with Amazon Haul, a niche site offering lower-cost products that take longer to ship from China. This move suggests that Amazon recognizes the threat posed by retailers like Temu and is adapting to meet the demand for more affordable options.
Also read: Will these proposed tariffs strain your food budget? Here’s what we know
Both Temu and Amazon have responded to the survey and study, defending their platforms.
Temu shared that "the survey results confirm what millions of shoppers already know ‒ Temu offers substantial savings on the same or similar products sold elsewhere by cutting out unnecessary middlemen markups and costs."
Temu also added that "as a young platform that’s just two years old, we know trust is built over time. The number of new and returning customers reflects the value they find in our platform. We’ll continue working to improve every part of the experience."
Source: NerdWallet / Youtube.
Meanwhile, Amazon defended themselves against the survey claiming that 77% of Amazon products were similar to some on Temu by saying that, "Amazon works hard every day to offer low prices in our store across our wide selection of products. We asked to see specific and pertinent details required to investigate the claims and were denied the opportunity to do so."
Our advice? Be a savvy shopper. Compare prices, but also consider the value of trust and quality.
Recommended for you: The surprising winner of America's favorite supermarket title—it's not what you think!
Source: CNBC / Youtube.
Have you shopped at Temu or Amazon Haul? What was your experience? Do you prioritize savings or quality, and how do you navigate the online shopping landscape? Share your thoughts and tips in the comments below!
Temu, a China-based retailer, is gaining traction among consumers, and it's not just because of its catchy name.
Amid the economic ripples caused by Trump-era tariffs, shoppers are weighing their loyalty and their wallets. But what's driving this shift, and more importantly, where should savvy seniors be clicking for their goods?
When it comes to trust, Amazon still reigns supreme. According to a study and survey by Omnisend, an e-commerce marketing platform, a whopping 87% of respondents trust Amazon, with 7% saying that they shopped on the platform within the last year and 18% saying they shopped there more than once a week.
But trust isn't the only factor at play here. Despite only 5% of survey respondents expressing trust in Temu, 53% admitted to shopping there in the past year.
It seems that when prices are low enough, consumers are willing to take a leap of faith.
The study revealed a compelling reason for this trust-tradeoff: cost savings. On average, consumers can save 40% more, or $13.37 per product, by shopping at Temu rather than Amazon.
A survey and study revealed that while 5% of respondents trusted Temu, 53% had shopped there, suggesting price wins over trust. Image source: CNBC / Youtube.
However, with new US tariffs potentially increasing prices, 29% of consumers said they would stop or reduce their purchases from Chinese marketplaces like Temu, and another 20% would follow suit if the price hikes were noticeable.
Interestingly, about 40% of survey respondents indicated they'd be willing to pay more for US-made goods.
Source: The Wall Street Journal / Youtube.
But as Greg Zakowicz, a senior e-commerce expert at Omnisend, points out, there's often a gap between what consumers say and what they do.
He added that “consumers are very much value-minded," so it’s hard to believe that consumers would suddenly be willing to pay more.
While the survey didn't delve into product quality, it did touch on trust in the products themselves. Many consumers seem to be making a trade-off, opting for lower prices despite potential concerns about the quality of Temu's offerings.
With 77% of Amazon products having a similar counterpart on Temu, and every tenth item being identical, the temptation is clear.
However, the study also noted instances of manipulated reviews and knockoff products on Temu, which raises red flags for the discerning shopper.
Amazon isn't sitting idly by. The company has responded to the low-cost competition with Amazon Haul, a niche site offering lower-cost products that take longer to ship from China. This move suggests that Amazon recognizes the threat posed by retailers like Temu and is adapting to meet the demand for more affordable options.
Also read: Will these proposed tariffs strain your food budget? Here’s what we know
Both Temu and Amazon have responded to the survey and study, defending their platforms.
Temu shared that "the survey results confirm what millions of shoppers already know ‒ Temu offers substantial savings on the same or similar products sold elsewhere by cutting out unnecessary middlemen markups and costs."
Temu also added that "as a young platform that’s just two years old, we know trust is built over time. The number of new and returning customers reflects the value they find in our platform. We’ll continue working to improve every part of the experience."
Source: NerdWallet / Youtube.
Meanwhile, Amazon defended themselves against the survey claiming that 77% of Amazon products were similar to some on Temu by saying that, "Amazon works hard every day to offer low prices in our store across our wide selection of products. We asked to see specific and pertinent details required to investigate the claims and were denied the opportunity to do so."
Our advice? Be a savvy shopper. Compare prices, but also consider the value of trust and quality.
Recommended for you: The surprising winner of America's favorite supermarket title—it's not what you think!
Source: CNBC / Youtube.
Have you shopped at Temu or Amazon Haul? What was your experience? Do you prioritize savings or quality, and how do you navigate the online shopping landscape? Share your thoughts and tips in the comments below!
