Temu Is Losing Millions of Dollars to Send You Cheap Socks

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Temu, the Chinese-owned ecommerce platform, is making a splash in the US with unbelievably low prices. But behind the scenes, the tech giant is losing billions each year and squeezing small manufacturers in China. 🎨: Andriy Onufriyenko/Getty Images

for less than a dollar, with free international shipping, is surely too good to be true. But in the lightning deals section of Temu, the prices are all unbelievable—50 hair bands for $1.17, 10 pairs of socks for $3.87, six lip balms for $0.97.

“We are working for Temu for free so that Temu can attract more American customers,” says Sandy, who started selling pet products on the platform soon after it launched, speaking on condition of anonymity to avoid reprisals. Temu did not respond to a request for comment. In the US, most of Temu’s subsidies come in the form of free international shipping. WIRED looked at multiple analyses of shipping costs, including data from financial research company Haitong International Securities Group, which suggests that the cost of shipping even a small package from Guangzhou, where Temu has its warehouses, to the US is around $14.

 

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