Can You Dropship on Temu? What You Need to Know
Imagine running a business where you don’t need a warehouse, upfront inventory, or massive startup costs—just a laptop and a Wi-Fi connection. That’s the simplicity of dropshipping. Dropshipping is a popular business model in ecommerce, offering entrepreneurs an opportunity to run an online business without worrying about managing inventory or picking, packaging, and shipping products to the customers. Dropshipping is revolutionising the way entrepreneurs dive into ecommerce.
Platforms like AliExpress have long been a go-to for this model, but in recent years, another platform has captured attention: Temu. Known for its low prices and huge inventory, Temu has become one of the most downloaded shopping apps, which seems like a dream come true for aspiring business owners. However, is it really the golden ticket? Can you dropship with Temu, and does it fit into the dropshipping business model? Here’s everything you need to know to start Temu dropshipping.
What is Temu and how does it work?
Owned by Chinese company PDD Holdings (Temu's parent company), Temu is an ecommerce marketplace offering products across various categories, from electronics to fashion, sourced mostly from Chinese manufacturers. Temu was first launched in the US in late 2022, and since then, it has become known for its affordable products, constant marketing, and gamified shopping experience.
Temu launched in Australia in March 2023, offering free shipping on all orders and free returns within 90 days. Research from Roy Morgan found that in the past 12 months, nearly 3.8 million Australians shopped at least once with the retailer, with a monthly customer growth rate of 32 per cent. Most were repeat or high-frequency buyers making four or more purchases in the year amid a deepening cost-of-living crisis, driven by its aggressive marketing strategies, offerings like free delivery, and a gamified shopping experience.
With its lucrative offerings, Temu has emerged as a competitor to platforms like AliExpress. But for entrepreneurs exploring dropshipping businesses, the question remains: can Temu be integrated into your own store and how can you dropship Temu products?
The Temu dropshipping business model allows entrepreneurs to sell products without holding inventory. The idea revolves around reselling products from Temu’s ecommerce marketplace. You choose products to resell on your online store and create product listings on your online store or social media. When a customer places an order, you place the order directly on Temu and enter your customer’s shipping address. Temu then fulfils the order and delivers products directly to your customer.
If you’re looking to dropship from Temu, you should know that Temu doesn’t offer blind dropshipping. Your customers will know the product source, which can impact your brand reputation. Additionally, the products are delivered in Temu’s orange packaging, which can impact brand awareness and customer experience.
Key features of Temu
Let’s look at some key features of Temu dropshipping:
Low prices
One of the most attractive features of Temu dropshipping is its incredibly low pricing. When the product prices are lower, the potential to make profits is higher. It also allows you to price products attractively compared to other platforms, making your dropshipping business appealing to price-sensitive markets.
When you dropship from Temu, the platform directly connects consumers with millions of merchandise partners, manufacturers, and brands that sell exclusively on the Temu app or Temu’s ecommerce marketplace, eliminating many intermediaries. This allows resellers to purchase items at prices that are quite lower than those on dropshipping platforms like AliExpress.
Extensive product catalogue
When you use the platform for dropshipping, Temu offers access to its substantial product catalogue with diverse products across categories like electronics, fashion, home and lifestyle products, garden accessories, and more. With such an extensive catalogue, resellers can find unique and niche products trending in the ecommerce market, which can help stand out in the crowded ecommerce marketplace. The dynamic and frequently updated catalogue helps you adapt to seasonal trends and changing customer demands. This huge inventory allows resellers to scale their online stores by offering a wide range of products without worrying about inventory costs. Finally, Temu’s products are sourced from mostly Chinese suppliers, which makes for competitive pricing.
Fast shipping in some regions
One advantage of Temu’s logistic services is that shipping can be faster compared to other platforms such as AliExpress, especially in regions where Temu has optimised its delivery network. Quicker delivery times can also set you apart from competitors using slower fulfilment options. Additionally, Temu offers free shipping which is a major incentive for both resellers and customers. Faster shipping meets customer expectations, thereby reducing the risk of complaints or cancellations and encouraging repeat customers. Remember: It’s crucial to verify shipping times for the regions you target, as delays in other areas could harm your brand image.
Is dropshipping allowed on Temu?
Temu doesn’t officially support dropshipping like AliExpress. The platform recommends customers purchase products directly from its official website. However, this platform can still prove useful to a regular dropshipping business with some strategic fine-tuning.
Temu dropshipping has sparked discussions in the dropshipping world about its impact on the traditional dropshipping model. While both models share some similarities, they differ in fundamental ways. Traditional dropshipping involves retailers collaborating directly with suppliers. In contrast, Temu acts as an intermediary, connecting retailers with a network of suppliers. This limits one-on-one interactions between retailers and suppliers. Additionally, Temu streamlines the supplier discovery process, making it more efficient for retailers to find products to sell in their online stores. Direct collaborations with suppliers can provide unique branding opportunities that the Temu dropshipping model may not be able to offer.
Policies regarding dropshipping
Temu doesn’t offer direct dropshipping services like AliExpress. However, its policy doesn’t explicitly ban dropshipping. Sellers should adhere to the platform’s guidelines to avoid any potential issues. Here’s what you need to know about their Temu dropshipping policies:
No official dropshipping support
Unlike dropshipping platforms like Dropshipzone and AliExpress, Temu doesn’t officially support dropshipping. There are no built-in features such as bulk order processing for multiple customers, automation tools to sync orders with your store, or integration with popular ecommerce platforms like Shopify.
No branding opportunities
When you dropship from Temu, the products will be delivered in Temu’s orange packaging, which includes their branding and promotional material. This prevents the dropshippers from customising packaging, inserting branding elements, or adding thank-you notes. Unlike blind dropshipping, where the supplier's identity remains hidden, Temu’s packaging reveals that the product came from their marketplace, which can result in customer dissatisfaction and increased chargebacks.
Limited supplier transparency
Temu doesn’t disclose detailed information about its dropshipping suppliers, such as their manufacturing practices or stock availability. This limits your ability to verify if the suppliers are reliable or anticipate inventory issues.
Shipping and logistics limitations
Temu’s logistics services are designed for buyers rather than dropshipping sellers. As Temu's suppliers offer free shipping, their shipping times can be inconsistent, especially for international orders, compared to express shipping options on traditional dropshipping platforms. Inconsistent shipping may lead to customer complaints and increased refund requests, especially if customers expect fast delivery.
Differences from traditional dropshipping platforms
Temu dropshipping operates differently compared to traditional dropshipping platforms like Dropshipzone and AliExpress. Let’s check out some key differences between traditional dropshipping platforms and the Temu dropshipping model.
Dropshipping integration tools
Traditional platforms provide apps that seamlessly integrate and sync your online stores and dropshipping account, which simplifies dropshipping operations. For instance, the Dropshipzone Shopify app easily syncs your Shopify store and Dropshipzone account, which helps to:
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Import products to your store
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Sync product images and descriptions directly from Dropshipzone
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Filter products by free shipping and international delivery
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Place and manage all your Dropshipzone orders directly through the app
In contrast, Temu has no tools for syncing products with your ecommerce store or automating the dropshipping process. Sellers must manually manage listings and orders.
Dispute resolution
Traditional dropshipping platforms, such as Dropshipzone, provide dedicated support for dropshippers, with processes designed to help sellers resolve disputes efficiently and provide a better positive experience. Read more about Dropshipzone’s customer service here. In contrast, Temu focuses on protecting only its direct customers, leaving dropshipping sellers to manage their own disputes.
Shipping and delivery
Traditional dropshipping platforms have better processes and systems in place to ensure timely delivery. They clearly communicate their shipping rates and times to make it easier.
Dropshipzone provides tiered shipping rates for 16 zones. Every Australian postcode falls under one of these zones. Some products may also be eligible for free delivery. This ensures pricing is tailored to the delivery postcode. Furthermore, Dropshipzone Suppliers ship from their distribution centres in Australia using their chosen courier. The couriers are chosen depending on the item weight, package size and individual shipping costs. The shipping time will vary for each courier, however, all the information will be clearly communicated to avoid any issues.
In contrast to traditional dropshipping platforms, Temu’s shipping times are not always predictable and can be inconsistent, which can greatly impact customer satisfaction.
Alternatives to dropshipping with Temu
If Temu’s limitations make it unsuitable for your dropshipping business, there are several dropshipping platforms and marketplaces that offer features tailored to the dropshipping model. These platforms provide better integrations, customisation options, and supplier reliability.
Let’s explore some alternatives to dropshipping with Temu:
Dropshipzone
Dropshipzone is Australia’s B2B2C dropshipping platform that connects Retailers and Suppliers. Suppliers showcase their products on the platform, while Retailers can pick and choose products to sell in their online stores. Suppliers store the inventory and pick, pack, and ship products directly to the customers when a Retailer places an order on the Dropshipzone platform. This enables the Retailers to focus entirely on selling their products and optimising their marketing strategy. Dropshipzone has developed a Shopify app store that makes running dropshipping business easier. However, what makes Dropshipzone stand out among other dropshipping apps is that you get access to pre-vetted and reliable Suppliers, which means you don't have to worry about inconsistent product quality.
Dropshipping with Dropshipzone is hassle-free. It enables Retailers to maintain a good reputation by supplying high-quality products at competitive prices. You can access tens of thousands of popular products. Retailers can set their own prices, which helps them stay profitable. Dropshipzone Suppliers have warehouses in Australia, which makes for quick shipping. Additionally, Dropshipzone has partnered with reliable shipping companies, ensuring the fastest shipping times and affordable shipping costs.
With no minimum order quantities, no hidden costs, and no hidden payments, Dropshipzone is your go-to solution to sell online. Sign up for free to get started.
AliExpress
AliExpress is a global ecommerce marketplace based in China. While people can buy products directly from AliExpress, marketplace sellers can use AliExpress to dropship their products. AliExpress dropshipping is a retail fulfilment method where retailers don’t hold the products they sell on their ecommerce store. When a customer places an order from a retailer’s store, they purchase the product from AliExpress dropshipping supplier who is then responsible for packing and shipping the product directly to the customer. When dropshipping with AliExpress, you act as the main storefront that customers can visit and place orders from.
You can easily find unique dropshipping products on AliExpress. If you have recently seen viral products on TikTok or Instagram, there is a big chance you will find them on AliExpress. AliExpress dropshipping suppliers have experience in handling global dropshipping. The drawback is that the standard shipping can take about 2 to 6 weeks, depending on your customers’ locations. You can opt for express shipping, but it will affect your profit margins. To maintain profitability, ensure your final pricing covers the product cost, any import taxes or GST, and additional shipping fees that may eat up your profits. Careful pricing will help you balance faster delivery with sustainable earnings.
Spocket
Spocket is a dropshipping platform that connects your online store and wholesale suppliers in the US and the EU. It can easily sync with your online store and all orders automatically appear in your app. Spocket can be integrated with multiple ecommerce platforms such as Shopify, BigCommerce, Wix, and WooCommerce. To know more about how Spocket works, click here.
Spocket allows you to choose the best products to sell from multiple suppliers all over the world. You can order product samples right from the dashboard to easily test products and suppliers and build a reliable dropshipping business. One of the biggest advantages Spocket offers is quick shipping, which makes it so popular among dropshippers. However, due to its popularity, the app has thousands of users, so there’s a high chance that hundreds of people may be selling the exact same products as you. This can result in high competition, leading to price erosion.
Furthermore, Spocket is a paid app and comes with 4 pricing plans. The plans can be expensive for beginners.
SaleHoo
SaleHoo Dropship makes running an online store easy. With SaleHoo Dropship, you can quickly fill your Shopify store with popular, high-profit products. When you make a sale, you notify your dropshipping supplier from your SaleHoo dashboard and pay for the products. Then, your supplier ships the product to your customer. The app allows you to automate your profit margins or set your own pricing.
With SaleHoo Dropship, you’ll get instant access to over 1,000 pre-vetted suppliers so you know your business is in safe hands. You can view all your products and dropshipping supplier details on your dashboard, allowing you to keep track of your business at a glance. Product cost, sales volume, shipping information, supplier rating and high-quality images are clearly laid out, so you can access them in seconds.
SaleHoo offers two plans - Basic plan and Premium plan. The Basic Plan is $270/year, and the Premium Plan is $970/year. SaleHoo Dropship integrates with Shopify to automate your dropship store.
Using Temu to grow your dropshipping store
Temu dropshipping can be a powerful tool for expanding your online business if used strategically. By identifying trending products and sourcing the right items for your store, you can tap into growing demand and differentiate your store from your competitors.
Identifying trending products
One of the biggest advantages of Temu dropshipping is access to a vast product catalogue, including trending and viral products across various categories. Here's how you can find trending and viral products to sell in your store.
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Analyse bestsellers: Regularly review Temu's bestsellers lists and top-rated products to spot emerging trends. These products have great sales potential and can maximise your profit margins.
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Monitor social media: Leverage social media platforms like TikTok, Instagram, and Facebook to see what products are gaining traction. Search Temu's product catalogue to find these products for your store.
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Seasonal trends: Capitalise on seasonal or holiday trends by sourcing relevant products in advance, ensuring your store stays ahead of customer demand.
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Customer reviews: Check customer reviews on product listings to gauge product quality and satisfaction, ensuring you only sell products with high potential for positive customer experiences.
Sourcing products
When using Temu dropshipping, sourcing quality products is crucial to maintain customer trust and build your brand. Here's how to do it effectively:
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Vet your suppliers: Not all products on Temu are of high-quality. Focus on items from suppliers with positive reviews and proven track records.
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Focus on product quality: Choose products that receive consistent praise from customers for their quality, durability, and performance. This can help reduce customer return rates and improve the overall shopping experience.
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Compare suppliers: Temu often features listings from multiple suppliers offering the same product. Compare suppliers that offer the same products. Compare their prices, product quality, order fulfilment times, and reviews to find the most reliable supplier. Pay close attention to the price difference between suppliers to ensure you're getting the best value without compromising on quality or delivery speed. Additionally, when choosing suppliers, make sure they are ensuring buyer protection, including clear return, refund, and dispute resolution policies, to safeguard both your business and customers.
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Order product samples: Before you list products in your store, order samples to verify their quality and order fulfilment times. This ensures you deliver what customers want - good quality products with fast shipping.
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Monitor shipping times: Fast and consistent shipping is crucial for customer satisfaction. Find suppliers who offer reliable shipping to minimise delays and improve customer satisfaction.
Summary
Dropshipping can be a viable business model, especially for those who want to start an ecommerce business with minimal upfront investment. However, dropshippers must prioritise product quality and fast, reliable shipping, as they are the key factors to success in exceeding customer expectations and thriving in the dropshipping business. Partnering with the right suppliers is crucial, as their performance directly affects your success. Choosing the right dropshipping company is equally important. Look for an ecommerce platform that offers efficient logistics, supplier reliability, and competitive pricing. Many entrepreneurs are turning to Temu for dropshipping due to its competitive pricing, wide range of products, and the ease of accessing global suppliers, although it's important to carefully evaluate suppliers to ensure product quality and reliable order fulfilment. If you plan to use Temu for dropshipping, carefully vet products, monitor their order fulfilment times, and manage the customer experience to overcome branding challenges. Choosing the right dropshipping company and planning well can help you build a successful and long-lasting business.