Temu Dropshipping: A Step-By-Step Guide For Beginners 2024
Want to start a side hustle in 2024? In today’s topic, we’ll be talking about the Temu dropshipping business model that everyone’s been talking about lately. You’re about to find out;
- What Temu dropshipping is
- Advantages and disadvantages of Temu dropshipping
- If Temu dropshipping is legal
- How to start dropshipping from Temu
- Temu dropshipping alternatives
Started in 2022, Temu is a popular online marketplace owned and operated by PDD Holdings, a Chinese eCommerce conglomerate. It has grown exponentially, brushing shoulders with household names including AliExpress, Amazon, eBay, Alibaba, Shein, and the rest. The online store boasts over 100 million users in the US, Canada, the UK, and Germany, among other countries.
Temu has also attracted dropshippers and you can tell this by a simple check on Google trends on how the interest of the search terms ‘Temu dropshipping’ has spiked in the last few months.
What is Temu Dropshipping?
Temu dropshipping is basically dropshipping on the platform as a seller or using the platform as your supplier. In the first instance, you need to have an inventory of the goods, while in the second, you don’t need inventory. Now that you’re looking for a side hustle or extra source of income, you probably have no money for inventory, so your option is to use Temu as your supplier.
Is Temu Dropshipping Allowed?
First things first. Are you even allowed to dropship on Temu? Definitely you want to establish a legit business without infringing on any party’s policies or even having a date with the authorities, so this is something you need to know before starting out.
On the official website, it’s clearly stated that dropshipping isn’t supported. But should you give up just from this? Not just yet.
You can dropship from Temu now that the company clearly says you can purchase an item directly from their site. After deep screening of the policy and from my understanding, what Temu means by ‘not supporting dropshipping’ is that there’s no platform specifically designed for dropshippers, for example, AliExpress DS Center in AliExpress dropshipping. But there’s a category with handpicked products for dropshipping…Hurrah!
That said, it’s safe to say you can dropship from Temu, but there are some challenges that we’ll explore later.
Why Dropship From Temu?
There are many platforms where you can dropship from, for example, AliExpress, Amazon, Shein, Alibaba, and so on. But why Temu, a new company, yet we have renowned marketplaces that have been in business for years? Well, Temu is the best choice for several reasons.
- Wide product range
- Unbeatable prices and discounts
- Faster shipment
- Flexible return policy
Temu has a wide range of products in 29+ categories. It matches the household names in the industry talk of Alibaba and AliExpress, so whether you want to sell fashion items, watches & jewelry, appliances, toys & games, pet supplies, or health & beauty products, Temu has everything in store for you. Interestingly, you can find many items sold on other platforms here.
Temu is known for its low prices, and this is among the reasons why the company has grown exponentially in just one year. You can get stuff to sell from as low as $1 and still make some good profits. Discounts, too, are in plenty.
While the majority of the sellers are in China, Temu has its headquarters here in the USA and warehouses, too, where most of the products sold are stored. This gives you the edge when it comes to shipping, as your customers will get their orders pretty fast, though there are isolated cases where there are delays, which is normal in dropshipping.
Perhaps the biggest win is the generous 90-day return policy, which gives you a boost when it comes to customer confidence. Remember, buyers are more confident in buying from you if you offer them an extended return window.
The Challenges – That Orange Packaging
Temu is indeed a great supplier for your dropshipping business, but there are some shortcomings you need to be aware of and probably find solutions to seal the loopholes.
The biggest challenge is the fact that Temu sends all packages in the company’s trademark orange package, and this automatically tells the customer that the item is from Temu. Next time, they might order directly from Temu.
Of course, you might also encounter issues with product quality and delayed shipping times, among others, but none of these should be the reason you’ll abort your mission. Temu dropshipping is not dead!
How To Start Dropshipping From Temu
We understand that you’re a beginner and probably you don’t know where to start or how to advance. In this segment, we’ve shared a step-by-step guide on how to launch your Temu dropshipping business.
“84% of e-commerce retailers find that the most significant hurdle in starting a dropshipping business is locating a reliable supplier” Printful
Of course, you have found a reliable supplier, Temu, so you’ve already cranked up the engine. Let’s start revving up.
Step 1: Product Research
Even though there are no exact figures out there, it’s generally agreed that just 10-20% of dropshipping businesses succeed, and one of the reasons for the downfall of many is selling the wrong product.
To start a successful Temu dropshipping business, you need to find a winning product. Below are some of the characteristics of a winning product;
- Not available locally
- Solves a problem
- High profit margins
- No competition
- Not prohibited
A good dropshipping product has a ‘wow’ factor, isn’t available at your local store, and solves a problem. The price points should also guarantee high profit margins (20-40%), and the product should be small to avoid high shipping costs. Of course, there shouldn’t be many sellers with the same product, and the item shouldn’t be on the banned list.
Now, this is really important; how do you find the best product to sell on Temu?
Well, as a beginner, you might want to go the long way – manual product research. But this can be hectic and not effective in the long run.
Let me explain why.
There are millions of products on Temu, and going through the categories one by one might be a daunting task. Besides, you won’t be making data-driven decisions.
The best approach is using a product research tool such as Easync, which shows you the products that are in demand in real time. It further crunches up the crucial numbers so you can predict the profitability of a product.
I must also mention the Temu Product Analysis Tool, which offers detailed product data on orders, profit, order volumes, product ratings, competitors, and so on. All this data can help you determine if an item can make a winning product.
Step 2: Choosing a Sales Channels
Finally, you’ve found that perfect product from Temu, so the next big question is, where will you be selling? A sales channel is a crucial consideration as it affects the overall success and sustainability of your business.
Now, there are several sales channels, each with its fair share of advantages and disadvantages. You can opt to sell on marketplaces or create a store.
(a) Selling on Marketplaces
Established marketplaces such as Amazon and eBay are good platforms to sell your products, especially as a beginner. The fact that they are already established means you already have an audience, so you don’t need to spend time marketing. You can focus on finding the best products to sell and offering customer support.
But you need to know that there may be charges. For example, I pay $39.99 a month for the Amazon Professional Plan, but you can start with the Individual Plan, where you pay $0.99 / item sold. As for eBay, you pay insertion fees and final value fees.
(b) Creating Your Store
If you want total control over your business and brand, it’s better if you invest in your own store. You can opt to build your online store from scratch and have it aligned with your branding for consistency. The other option is using eCommerce builders such as Shopify, WooCommerce, and Wix. Either way, there will be costs involved.
To create a website from scratch is the most expensive as you need to hire a developer, buy a domain, hosting, integrations and so on. The easy way out is using prebuilt platforms as they come with everything you need to start selling professionally and cost a fraction – monthly subscription fees only. Shopify subscription costs, for example, start at $32.
Now, what’s the best choice?
Well, it depends. For newbies, however, we recommend selling on marketplaces as there’s already an established client base. But you can still go for a personal store if you want to have a tight grip on your business and avoid account bans and restrictions.
Step 3: Creating Listings
You now have a product(s) in mind and a selling channel, the next step is product import. This is an important stage and can be the deal maker or breaker as product listings affect aspects such as product visibility and conversion. Make sure to write proper product titles optimized to rank on the SERPs. All the required information, including product features, estimated delivery time, and proper images, should be included.
Next, you need to calculate your prices. Check around to make sure your pricing remains competitive so you can at least start getting orders by taking advantage of lower pricing. Make sure your final pricing includes the buying cost, all additional fees, and your profit margin.
When starting, product import and pricing can be done manually, but as you advance and start getting more orders, you’ll have to think of a solution like Easync that lets you import bulk products in one click and stay on top of repricing without human errors.
Step 4: Marketing
You now have a running store with products and everything required for a purchase to be made. When I was launching my first store, I was already tired at this stage, but my mentor, Stanley Nieh of Do Dropshipping, was all over me, reiterating that it wasn’t time to relax.
Be keen here, as this is where many businesses start failing.
You need to lay down a marketing plan to promote your products. Remember, there are many other dropshippers so you need to stand out. Your marketing strategy will greatly rely on your sales channel.
Some of the easy strategies to focus on include social media such as TikTok, Facebook, and Instagram. For those with personal websites, SEO will also be key if you want inorganic traffic, but to rake in sales quickly, ads do better. Marketplaces such as Amazon and eBay also have inbuilt marketing tools.
You should also consider perks such as free shipping. Target selling products that offer free shipping or have a strategy aiming at offering free shipping options. According to statistics, 90% of consumers shop more online if there’s the free option while 24% agree that they can spend more just to qualify for free shipping.
But that’s not all.
You also need to focus on offering steadfast customer support. Provide multichannel support and ensure that no message falls through the cracks. Importantly, communicate to customers regularly on the status of their orders.
Step 5: Fulfilling Orders
Your store should be running now, and orders are starting to trickle in. Even though it’s one or two orders, it’s quite encouraging, but as Nieh always suggests, there’s no time to relax.
You need to make sure that all orders are fulfilled. That said, it’s your responsibility to transfer the order to Temu, together with the customer details, and Temu will handle the rest. But ensure there’s constant communication with the customer on the order of their status. Ensure there’s a way for them to track their order in real-time, as statistics show that 90% of consumers want to be able to track their orders.
Scaling Your Temu Dropshipping Business
One thing I have learned about dropshipping is that there’s no time to sit back. You need to think of outside-the-box strategies to make your business succeed, remain sustainable, and be future-proof amid the ever-changing eCommerce landscape. In this last step, we’re going to talk about scaling your business.
- 3PL Fulfillment Partner
Considering your Temu dropshipping business is a side hustle, or you don’t have much time to run your business, you should think of putting the business on autopilot. Automate all the mundane tasks such as product research, product import repricing, inventory management, and even marketing. This way, you can free up a lot of time and even eliminate errors.
Second, consider getting a 3PL fulfillment company if you want to connect with your customer and build trust. Now that Temu ships orders with its trademark orange packaging, you might lose a repeat customer. The best way to circumvent this is dealing with a 3PL company that will repackage the order and deliver it to your customer so your customers will know that you are the seller and not Temu.
Temu Dropshipping Alternatives
While Temu dropshipping has great potential, you might be discouraged by the fact that the company doesn’t facilitate blind dropshipping, so chances are high you won’t have many repeat customers as they will head to Temu for their next purchase.
Your only workaround here is using a 3PL company, which might push the cart value, and this way, you risk losing customers.
So, what are some of the Temu alternatives you can shift your focus to?
Owned by Alibaba Group, AliExpress is by far the best dropshipping supplier. Instead of Temu, you can start dropshipping from AliExpress. The platform has millions of products and supplies, and the prices are fantastic.
It gets better.
You can ask AliExpress not to include the original invoice, marketing material, or anything that might show the customer that AliExpress has shipped the item. check out our exclusive AliExpress dropshipping guide to learn more about this business model.
That’s the end of this Temu dropshipping guide, and as you’ve seen, Temu can be the perfect supplier you need to start your dropshipping business. The platform has a wide range of products, fantastic prices, and a generous return policy. But the fact that it’s not a blind dropshipping supplier and doesn’t allow brand customization should make you think twice now that your customers are likely to go to Temu directly for their next purchase. But you can counter this using a 3PL provider. So, what are you waiting for?
Start dropshipping from Temu today, and remember to leverage tools such as Easync to streamline operations!
Frequently Asked Questions (FAQs)
1. Is dropshipping allowed on Temu?
You can dropship from Temu to Amazon, and other sales channels but there’s no special app for dropshippers. But there are plenty of dropshipping products at fantastic prices.
2. Can you use Temu for Shopify?
Yes. You can dropship from Temu to Shopify seamlessly and leverage the power of automation to the fullest.
3. Is Temu owned by China?
Temu is a subsidiary of Pinduoduo Inc., a Chinese online retailer. However, it has set up a base in Boston, United States, considering a large percentage of its customer base is from the US.