PDD - I Shopped on Temu: 3 Reasons I'm Not Convinced Temu Is a Big Threat to Amazon
2024-06-29 11:22:00 ET
If there's one thing that can attract shoppers, it's the lure of low prices. Combine that with the endless scrolling and the "influencers" promoting items that you have on social media, and you end up with online shopping platform Temu. And there's always some sort of promotion on an item on Temu.com, which can give consumers an incentive to spend just a little bit more money once they're on the platform.
Some Amazon (NASDAQ: AMZN) investors are worried about Temu's growing popularity. While Amazon remains the dominant force in e-commerce, Temu's owner, PDD Holdings (NASDAQ: PDD) , also operates online retailer Pinduoduo and has deep pockets, which could potentially make Temu a big thorn in Amazon's growth prospects.
It sounds concerning, but after using Temu several times, here are three reasons why I'm not convinced it's a big problem for Amazon.
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I Shopped on Temu: 3 Reasons I'm Not Convinced Temu Is a Big Threat to Amazon