How Does Temu Make Its Money? Unveiling the E-commerce Powerhouse’s Revenue Tactics

Ever wonder how some online marketplaces seem to offer unbeatable deals on everything under the sun? You’re not alone! A burning question that often pops up about one such marketplace, Temu, is: How does it make its money?

Let’s dive into the world of Temu and understand the secrets behind its financial mechanics.

The Short Answer: Transaction Fees, Commissions, and Advertising

At its core, Temu generates revenue through a trio of major streams. First up, transaction fees. Every time you snag a deal on Temu, a small slice of that transaction contributes to their coffers. But that’s just the beginning.

Next, commissions on sales play a pivotal role. Manufacturers or sellers fork over a commission to Temu for the privilege of accessing its vast customer base. And don’t forget about advertising! Temu rakes in cash by offering prime real estate on its app and website for brands eager to catch your eye.

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