Temu Still 34% Cheaper Than Amazon Despite U.S. Tariffs

Earlier research showed that TEMU's low-price strategy offered consumers significant savings compared with Amazon, with average savings of 13.87 dollars per item and a price advantage of up to 40%. This advantage undoubtedly became a key factor in TEMU's rapid rise in the e-commerce market, posing a considerable challenge to established platforms such as e-commerce giant Amazon.

However, the recent U.S. cancellation of the "duty-free policy for packages worth 800 dollars" has introduced new uncertainties for cross-border e-commerce. This policy change has sparked widespread attention and discussion, including concerns that TEMU might raise prices as a result and lose its price advantage.

However, Omnisend's research findings offered a relatively optimistic answer. Although the 10% tariff did affect TEMU's price advantage to some extent, reducing it from 40% to 34%, TEMU remains highly competitive on price.

Additional U.S. Tariffs? TEMU Remains Price-Competitive, 34% Cheaper Than Amazon. Image source: Yien APP

TEMU's rapid rise has undoubtedly brought new vitality and competition to the e-commerce market. Meanwhile, established e-commerce giants such as Amazon have not stood idly by. Instead, they have actively responded to the challenge by launching low-price marketplaces and introducing a series of policies to reduce or waive commissions for certain categories, aiming to consolidate their market positions.

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