Marketing as Your Only Value Skew (Somewhat Scammy)...

[MJ DeMarco]

Saw some company advertising this Neck Massager on Instagram. The prices are downright funny for the unsuspecting. The markup they want is insane.

When I saw it, I knew someone was just adding MARKETING as a skew to an existing product.

Sure enough...

Found the same products on Temu...

Step 1: Order 5000

Step 2: Create slick marketing (featuring BUFF models to grab attention) and slick packaging to take advantage of those who don't know about Temu.

Step 3: Sell for 400%-600% markup

Step 4: Pick color of Lambo (or Chevy)

 

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[GPM]

I have never even heard of Temu, but it looks like a better put together version of aliexpress.

Ever order from there? I am constantly buying stuff from aliexpress. I just got a pair of biking shorts that are on par with a pair my brother got from a store for.... $120!!!!! I paid $25 all in.

 

[MJ DeMarco]

Ever order from there?

Yes -- but the quality is a crap shoot. Some things (like hornet traps and yard supplies) were great, but other things can be poor quality. They have lots of fun gadgets.

 

[GatsbyMag]

Would you consider this a fastlane business or a quick money grab?

I'm assuming that the market is probably responding positively to this product, given that they are investing in IG ads. However if there's no branding or opportunity for recurring purchase due to poor quality of the product, then it seems that it's likely just a quick way to attract value tokens?

 

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[MJ DeMarco]

Would you consider this a fastlane business or a quick money grab?

I'm assuming that the market is probably responding positively to this product, given that they are investing in IG ads. However if there's no branding or opportunity for recurring purchase due to poor quality of the product, then it seems that it's likely just a quick way to attract value tokens?

Quick money grab, but some great experience in marketing.

Pretty much half the shit I see on Amazon is marketing arbitrage direct from Temu, all with 300-500% markups.

 

[James Klymus]

Do you have the link to the company’s site? I would like to see what their landing pages look like

 

[Mikkel]

Aside from myself being opposed to TEMU and would never give out my personal information to their company(CCP). I could see the use of TEMU as a good market analysis tool. From my understanding, they are like fast fashion, but for products. Sure, they steal intellectual property from thousands of people and undercut hard-working entrepreneurs every day, but they are able to test the market quickly by getting extremely low MOQs from manufacturing companies over in China. Their model is not sustainable, but in the short term, you can see what is selling and what is not. Identify trends and then look to source products similar to or the exact same as TEMU.

Plus, if you can find products that people are willing to buy for like $2. People will realize the product they bought is garbage, since most of the products from TEMU are just that, and may look for better alternatives. You can source better quality products with a nice markup. If it sells on TEMU, then a good portion of your market validation has already been tested.

The only problem with this is that there is obviously a cost of goods difference, but you would at least know the product is desired which is a decent part of the battle.

 

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[MJ DeMarco]

Aside from myself being opposed to TEMU and would never give out my personal information to their company(CCP). I could see the use of TEMU as a good market analysis tool. From my understanding, they are like fast fashion, but for products. Sure, they steal intellectual property from thousands of people and undercut hard-working entrepreneurs every day, but they are able to test the market quickly by getting extremely low MOQs from manufacturing companies over in China. Their model is not sustainable, but in the short term, you can see what is selling and what is not. Identify trends and then look to source products similar to or the exact same as TEMU.

Plus, if you can find products that people are willing to buy for like $2. People will realize the product they bought is garbage, since most of the products from TEMU are just that, and may look for better alternatives. You can source better quality products with a nice markup. If it sells on TEMU, then a good portion of your market validation has already been tested.

The only problem with this is that there is obviously a cost of goods difference, but you would at least know the product is desired which is a decent part of the battle.

That's a great point, Temu is definitely great for market research, validation, and demand verification.

 

[Aidan04]

That's a great point, Temu is definitely great for market research, validation, and demand verification.

Find products that had a high purchase rate on Temu (with awful ratings), and improve that product by adding a lot of value skews and refinement.

 

[Kung Fu Steve]

If you get caught in the retargeting ads, there are dozens of companies that sell that neck stretcher (the little blue thing)... and they're all just trying to undercut each other -- it's pretty funny... I will say though this thing is a godsend. I'll give every single one of those lame sites a testimonial.

... maybe I'll order the other one, too

 

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[Mikkel]

One thing to point out. In a world were China will rip IP from people and undercut you like crazy, if you are trying to create your own product, find barriers that make it more difficult to rip off.

One of those could be to create products that are regulated. If you're going to spend your hard earned money and a bunch of your time creating products, going through extra hurdles, like regulations, might just protect your invention in the end. Companies that are trying to make a quick buck are not going to waste time with regulators.

Granted, if you get your product through regulators, there will still be competitors that are larger companies that may try and copy your product and spend their money to get regulated too.