Pinduoduo-linked Cross-Border E-Commerce Platform Temu Goes Live

A new e-commerce website and mobile app that bears the same registered address as Pinduoduo went live on September 1, weeks after speculation that the Chinese agriculture-focused technology company will launch a cross-border service.

The site and app, called Temu, offered products in multiple categories, including jewellery and accessories, women’s clothing, kids’ fashion, home and garden, pet supplies, beauty and health, shoes and bags, and sports and outdoors.

Buyers will receive 20% off their first order, with free returns within 90 days of purchase, according to the site. Temu also offered free shipping for purchases over $49 and the estimated delivery time was about two weeks.

Temu’s registration details bore the same address as Shanghai-based Pinduoduo, according to local reports. On August 17, LatePost reported that Pinduoduo was preparing to launch a cross-border e-commerce app, to be released initially for the U.S. market in mid-September. The product range for the new cross-border service will feature value-for-money items for which Pinduoduo, whose corporate slogan is “More Savings, More Fun,” has become known for.

A check of the Temu site showed a wide range of products, including a pair of Halloween pumpkin candy earrings for $0.57, a floral V-neck dress for $6 and a pair of lace-up running shoes for $10.34.

Pinduoduo will be responsible for non-quality problems in the after-sales process but will impose a five-times penalty on merchants for quality issues, according to local reports. Temu is still at the stage of updating its product list and many sellers are waiting for their applications to be reviewed, the reports said.

Pinduoduo’s reported US expansion follows moves by other Chinese e-commerce companies to internationalize their business. Alibaba’s Lazada Group, based in Southeast Asia, is preparing to make its entry into Europe, Bloomberg reported. JD.com’s logistics arm is set to launch its first automated warehouse in the US. Shein, a Chinese fast-fashion company, recently surpassed Amazon as the most downloaded shopping app in the US, according to analysis by Sensor Tower.

On August 29, Pinduoduo Chairman and CEO Chen Lei said the company was looking at overseas expansion but did not confirm the US as the destination market.

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“The overseas business is one of the opportunities we see…we see many peers in the industry achieving good results, so we believe it’s a direction worth trying out,” Chen said during a conference call after the company’s second-quarter financial results.

He also said that Pinduoduo “will not just simply repeat what others have done” and will “start from the needs of consumers and strive to create our own unique value.”

Chen added that he expected challenges and “constant trials and experimentation” along the way, but that the experience gained would be “very valuable” to the company and its young team.