Temu helps UK local businesses boom, sparking a wave of community success
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Us Brits love a bargain, so it's no surprise that when direct-from-factory platform Temu landed on UK soil two years ago, shoppers flocked to it in their droves.
With prices as low as £1.88 and an enormous range of items, including quite literally everything from tech accessories to trendy homeware, Temu quickly became the destination for budget-savvy Brits looking to spend less.
What's really surprising about Temu's takeover though, is the unexpected boom it's sparked for small British businesses signed up to the site.
One business, Leeds-based retailer Spot On-Line (SOL) known for its affordable home and craft supplies, saw daily sales surge from £200 to a whopping £1,500 in just four weeks after joining the e-commerce platform. That's a jaw-dropping increase of 650%!
In fact, the company brought in £72,000 in gross revenue during its first full month on Temu, enough for the team to invest in a brand new distribution centre to keep up with the surge in demand.
At a time when many small businesses are feeling the pressure from high inflation and cautious consumer spending post-Brexit and Covid, it's a real boost for the local area too.
Marketplace Director at SOL, Spencer Saunders, said: '[It's] the strongest start we've had on any channel,' adding that it was great to see 'net sales take off and growth build so quickly.'
The second SOL site will focus entirely on fulfilling online orders through Temu, which is expected to create new jobs in logistics and operations, and also offer more work for other businesses in the local supply chain.
Known for its huge selection and ultra-low prices, Temu has quickly become one of the most downloaded apps in the UK, and it's making big waves in the world of online shopping.
A report by the Centre for Economics and Business Research says UK households could save up to £3,000 a year by shopping through platforms like Temu that cut out the middleman.
In South London, a salsa group danced at a local festival with matching outfits and coordinated moves…without spending a fortune.
They struggled with finding costumes that suited different body types within a budget. Then they found Temu.
'We didn't want the team to spend too much on their outfits for performances, but we still needed to look cohesive,' said Anh Vo, founder of the SASalsa dance group. 'I'm so glad we found something inexpensive that tied the whole routine together.'
They're among millions across the UK turning to Temu for affordable everyday items. A recent Ipsos survey found shoppers in six countries (including the UK) saved an average of 24%, with over 70% saying they'd recommend it to others.
'Price remains a key purchasing driver, especially during tough economic times,' commented Dr.Georg Wittmann, Managing Director of ibi research.
Whether you're a local seller or a savvy shopper, it's pretty clear that Temu is a game-changer for both businesses and bargain hunters.
With its unbeatable prices and wide range of products, it's not just revolutionising how we shop, but also helping local companies thrive in an increasingly challenging retail environment.
Designated a Very Large Online Platform (VLOP) under the Digital Services Act in 2024, Temu is now subject to the EU's most stringent risk oversight rules.
Its compliance system includes vetting all sellers, monitoring listings through technology and human review, and removing non-compliant products through a responsive takedown process. Temu also partners with top testing agencies like TÜV Rheinland and Eurofins to ensure product safety.
The platform uses automated tools and a multilingual team to detect and remove intellectual property rights violations and maintains an online portal for brands to report infringements directly. Its app is certified under the MASA cybersecurity framework by DEKRA, the respected Germany testing agency.
Temu's impact on the e-commerce industry has been widely recognized. It was named 'eCommerce of the Year' at Spain's eAwards 2025 and ranked among the top 10 platforms at the Ecommerce Italia Awards. In the U.S., USA TODAY included Temu in its 'America's Best Customer Service 2025' list.
In Europe, the platform is winning over users. Ipsos found that 77% believe Temu delivers strong value, nearly 70% would recommend it to others, and 80% expect to maintain or increase their spending in 2025.
The platform is also encouraging entrepreneurship. In the UK alone, 14% of local buyers say Temu has helped them start or grow a business. Many of these new ventures have already resulted in job creation and direct economic benefits to their communities.
And, as the platform continues to grow, it looks like Temu will play an even bigger role in reshaping the future of British shopping.
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