Temu burst onto the US retail scene in September 2022, winning over shoppers with ultra-low prices and aggressive ad campaigns. But while its initial growth was fueled by new customers, its long-term success is now driven by repeat buyers.

Though Temu isn’t attracting shoppers at the same pace it once was—the number of shoppers that made purchases on the platform dropped 25% between January and August 2024, according to Earnest Analytics—its core audience keeps coming back.

• 70% of Temu shoppers are repeat buyers, according to data from Numerator reported by Chain Store Age.
• Over a third (34%) of consumers reported buying something from Temu at least once a month, according to an April 2024 survey from Omnisend, as reported by Bloomberg.
• Repeat purchases are higher among younger consumers—41% of Gen Zers make at least one purchase on Temu every month.

And consumers aren’t just coming back—they’re spending more, according to Daniel McCarthy, co-founder of predictive analytics company Theta.

“When [Temu shoppers] make their first purchase, they’re spending somewhere [around] 40 bucks and on the repeat purchases they tend to spend a bit more,” he told Earnest Analytics. “These differences aren’t very big; it could be promotional discounts, or it could be that they’re kind of dipping their toe in the water before being comfortable making larger purchases.”

But Temu’s success isn’t just about retention—it’s also about competition. The platform is winning over shoppers from rivals like Shein and TikTok Shop.

• In January 2023, Temu captured just 12% of the spend of US Shein customers. Fast-forward to September 2024, and Temu’s share more than doubled to 31%, per Earnest Analytics.
• In addition, 30% of shoppers who made a purchase from TikTok Shop re-purchased that same product from Temu later on.
• There were 70.3 million unique digital visitors to Temu in October 2024, exceeding Shein’s 52.2 million, AliExpress’ 9.6 million, and Wish’s 3.5 million, according to data from Comscore.

The roadblock ahead: Thanks to its loyal customer base, Temu has sustained its success long after its debut. But it faces one major challenge ahead: tariffs.

• 29% of US consumers say that if prices go up on marketplaces like Temu, they would immediately stop purchasing from them or buy less, according to Omnisend.
• Temu’s US sales fell as much as 32% in the first five days of February, according to Bloomberg Second Measure data.
• This coincided with President Donald Trump's announcement that parcels under $800 from China would no longer be exempt from customs duties.
• Shein is facing the same issue, with sales falling 16% to 41% during the same period.

The bottom line: Temu’s ability to turn first-time shoppers into repeat customers has been key to its sustained momentum. But if prices go up, the real test will be whether those customers will stick around.

This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.