Temu UK Review: Features, Business Model, and How to Build a Similar App

Temu UK has taken over Europe's e-commerce market with jaw-droppingly low prices, direct-from-China shipping, and viral group deals. But how does it work, and why are millions in the UK choosing Temu over giants like Amazon and Shein?

In this guide, we will break down everything you need to know about the Temu UK app, including its business model, core features, and what makes it so addictive for bargain hunters. You will also learn how to develop a shopping app like Temu from scratch, what tech stack you will need, and what it might cost in 2025.

To help you out with all your doubts and questions regarding e-commerce app development like Temu, we will keep everything simple and easy to understand so you get a better idea of what to do next. But before we start this blog, let’s first see what the UK’s e-commerce industry statistics say… 

Key Market Takeaways on the UK’s E-commerce Landscape

• In terms of monthly gross merchandise volume, Temu reached a milestone of $1 billion in June 2023. (Source: Analyzify)
• As of 2024, Temu boasted a user base of over 15 million active users in the United Kingdom alone. (Source: Global Wireless Solutions)
• The number of active e-commerce users in the UK was around 60 million and is expected to increase to 62.1 million by 2025. (Source: Forbes)
• 26.5% of the retail sales in the UK were made online in 2022, which is expected to increase to 38.1%. (Source: Forbes)
• The e-commerce market in the UK was estimated to be worth around $280.55 billion in 2024 and is expected to expand further to $750.80 billion by 2029 at a CAGR of 21.76%. (Source: Mordor Intelligence) 

The statistics above are enough to make you believe that your app idea can be the next big thing in the UK’s e-commerce app industry. Before we move forward to understand the process of shopping app development, let’s first take a look at the detailed overview of the Temu UK app. 

What Is Temu UK & Why Is It Trending?

Temu UK is an online shopping app operating exclusively in the UK. The platform sells a wide array of products, which mainly include clothing, electronics, car accessories, kitchen appliances, outdoor furniture, baby products, power tools, etc. Temu UK operates under its parent company, Temu online marketplace, which is owned by a China-based company, PDD Holdings.

Temu was first launched in the US in 2022; it expanded its reach to countries such as the UK, the Netherlands, Spain, Australia, New Zealand, France, Germany, Italy, and Latin America. After being launched in 2023, Temu UK tops the charts in App Stores and boasts 19 million downloads and over 15.6 million monthly users. 

The app is designed to keep users engaged, constantly offering new deals, time-limited offers, and rewards for sharing with friends. With millions of downloads in the UK alone, Temu has quickly become a top alternative to Amazon and Shein for budget-conscious shoppers.

Understanding the Temu UK Business Model

Before you invest in developing an app like Temu, it’s important to understand the platform’s business model. So, here’s how Temu works: 

Temu offers an app that connects users with a wide array of products. The platform partners with China-based suppliers and manufacturers through Pinduoduo's supply chain. Basically, Temu sources its products directly from China and lists them on its website and app, and fulfills deliveries through its fulfillment centres. 

The platform’s wide popularity is due to low prices, flash sales, and discount coupons. The platform also offers a group buying option, where the price of the product drops as more users join to buy it, leading to more sales. Temu UK focuses on the direct-to-consumer (D2C) market.

However, the company continues to face challenges and criticism regarding the quality and safety of its products and the environmental impact of disposable goods and fast fashion. 

How Does Temu UK Make Money?

Temu UK generates revenue in three major ways: Sales commissions, transaction fees, and advertising. These monetization models help Temu sell products at low prices while still making a good profit. Wondering how?

Well, the platform charges a seller fee for listing products and a small percentage of the sale price for every transaction. At the same time, advertisers also pay Temu UK to feature their ads and products on the platform.  

So, now that you understand Temu’s business and revenue models, let’s move forward and discuss all the essential features your shopping app must have to compete with Temu. 

Features Your Temu-Like App Should Have

The features and functionalities of a shopping app are what lead it to success. If it lacks the basic one, there’s no way it will ever survive in the market. So, if you’re making a Temu alternative or even a better one, here are the core features you must incorporate in your e-commerce app. 

1. User Onboarding

To start using any app, users need to register and log in. The process includes creating an account, setting up their profile, entering their details, and selecting payment methods. A smooth onboarding process is essential to make a positive first impression on users.

2. Product Listing

In eCommerce apps, it's important to list products with detailed descriptions and high-quality images. A messy product listing can frustrate customers and negatively impact their experience, causing them to leave the app. 

Key features for product listing include:

• Product thumbnails
• Detailed product descriptions
• Filter and sorting options
• Attractive and responsive design
• Infinite scroll or pagination
• Clear Call-to-Action (CTA) buttons
• Easy navigation

These elements help improve the customer experience and make it easier for them to make decisions.

3. Shopping Cart

The shopping cart feature makes it easy for users to select and manage the items they want to buy. It saves them time and effort by not having to search for products repeatedly. 

Users can quickly add or remove items from the cart and proceed to checkout. Having everything in one place encourages more purchases, which increases sales. It also makes the checkout process smoother and more efficient.

4. Payment Gateway Integration

A seamless and secure payment gateway is essential for a shopping app. This feature lets users make payments directly within the app, ensuring a positive experience. For example, the Temu app integrates with PayPal, Braintree, and Stripe, offering different features and fees.

5. Order Management

This feature involves the entire process of customers placing orders and receiving them at their homes. It includes several steps:

• Customer order
• Managing inventory
• Fulfilling the order
• Packaging
• Shipping
• Tracking
• Follow-up

This feature benefits both businesses and customers. Businesses can efficiently manage their stock and ensure timely delivery of orders. On the other hand, customers can track their orders and receive them quickly. 

Incorporating this feature helps complete orders, increase customer satisfaction, and build a good brand reputation.

6. Personalized Recommendation

Businesses can offer personalized recommendations by collecting user data, preferences, and behavior. This enhances customer engagement and boosts sales. Additionally, it helps companies increase conversions, generate profits, and build stronger customer relationships.

7. Push Notifications

Notifications like "Your Order is Dispatched" and "Your Order is Out for Delivery" help customers track their orders. Adding notification features keeps customers updated on their orders and new sales. Push notifications enhance customer engagement, increase traffic, drive conversions, and build brand loyalty.

8. Analytics and Reporting

Analytics and reporting tools help sellers make smart stock, inventory, and restocking decisions. These features help businesses grow by following the right strategies and trends. They also provide insights into target markets, support marketing campaigns, and reduce operational risks.

9. Customer Service

Keeping customers happy is crucial for any business. Many businesses fail because they don't prioritize customer service. Integrate features like live chat, support tickets, email support, FAQs, and social media channels to satisfy your customers.

10. Wishlists and Saved Items

Let users create and manage wishlists for items they plan to buy later. Add sharing options so users can share gift ideas with friends and family. Notify users when wishlist items go on sale or are back in stock to boost conversions.

Required Tech Stack to Build an App like Temu UK

It is important to keep up with the technology, especially when developing an e-commerce shopping app. So, before we move forward with the process, here’s a table highlighting the required tech stack for building an online shopping app like Temu UK:

Key Steps to Build a Temu-like App in the UK

Here’s the main part of this guide - the app development process itself. The steps mentioned below will help you understand the mobile app development lifecycle, so you know what to do next!

Step 1: Planning & Market Research

Start with thorough planning and detailed market research. Clearly define your project's purpose and goals. Conduct extensive research to understand your target audience and competitors. 

Identify the different parts of your app that will help you reach the right users. It's important to pinpoint key features and functions based on market demand and user needs.

Step 2: Brainstorm Key Components

When creating your online shopping app like Temu UK, keep these key elements in mind:

• Domain Name: This is the web address for your store. Pick a short, unique name that matches your brand or products.
• Shopping Cart: This tool lets customers add items, manage their choices, and check out. Look into different options to find the best one for your app.
• Payment Processor: Select a payment gateway to handle transactions. Explore various providers to find one that fits your needs; PayPal is a popular choice for small businesses.

Step 3: UI/UX Design

Working on the UI/UX end of your shopping app is important. Focus on a unique and attractive design for your shopping app. It should be easy for users to navigate through the app. Here are some tips to keep in mind when designing an online shopping app:

• Select a theme that matches your brand's visual identity.
• Make sure users can move around the app easily and clearly.
• Use good-quality images to showcase your products better.
• Include reviews or ratings to build trust and credibility.
• Utilize white space to give a clean and modern look.

A user-friendly, appealing, and accessible UI/UX design will enhance user experience and engagement.

Step 4: Selecting the Right Tech Stack

Selecting the right technology stack is a critical step in developing eCommerce software. Choose technologies and frameworks based on your app's scalability, performance, and compatibility needs. 

• For front-end development, consider options like React Native or Flutter. 
• For backend development, you might use Node.js or Django. MongoDB and PostgreSQL are good choices for database management.

Step 5: Development Process

In this step, the eCommerce mobile app builder combines all the features and functionalities, working on the front-end and back-end code. The development time can vary depending on the app's complexity, features, and design.

Note: If you're on a tight budget, you can start with a Minimum Viable Product (MVP) to create a basic version of your shopping app. After testing your app in the market and understanding trends, audience, and market needs, you can develop a full-featured app. This approach can also help you secure funding from investors and establish a strong market presence.

Step 6: Testing & Quality Assurance

After developing your shopping app, the next step is to test it thoroughly. This helps find and fix any bugs, errors, or usability problems.

 Perform different types of tests, like functional, usability, compatibility, and security tests, to make sure the app is of high quality. Use feedback to make improvements before moving on to the next step.

Step 7: Deployment

Once everything is ready, launch your shopping app on the Play Store or App Store. Before making it available to users, ensure that your app follows all legal regulations.

How Much Does It Cost to Build an App Like Temu?

The estimated cost of developing a shopping app like Temu UK ranges between £25,000 to £50,000. However, the exact cost depends on various factors, such as features & functionality, design, tech stack, etc. Additionally, if you want more advanced features and functionalities, the cost might go up to £90,000 or above. 

Conclusion

Temu UK has changed how budget shopping works in the UK, and its viral success shows that shoppers are hungry for platforms that combine low prices, fun experiences, and fast deals. If you are thinking about launching a similar app in the UK market, now is the perfect time to act.

With the right planning, technology, and user-first approach, your app can offer something even better: faster delivery, higher quality products, and features that truly put the customer first.

Ready to turn your idea into a working app? Contact Mtoag Technologies today and let’s build something game-changing together.

FAQs

Is Temu UK Legit?

Temu UK is a legitimate online marketplace, but it has mixed reviews. While many users appreciate the low prices and variety, some have reported issues with product quality and customer service.

Where to Find a Temu UK Coupon Code?

You can find Temu UK coupon codes on various discount websites like VoucherCodes and HotUKDeals. These platforms often offer exclusive discounts and promotional codes.

Who Owns Temu UK?

Temu UK is owned by PDD Holdings, a multinational commerce group founded by Chinese billionaire Colin Huang. It is the sister site of the Chinese e-commerce platform Pinduoduo.

When was Temu Launched in the UK?

Temu was launched in the UK in April 2023. Since then, it has quickly gained popularity among UK shoppers.

How Many People in the UK Use Temu?

As of early 2024, Temu has around 15.6 million monthly users in the UK.

Is Temu Safe to Buy from the UK?

Temu is generally safe to buy from, offering secure payment methods and a purchase protection program. However, there have been concerns about data privacy and product quality.

Why is Temu So Cheap?

Temu keeps prices low by sourcing products directly from manufacturers in China, eliminating middlemen. This direct-to-consumer approach, along with low manufacturing costs, allows Temu to offer highly competitive prices.