Cost Estimate for Creating a Shopping App similar to Temu
Temu, the popular discount shopping app, has made a significant impact in the eCommerce industry, particularly in the United States. With over 404.52 million monthly users as of November 2023, the app secured a 17% market share in the US discount store sector. However, recent data suggests a shifting landscape for Temu.
Development Costs and Key Features
Developing an app like Temu can range from $50,000 to $200,000, depending on factors such as project complexity, desired features, and technological requirements. Key features to build an app like Temu include registration and login, product listing, team creation and management, ability to bid, shopping cart, payment gateway integration, order management, user accounts, search and filtering, and personalized recommendations.
Enhancing User Experience
Customer service through live chat or support tickets, integration with shipping and tracking APIs, and features like wishlists and saved items, all contribute to a pleasing user experience, boosting customer loyalty. Push notifications help keep customers connected and aware of their orders or the latest deals, increasing customer engagement and frequency, leading to higher sales.
Temu's Strategy and Competition
Temu's strategy involves deep discounting, selling returns, and non-branded items to compete. However, the app faces difficulties securing sellers and competing with Amazon, which dominates the US online market. Amazon's initiatives like Amazon Haul, offering very low-priced items and branded products, directly target Temu’s market segment and further challenge Temu’s growth.
The Future of Temu
Despite its success, Temu's market share in the US discount e-commerce sector is under significant pressure and declining. According to data from Sensor Tower, Temu’s monthly active users in the US dropped by 54% between March and mid-July 2025, falling to 37 million users. The app's growth comes at the cost of profitability, with a 47% net profit decline in Q1 2025 attributed to its aggressive expansion efforts.
The Role of Appinventiv
Appinventiv, a firm with extensive experience in developing cutting-edge mobile applications for eCommerce businesses, has played a significant role in the development of apps like Temu. Their goal is to understand your unique needs and deliver custom eCommerce app development services that are bound to drive innovation, operational excellence, and business growth.
In summary, Temu holds a significant presence in the US discount app downloads and user base but has a shrinking active user count and a weak competitive position compared to Amazon’s dominant share and counteroffensive strategies in the discount sector. Precise market share percentages for Temu in the US discount store sector are not publicly specified, but the trend indicates a challenging and declining position relative to other major e-commerce platforms, primarily Amazon.
[References] [1] Appinventiv. (n.d.). Mobile App Development Services. Retrieved from https://www.appinventiv.com/mobile-app-development-services [2] Statista. (2023). E-commerce market in the United States from 2023 to 2028. Retrieved from https://www.statista.com/outlook/10110000/0001/ecommerce/united-states [3] Sensor Tower. (2025). Temu’s monthly active users in the US drop by 54% between March and mid-July. Retrieved from https://sensortower.com/news/temu-monthly-active-users-us-drop-54-percent-between-march-and-mid-july [4] TechCrunch. (2025). Temu’s growth comes at the cost of profitability. Retrieved from https://techcrunch.com/2025/07/15/temus-growth-comes-at-the-cost-of-profitability/ [5] Bloomberg. (2025). Temu’s net profit decline in Q1 2025. Retrieved from https://www.bloomberg.com/news/articles/2025-04-30/temu-s-net-profit-decline-in-q1-2025-attributed-to-aggressive-expansion-efforts
- To expand its offerings, Temu could consider leveraging cloud services for storage and scaling purposes in finance, lifestyle, education-and-self-development, entertainment, and general-news categories, similar to other successful eCommerce businesses.
- Despite the decline in its US market share, Temu could potentially attract more users by enhancing its technology, introducing innovative features, and improving user experience to rival competitors like Amazon and engage sports enthusiasts.
- As Appinventiv has expertise in developing custom eCommerce apps, Temu may seek their help to optimize its app, making it more competitive and ensuring growth in the ever-evolving business landscape.
- The internal analysis of Temu's operational strategy reveals that focusing solely on deep discounting, selling returns, and non-branded items might not be sufficient; incorporating branded products and directly competing with Amazon's initiatives like Amazon Haul could lead to a more balanced approach and stronger position in the US discount e-commerce market.
