
Temu's minimum order for free shipping is a crucial factor to consider when shopping on the platform. It varies depending on the shipping location, with a minimum order requirement of $25 for most US states. However, this amount may be higher or lower for other countries.
For US customers, orders under $25 will incur a shipping fee, which is calculated based on the weight and dimensions of the items. This fee ranges from $5.99 to $7.99, depending on the shipping speed chosen.
If you're planning to shop on Temu, it's essential to factor in the minimum order requirement to avoid any unexpected shipping costs.
Understanding Temu's Minimum Order
Temu's minimum order value is a crucial factor in determining whether their free shipping policy is viable. To calculate this value, you need to consider the average order value, gross profit margin, and average shipping costs.
The average order value is the amount customers typically spend per transaction. For Temu, this is $45. To set a free shipping threshold, you should consider setting it slightly above this value, about 30% higher, which would be $60.
To determine if a minimum order value is fiscally viable, you can use the following formula:
1. Subtract the Average Order Value (AOV) from the proposed Minimum Cart Value (MCV).
2. Take that number and multiply it by your Gross Profit Margin (GPM).
3. Take that number and subtract your Average Shipping Costs (ASC).
Here's an example of how this formula works:
Using this formula, we can see that a minimum order value of $50 is not fiscally viable, while a minimum order value of $60 is viable.
Temu Shipping Policies
Temu's shipping policies have been a subject of interest among customers, with some reporting success in having the minimum order requirement waived. A user reported that they were able to get the minimum order removed by mentioning it to the chatbot, and then a button appeared to reduce or remove the limit.
However, not all customers have been successful in having the minimum order requirement waived. A user reported that the chatbot tried to connect them to a live agent, but the agent was able to set the minimum order to $0.00 without hassle. Another user reported that the chatbot transferred them to a live agent, but the agent refused to remove the limit.
It's worth noting that Temu's shipping policies may change over time, as one user reported that the minimum order requirement no longer worked and the chat agents refused to remove it.
Test the Tipping Point
To test the tipping point, consider offering free shipping incentives during short-term sales. This will help you understand when customers are willing to spend more to save on shipping.
You can start by dedicating a portion of the checkout screen to display items that customers can quickly add to reach the free shipping threshold. This will make it easier for them to see how much more they need to spend to qualify for free shipping.
Test the waters throughout the year with short-term sales that use free shipping incentives. This will give you valuable insights into customers' online buying habits.
If customers see value in free shipping promotions, they may be more likely to buy more items, leading to improved conversion rates and increased profits.
Here's a rough estimate of how some customers responded to free shipping incentives:
Note that customer responses may vary, and it's essential to continue testing and refining your strategies to optimize results.
Removing Minimum Spend Requirements
If you're struggling with the minimum spend requirement on Temu, there's a simple workaround. Add an extra item to your order to make it over the minimum amount, pay for the order, and then cancel the extra item for a refund.
The minimum spend threshold on Temu has recently increased to $45, but some users have successfully had the requirement waived after multiple attempts.
Persistence in the chat can yield different results, and connecting with a customer service agent may be the key to getting the minimum spend requirement removed.
You can try adding an extra item to your order to make it over the minimum amount, pay for the order, and then cancel the extra item for a refund.
Sources
- https://www.uspsdelivers.com/implementing-free-shipping-through-minimum-order-value/
- https://www.ozbargain.com.au/node/837481
- https://bargainfindernz.co.nz/blog/how-to-remove-minimum-spend-on-temu
- https://www.ozbargain.com.au/node/841488
- https://www.tomsguide.com/news/shopping-on-temu-heres-what-you-need-to-know-before-placing-your-first-order
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