If Temu is trying to maximize their profits, they're not doing a very good job of it.
But yes, I agree with you that Temu is bad, and not just for their suppliers/manufacturers. They're also bad for the environment as they sell a lot of junk that doesn't last.
The same goes for Shein.
Have you ever wondered how everything on Temu can be so cheap? The answer lies in a U.S. Customs loophole, low labor costs, and knockoff products.
www.zdnet.com
According to Wired, Temu loses about $30 per order because the company is trying to dominate the U.S. market by offering lower-than-low prices. Temu loses between $588 and $954 million a year because of its cost-cutting practices, according to finance company China Merchants Securities.
Additionally, Temu pressures its manufacturers to lower their prices even further to appease discount-seeking customers, leaving those manufacturers with little to no profit in return. Wired reported that Temu bears most of the company's international shipping costs, but relies on American consumers to frequently order from Temu to make up for money lost.