Cebr conducted a price benchmarking analysis for Temu, to assess the cost advantages for UK consumers of buying goods on platforms utilising the direct distribution channel (DDC) mechanism. Our report estimated the monthly and annual savings available to a typical household of purchasing goods through the DDC, compared to indirect distribution routes utilising additional intermediaries. We did this by utilising up-to-date pricing data on comparable everyday products purchased by UK consumers on established ecommerce websites, mapped to economic data on the typical expenditure profile of a UK household. The project also included primary research with overseas suppliers of products ultimately sold in the UK, to understand the mechanisms by which the channel through which their products were sold ultimately impacted the price level faced by UK consumers.

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