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The Absurd Economics of Wish, AliExpress, and Temu

Save time and money when you ship with Rollo. Use code MODERNMBA1 to get $10 off your first shipment. https://www.rollo.com/modernmba/ Temu is everywhere, promising that you can shop like a billionaire buying $10 wireless speakers, $12 sneakers, $20 drones and other cheap gadgets, clothes, backed with the promise of free shipping, 90-day returns, 30-day price adjustments, and deliveries within 2 weeks. But Temu isn’t the first to sell generic, unbranded, mass-produced Chinese products online at radically low prices. Before Temu, there was AliExpress and Wish - who both went to market decades ago with the exact same value prop, unbelievably low prices, and wacky advertising. Wish was the earliest entrant into this space and the SF-based startup was once one of Silicon Valley’s darling unicorns. It all begs the question - how exactly do these companies stay alive selling $5-10 items online? In this episode, we’ll cover the business of selling cheap Chinese-made junk online through the rise and fall of Wish, the persistence of AliExpress, and the sudden emergence of Temu - and how all of this ties back to greed, growth and Silicon Valley. 🎬 Support Modern MBA: https://buymeacoffee.com/modernmba ☕️ Support Modern MBA on Patreon:   / modernmba   💬 Join Modern MBA on Reddit:   / modernmba   🌎 Follow Modern MBA on Facebook: https://www.facebook.com/profile.php?... 🕊 Follow Modern MBA on Twitter: https://x.com/modern_mba 0:00 The Dollar Store Platform 8:20 The Rise & Fall of Wish 16:32 Irresponsible Burn 30:50 Fool Me Three Times