(Bloomberg) — Temu, locked in fierce competition with Amazon.com Inc., is targeting one of the e-commerce giant’s most popular product lines: Fire TV streaming devices.
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Temu sells an Alexa-enabled remote compatible with Amazon’s Fire TV Stick for just $4. A similar generic version costs about $10 on Amazon.com, while the official Fire TV replacement costs about $25.
Since its emergence in 2022, Temu has challenged Amazon’s fast delivery guarantee by offering deep discounts to shoppers willing to wait about a week to receive their orders.
Temu’s site says counterfeit Fire TV remotes are selling well, giving it a “Best Selling” badge for what it calls a “replacement Alexa voice remote” that is compatible with Fire TV streaming devices. .
Temu shoppers have purchased over 75,000 units of the product, which has received a 4.6-star rating from thousands of reviews. Many reviewers say this replacement is exactly the same remote control that came with their Amazon streaming device. According to the website, the devices are provided by a China-based company called Cilcone.
“I was skeptical if this would work, but given the cost I was happy to give it a try,” says a review dated Aug. 16. “I just put in the batteries, followed the instructions, and was able to control my Fire Cube and TV in less than 30 seconds.”
It’s unclear whether Temu plans to include other Fire TV-related gadgets.
“The products are sold by our third-party independent distributors,” a Temu spokesperson said in a statement. “Similar products are widely available on various online marketplaces.”
An Amazon spokesperson said the company is investigating the situation.
Temu’s parent company, PDD Holdings, surprised investors in August by warning that sales growth would slow as it battles rivals chasing China’s budget-conscious consumers. Domestic challenges have made PDD more dependent on overseas markets such as the US, and Temu has launched its own delivery business and is actively recruiting Amazon sellers.
Amazon makes up about 35% of streaming media devices used in the U.S., second only to Roku, according to Addison, Texas-based market research firm Parks Associates. Amazon launched its Fire TV series of media players a decade ago, and it became the company’s best-selling product. The company’s remote controls include a button that directs viewers to Amazon’s video streaming service, which also helps Amazon grow its business.
Amazon has long been criticized for harming its brand partners by creating generic versions of its products and lowering prices. The Seattle-based company has launched its own line of batteries, clothing, bags, household items and more. Amazon prioritizes its own products over those sold by competitors in search results, violating antitrust laws, the Federal Trade Commission alleged in a lawsuit against the company last year.
The $4 remote could similarly hurt Amazon’s Fire TV business, especially if Chinese factories start mass producing other general-purpose accessories. Rob Volpe, a consumer behavior expert in San Francisco, said some shoppers will bet on the Temu remote to save even a few dollars.
“Historically, a brand’s distribution channel has been one of the key indicators of something’s premium nature or value to consumers,” he said. “Seeing Amazon products listed on Temu looks a little weird and out of place, but I don’t think it hurts the brand.”
(Updates with comment from Temu in 7th paragraph.)
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