What impact does consistently decreasing a product's listed price have on Temu's search ranking algorithm?

Consistently decreasing a product's listed price on Temu can negatively impact its search ranking algorithm in several ways. Temu's algorithm is designed to promote products that offer value and stability, and frequent price drops can signal to the algorithm that the initial price was inflated or that the product is not selling well at its original price. This can lead to a decrease in visibility and organic ranking. Furthermore, Temu's algorithm considers sales velocity, which is the rate at which a product is selling. If a product requires constant price reductions to maintain sales, it indicates a lack of organic demand at the original price point. This can lower the product's overall score in the algorithm. Finally, frequent price changes can disrupt the algorithm's ability to accurately assess the product's value proposition relative to its competitors, leading to a less favorable placement in search results. Continually dropping prices can also erode customer trust and perceived value. For example, if a user frequently sees a product's price dropping, they might postpone purchasing it, expecting further reductions, thus hurting sales velocity and ranking.