Consumers are being forced to reconsider spending on non-essential items due to rising prices of everything, from toilet paper to cereal.

Rae, a single mother of two, is forced to stop buying small luxuries such as a dress, because gas and utility costs are taking a lot out of her budget. Attracted to the wide range of dresses on Temu's website, she began shopping there. Many of them are under $10.

Rae said that shopping on Temu helped her save money on household expenses. However, she didn't want her coworkers and neighbors to find out about her financial situation.

Temu was founded in September. It is a sister company to one of the biggest e-commerce platforms under the Nasdaq listed company PDD (Nasdaq:PDD). When Temu's website launched on September 1, it received a lot of media attention.

According to Temu's website, "No matter what occasion, you can always depend on Temu for just the right items to brighten your lives and help you live how you want," which also featured an orange logo and the slogan "Team up, price down." It aims to democratize the shopping experiences globally, with the first launch in the U.S..

Temu's website lists products in multiple categories, including clothing and household items. Casual browsing revealed listings for a girl's patterned dress at $3.95, a Halloween-themed necklace at $0.49, and a pair of women's running sneakers for $4.99.

According to the company, the e-commerce site is able to offer low prices as it shares the same vast network of global suppliers as PDD, which works with more than 11 million merchants and manufacturers around the world. Temu saves money on shipping and storage by shipping directly from the merchant to the consumer. This allows the company to pass on its cost savings to buyers.

It is offering a limited time promotion of free shipping on all items purchased on its website temu.com.

Temu chose this moment to enter the market with an affordable, value-for-money proposition.

Inflation reached a 4-decade high in June, and continues to rise due to rising gas and food prices. According to a Gallup poll, most Americans believe inflation is causing financial stress.

Compared to 49% in January, 56 percent of Americans stated that rising prices cause hardships for their families. This was more prevalent in middle-class households than in November, when 46% of respondents reported experiencing financial hardship due to rising prices. The problem is not limited to upper-income households. 40% of high-earners expressed concern about inflation in November, compared with 28% in November.

Temu may be able to find inspiration with the US household in a belt-tightening mode. 

A gold rhinestone butterfly buckle belt belt at $1.43, anyone?