On May 4, Shein officially announced that it will gradually launch the platform model SHEIN Marketplace in the global market. It is learned that SHEIN Marketplace made its debut in Brazil last month. On May 6, Shein announced the official launch of the platform model in the United States.
So how is Shein performing in the US market?
It is learned that Shein's share of the US e-commerce market has continued to rise, and it once squeezed into the top ten online retailers in the United States. In 2022, Shein's sales reached 30 billion US dollars, and its global GMV (gross merchandise volume) is expected to grow to 80 billion US dollars by 2025. Coupled with a wide-ranging social media marketing strategy, Shein's installation volume exceeded 229 million times in 2022, surpassing Amazon to become the most downloaded APP in the United States.
With the dual support of outstanding sales and huge traffic, Shein's launch of the platform model in the United States will cause heated discussions across borders.
Shein's business model has always been based on designing and selling its own brands. The SHEIN Marketplace launched now will invite third-party merchants to sell Shein's own products while selling them. This means that third-party sellers will compete with Shein on the same platform. Anker becomes one of the first brands to join Shein It is understood that the Shein platform is open to both domestic and international sellers in the United States, especially sellers with physical stores, who can provide faster logistics timeliness. When browsing Shein's US site, it is found that in addition to clothing and shoes and bags, categories such as home furnishings, beauty, electronic products, jewelry, etc. are also prominently displayed at the front of the page . In the future, Shein's investment promotion for third-party sellers may revolve around these categories.
Under these categories, some products come from third-party brand sellers. Among them, it is worth noting that Anker, a star cross-border e-commerce brand, became one of the first brands to join the Shein platform.
According to the information displayed on the page, there are currently more than 200 Anker products displayed on the Shein US site , covering mobile power supplies, chargers, data cables, earphones, Bluetooth peripherals , etc.
As a top seller on the Amazon platform, Anker's current product pricing on Shein is the same as on Amazon . This shows that this is Anker's decision and it has not carried out any subsidy activities targeting the Shein US platform.
For cross-border sellers, what they are more concerned about is: How to enter Shein US Station? What is the order volume of those who have already entered?
Sellers who have settled in Shein: Orders are placed as soon as the product is put on the shelves, so good!
In fact, as early as around March, many cross-border merchants revealed that they had received investment invitations from official managers and would enjoy multiple benefits such as free commission and return shipping in the first three months, 0 traffic fees, and pricing power. In order to make it easier for sellers to understand, the information currently collected is organized as follows: In terms of commission, there is no commission for the first three months, and 10% of sales for all categories will be charged thereafter; In terms of pricing and traffic, sellers currently have pricing power and no traffic fees; In terms of logistics, sellers' products must be shipped from the United States. Currently, most sellers create multi-channel delivery orders through Amazon FBA warehouses, and some sellers ship through third-party overseas warehouses. The return shipping fee will be borne by SHEIN for the first three months. At the same time, Shein stated that after third-party sellers settle in, they can see the real-time performance and sales of the products, while relying on SHEIN's efficient supply chain integration and management capabilities, as well as consumer demand capture and traffic generation capabilities and other resources. In addition, many Shein sellers also made high-profile sharing: "Shein is really good. Orders were placed as soon as it was put on the shelves. I'm glad I bought it first!" "My products have a relatively high average order value, so I was worried that I wouldn't be able to sell them at first. But I didn't expect that even with a high average order value of $50, I could still get orders steadily. Shein's traffic is really encouraging." "The backend operation is convenient, and the goods are shipped from overseas warehouses, which means there is another order placement channel. In the future, we will focus on operating the Shein platform." Under the recommendation of existing sellers, "how to join Shein" has become the most concerned issue for most sellers. After Shein officially announced its third-party platform, it held a home furnishing investment promotion meeting in Yiwu on May 8. Many sellers speculated that there would be more investment promotion meetings in the future. However, many sellers were still confused about the entry threshold.
Regarding the entry threshold that sellers are most concerned about, we interviewed Shein officials and learned that in the early stage, it is mainly based on targeted invitations, and in the later stage, it will gradually open up to all. If sellers have the intention to actively enter, the annual GMV of a single store must reach 2-4 million dollars. Of course, sellers on the SHEIN platform must also comply with SHEIN's relevant market service agreements and policies, including the seller's code of conduct and policy terms to protect customer safety. In order to help more sellers who are interested in the Shein platform model to answer their questions, we have created a group chat [Shein Cross-border Platform Discussion Group]. You are welcome to scan the QR code below and reply [shein] to join the group discussion.
▲Scan the QR code and reply【 shein 】to join the group
In order to support its third-party business, Shein is also working hard. AMZ1 23 learned that Shein is not limited to attracting third-party sellers in China. It is setting up a team in Los Angeles and recruiting multiple positions to attract and support sellers, intending to expand its supply chain by adding local sellers. I believe that in the future, more local brands, merchants in various markets and global third-party sellers will join the SHEIN platform to better meet consumers' growing online consumption needs.
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