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It is learned that after the U.S. Congress’ hearing on the short video social media platform TikTok ended on March 23rd local time, the media generally believed that TikTok would face tremendous pressure in its operations in the United States. At the same time, domestic netizens also discussed this topic : TikTok’s future is now uncertain, which is actually a dangerous signal for Temu and SHEIN, which are also developing in the United States and are gaining momentum. And it turns out that netizens' considerations are not groundless. SHEIN may face the risk of being shut down in the US
On March 26, according to Titanium Media, China's fast fashion unicorn SHEIN is facing the risk of being closed in the United States. It is understood that the news quoted a report from the American media @PRNewswire on March 23rd local time . The report said that according to SHEIN's user policy, when a user creates an account, SHEIN will identify the user as a personal importer, and as long as the user's order on SHEIN is less than $800, the order will not trigger the requirement to report to the U.S. Customs and Border Protection. According to data previously disclosed by SHEIN, SHEIN has shipped billions of dollars worth of goods to the United States. Through the above policy, SHEIN avoids tariffs that all other legal businesses must pay. At the same time, the report also claimed that SHEIN's products use Xinjiang cotton, which violates the Uyghur Forced Labor Prevention Act (UFLPA) of the United States, making American consumers unknowingly "accomplices." To this end, a new alliance in Washington, DC, launched a campaign called "SHUT DOWN SHEIN" : calling for the closure of SHEIN on the grounds that SHEIN was suspected of "violating human rights and using import laws to evade billions of dollars in tariffs . " ▲ Picture from PR Newswire As soon as the news came out, it sparked heated discussions in the cross-border circle: "This is to prevent Xiyin's own website from becoming too big and having to rely on Amazon to survive. The Americans are too despicable." "Activate bandit mode, TEMU should be careful next time." "It's true that a big tree attracts the wind. That's what the US law stipulates. No tax is required for purchases below $800." "More thunderous than thunder." Many sellers believe that the reason why SHEIN was called to be closed by the American alliance is that although it is a platform manufactured in China, it is thriving in the United States. Given the United States' consistent love of monopoly, SHEIN cannot be tolerated. However, SHEIN quickly responded to the news, denying that it was at risk of being closed in the United States. On the morning of March 27, a SHEIN insider responded to @财联社APP that the company operates in accordance with relevant U.S. laws and regulations, denies the relevant false claims, and will resolutely defend the company's rights and interests. It is learned that SHEIN officials have previously denied the news that they may go public in the United States in the second half of this year. At that time, some sellers analyzed that Sino-US relations may become the biggest obstacle for SHEIN to go public in the United States. Some sellers also believe that the Reuters report that SHEIN will use a Singapore company as its de facto holding company is also a move taken by SHEIN to break away from the influence of Sino-US relations and go public in the United States. As of now, it is still uncertain whether SHEIN can successfully survive the above-mentioned crisis, and we will continue to pay attention to relevant news. It is worth noting that SHEIN is currently undergoing a critical period of business transformation. In pursuit of longer-term development, SHEIN has taken many actions recently. Among them, the most concerning for cross-border sellers is the news that the platform model may be launched in the United States. SHEIN platform model may be launched in the US Sellers have received invitations!
According to the latest report from MarketPlacePulse, after testing the platform model in Brazil and Mexico, SHEIN may open up third-party sellers in the United States. Considering the current market trend, SHEIN has not yet started to invite local American sellers, but regards Chinese sellers as the main recruitment target. At present, some senior sellers on Weibo have revealed that they have received invitations from SHEIN's official investment manager. ▲ The picture comes from Weibo @Amazon五爷
It is understood that third-party sellers who join SHEIN enjoy the following benefits:- No commission for the first three months, and 10% of sales for all categories thereafter;
- 0 traffic fee, enjoy pricing power;
- SHIEN will bear the return shipping costs in the first 3 months, and the seller will bear the return shipping costs thereafter.
In this regard, most sellers believe that SHEIN's move is a bold break from the inherent independent station self-operated model. With the participation of third-party sellers, SHEIN can not only expand sales categories and promote the diversification of the supply chain , but also help break the current audience limitations and bring in greater customer traffic and user stickiness . Some sellers also said that the joining of SHEIN may alleviate Amazon’s “arrogance” towards third-party sellers, and it is good news for cross-border sellers to add another platform to settle in. However, some sellers pointed out that SHEIN currently has no official warehouse, and third-party sellers need to adopt a self-delivery model . There is still a big gap in logistics and distribution with Amazon, and the road to building a platform is long. In addition, SHEIN's brand image, known for its low prices , may make it difficult to attract high-quality sellers when building a platform model, and thus difficult to attract consumers with high spending levels, ultimately facing the dilemma of hindered profit growth. Based on this, whether SHEIN can further conquer the US market through the platform model in the future is still full of unknowns. What is certain is that SHEIN has said that if the platform model goes well in Brazil and Mexico, the United States and more markets may follow quickly. What do you think of this? Welcome to discuss in the comments section~
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