First release in the US in May! SHEIN semi-hosted service launched

Since Temu launched the semi-hosting model at the beginning of this year, the platform's traffic has shifted significantly. Semi-hosting has quickly gained a large number of orders due to its advantages such as fast delivery and front-end labeling.

Taking this opportunity, following AliExpress and TEMU, SHEIN's "semi-hosting" also came and was launched in early May.

SHEIN semi-custodial launch

SHEIN's semi-hosted model was officially launched in early May, with the first station being the United States.

SHEIN semi-hosting adopts the same operating model as Temu. Sellers enter the platform to open stores and independently select products for listing. It requires that the selected products must have local inventory overseas and be able to be shipped locally (shipped by sellers to consumers) . It targets large sellers on Amazon and independent sites.

However, SHEIN semi-hosting is more flexible in some aspects. In terms of price, it is also submitted by the seller, and then the seller can participate in pricing and operation with the assistance of SHEIN , while enjoying the autonomy of product selection. Currently, SHEIN semi-hosting model has no commission, no monthly rent and no deposit, and is mainly aimed at US sites.

In addition, SHEIN semi-managed stores also set clear entry requirements:

In terms of payment settlement, SHEIN semi-custody adopts public US dollar account settlement and supports third-party payment service providers. The payment period is 7 days after successful delivery, and the overall payment time is about half a month.

As the world's largest fast fashion retailer, the joining of SHEIN means that China's major cross-border e-commerce platforms are gathering in the new battlefield of semi-hosting.

SHEIN is rising rapidly!

Recently, according to the latest data from the ECDB website cited by Statista, a global data and business intelligence platform, the following is shown:

SHEIN ranks as the third largest online fashion retailer in the United States , behind Amazon and Walmart, and ahead of traditional retail giants Macy's and Nike.

At the same time, SHEIN has become the only Chinese company among the top five online fashion retailers in the United States.

According to data from the ECDB website, Amazon and Walmart are the top two fashion retailers in the United States. Both retailers sell all kinds of goods online and in physical stores, with net fashion sales reaching US$12.3 billion and US$8.9 billion respectively in 2023. SHEIN, which ranks second, has surpassed Macy's, the fourth-ranked traditional US retailer, and Nike, which ranks fifth, by providing rich, diverse, cost-effective fashion products and high-quality and convenient services. The latter two companies' net fashion sales in 2023 were US$6.4 billion and US$4.5 billion respectively.

In addition, in the "Top 10 Fastest Growing Brands in the United States in 2023" released by Morning Consult, an authoritative American consulting firm, SHEIN was selected along with international leading brands such as ChatGPT, OpenAI, Facebook, and CocaCola, becoming the only Chinese brand on the list and the only fashion brand selected worldwide.

With SHEIN's continued expansion across all categories and multiple models, more and more different types of Chinese sellers and brands are expected to use the SHEIN platform to more conveniently achieve global development and brand expansion.

From full hosting to semi-hosting

It's evolution, but not the end.

To a certain extent, whether it is full hosting or semi-hosting, it is a phased product of the development of cross-border e-commerce platforms.

In 2024, the "Four Little Dragons" represented by Temu and AliExpress will turn their attention to "semi-custody":

AliExpress fully opened the "semi-hosted model" in January this year, giving the ownership of goods, pricing rights, and operating rights to merchants, and handing over logistics fulfillment services to the platform, anchoring POP merchants that have not joined the full-hosted model;

Temu launched its semi-hosted business on the US site in March this year, handing over the ownership of goods and logistics fulfillment to merchants, while the pricing and operating rights still belong to the platform. It is mainly aimed at mature sellers whose goods are located overseas to alleviate their slow logistics fulfillment.

SHEIN also started recruiting merchants in a semi-custodial model in early May. Like Temu, its first stop was the United States. However, unlike Temu's semi-custodial model where it controls pricing, SHEIN attracts merchants through negotiated pricing.

However, the semi-hosting model will obviously not be the end of the continued evolution of cross-border e-commerce platforms.

From last year's full hosting to this year's semi-hosting, amid the increasingly fierce battle in the cross-border e-commerce battlefield, various e-commerce platforms are going all out and chasing each other.

It is reported that Temu, TikTok Shop, Alibaba International Group and SHEIN have set themselves high transaction volume targets this year. Radical ones such as Temu are aiming to grow by more than 200% year-on-year to demonstrate their ambitions for overseas business.

But now the cross-border e-commerce industry has gone through its initial wild growth and entered a new stage.

A new round of war has just begun, and it is still unknown who will be the final winner, but it is worth looking forward to.