Shein USA platform is online, and Anker is one of the first brands to settle in

Shein USA has launched with Anker being among the initial brands to establish a presence

According to reports, Shein platform is open to both US domestic and international sellers, and its business scope has expanded beyond fashion. Anker is one of the first brands to join the platform.

The launch of the platform model by Shein in the United States will cause considerable turmoil. Although it is much smaller in scale than Amazon or Walmart, relying on the C2M model to connect users and factories, and reducing intermediate circulation links, Shein’s share of the US e-commerce market continues to rise, and it has once squeezed into the top ten online retailers in the United States.

According to The Wall Street Journal, Shein’s sales in 2022 reached $30 billion, and it is expected that its global GMV (total transaction volume) will increase to $80 billion by 2025.

In addition to the wide-ranging social media marketing strategy, BusinessDialogue learned that Shein’s installation volume exceeded 229 million times in 2022, surpassing Amazon as the most downloaded app in the United States. Currently, Shein’s traffic sources in the United States are approximately 40% from searches, 37% from App direct traffic, 9% from social media (with Facebook accounting for about 50%), and 7% from display ads.

According to reports, Shein’s US platform is actively recruiting US domestic online and offline retailers, especially sellers with physical stores, who can provide faster logistics.

After the platform model is launched, Shein may not be able to compete with Amazon’s same-day or two-day delivery speed in logistics efficiency, but it may attract many top sellers on Amazon’s platform to join. Anker is one of the first brands to join the Shein platform, but some of Anker’s products sold on Shein are priced lower than on Amazon, and it is currently unclear whether this is Anker’s decision or a subsidy activity of the new Shein platform.

According to sellers who have received invitations to join, Shein’s third-party platform will be commission-free for the first three months, and then the sales rate for all categories will be 10%, lower than the cost level of Amazon. In addition, for the first three months, Shein will bear the cost of return shipping, and then sellers will be responsible for the cost of return shipping themselves. Sellers have the right to set prices and there are no traffic fees, etc.

According to the information released by Shein, third-party sellers can see real-time performance and sales of their products. They can also leverage SHEIN’s efficient supply chain integration and management capabilities, as well as consumer demand capture and traffic generation resources.

To support its third-party business, Shein is building a team in Los Angeles and hiring multiple positions to attract and support sellers. Shein plans to expand its supply chain by increasing local sellers, rather than just relying on its suppliers in China (while also investing in manufacturing in Brazil, Turkey, and other countries).

However, previously, Wish and AliExpress also tried similar strategies to diversify their product categories, but made little progress in attracting local sellers in the United States or Europe.

Editor✎ Ashley/BusinessDialogue

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