According to foreign media reports, in the United States, thousands of Amazon sellers “abandoned” Amazon and joined Shein’s platform, and Shein seems to be actively recruiting Amazon merchants.
Shein launched an e-commerce platform in May. Originally, it was a fast fashion retailer based on the consumer-to-manufacturer (C2M) model. Shein is developing from a retailer featuring fast fashion, low price and slow delivery to a mixture of retailers and e-commerce platforms covering a wide range of categories. In order to achieve this goal, it is widely attracting local and international sellers who have physical stores in the United States, including those who use Amazon Fulfillment Service (FBA).
Peter Pernot-Day, strategic director of Shein, said that the market is part of Shein’s localization strategy. He said: “The last part of this strategy is to find suppliers who make Shein garments and third-party sellers who are interested in cooperating with us and reaching our customers in these regions.”
Shein has added local sellers, such as Juvo Plus, which is one of the largest American sellers on Amazon. But most of Shein’s sellers are from China, although many of them are traded in American warehouses. Shein has not added any direct selling (DTC) or established a brand. However, it has a reseller, which has brought some well-known brands to it, and claims to purchase goods from “fashionable department stores, brand boutiques and famous buyers’ shops all over the world”.
Shein is trying to “dig the corner of Amazon”. According to reports, Shein is sending information to Amazon sellers, such as “Seeing that your brand has been so successful on Amazon, I will contact you today to bring you the opportunity to introduce your brand to Shein.” At present, Shein is an invitation-only market, and there is no direct way to start selling. To join Shein, the seller must have sold $2 million in Amazon last year. For eligible sellers, Shein offers free advertising and commission-free discount for the first three months.
According to reports, it is expected that in the short term, Shein will focus on attracting Amazon sellers. However, it faces difficulties in attracting sellers-according to a seller who received an invitation from Shein, “We also received the same news. I marked it as spam. ”
According to the Financial Times, Shein’s sales reached $30 billion in 2022, and the company expects the global GMV to grow to $80 billion in 2025. Therefore, the market may become very important in the future; There are already some areas of the market that have brought considerable sales. But it will also weaken Shein’s distinctive feature-featuring ultra-fast fashion product conception and manufacturing, and launching thousands of new SKUs every day. The market makes Shein closer to Amazon, a “universal store”, but Shein can develop rapidly precisely because it is different from .
Post time: Jul-31-2023