Orders are placed as soon as the product is put on the shelves! Cross-border sellers begin to flock to SHEIN

A group of sensitive sellers have already started to rush in.

Last week, SHEIN officially announced the launch of the platform model . Following the Brazilian market, the platform model was officially launched in the United States and will be further promoted to the global market. This news was forwarded by many media , but SHEIN is as low-key as ever and is currently only recruiting investors in a small range.

In fact, before this official announcement, a few cross-border sellers had learned that SHEIN had launched the platform model, so they flocked to it hoping to get in touch with the official investment manager and complete the settlement as soon as possible. However, most sellers still do not know that SHEIN has opened the entrance to recruit third-party sellers of all categories and wants to build a comprehensive e-commerce platform.

It is understood that SHEIN's entry is currently through targeted invitations, which will be gradually opened up in the future. These targeted invitations are for single-store GMV of more than 2.2 million US dollars on other cross-border platforms , and other sellers are also very enthusiastic about applying on their own initiative. The reason is simple. SHEIN has long been ranked at the top of overseas shopping APP downloads, with high popularity, a huge user base, and surging traffic. Although the platform model has just started, the starting point is very high, and it is likely to have a high return if you enter the market now.

Feedback from existing sellers is more convincing. Some sellers bluntly said that "orders came in as soon as they were put on the shelves", and high-priced products were also very popular, which gave sellers who were struggling to find new channels an opportunity.

SHEIN launches platform model in the US, new sellers have placed orders

On May 6, SHEIN announced that it would officially launch the platform model in the United States, and would later promote it globally. In the future, local brands, merchants and global third-party sellers from more markets would join the SHEIN platform. In other words, the SHEIN third-party platform is now open.

Are sellers interested in this new platform? The editor asked some sellers, some of whom are still unaware of SHEIN's changes in investment promotion, while the sellers ahead have already tasted the sweetness.

——"It's been three weeks now, and I've sold $5,000 with zero commission. It feels great. "

——"The first order was placed within a week, for $219. It's a good start."

——"Someone around me has also joined, so the orders are naturally good, but the threshold is too high."

One seller introduced that after entering the SHEIN platform, he started selling home furnishing products and put 9 products on the shelves. The average order value was around US$40. Orders were placed as soon as the products were put on the shelves. The traffic and order volume were much better than Walmart. After the orders were placed, they were delivered through multiple channels through FBA.

Not long ago, the SHEIN investment manager extended an olive branch to the seller "Erin Mingyue" (hereinafter referred to as "Erin"), but due to the shortage of manpower, she temporarily declined the invitation to join. After mentioning this in the seller group chat, Erin received a large number of friend requests.

"A lot of people added me to ask for the WeChat of the investment manager. I have already told them that this targeted invitation is for a single store to reach an annual GMV of 2-4 million dollars. They all noted that the turnover has reached that level. It seems that there are still many sellers who make money."

Another seller, Tudou Cross-border Diary, contacted the SHEIN investment manager through a friend. After a phone call, she planned to complete the store opening within a week, hoping to have another channel for distribution.

"New SHEIN stores are exempt from commissions for the first three months, and then 10% thereafter. The backend is simple. The investment manager said that shipments must be made from the United States, so when the order volume is small in the early stages, multi-channel distribution orders can be created directly from the Amazon FBA warehouse. When the volume increases in the later stages, shipments can be sent to SHEIN's overseas warehouses in the United States," she said.

Sellers speculate that there may be different types of cross-border sellers, some shipping from overseas and some shipping from domestic sources. The entry of different types of sellers may be gradually liberalized in the future, with targeted invitations being the main approach in the early stages.

According to the sellers who have settled in, the thresholds for different categories are different; the currently supported delivery methods include Amazon FBA delivery or delivery from the seller's third-party overseas warehouse. In addition, SHEIN's backend experience is similar to Walmart, but the traffic is much better.

"The investment manager said that they have worked hard on the background, and their goal is to be on par with Jeff and Andy." Irene said that after reading the investment documents, she also wanted to try it, but considering that her products are more suitable for Amazon, she is seriously short of manpower and does not want to expand, so she had to refuse. But now, she plans to reconsider the matter of entering.

SHEIN is still keeping a low profile. However, the investment managers have been releasing investment information through social channels such as WeChat Moments, Weibo, and Xiaohongshu. After they appear, they generally receive many inquiries about "how to settle in".

SHEIN has become a new channel for sellers by attracting investment in multiple categories

SHEIN's transformation from a fast fashion giant to a platform is a significant step.

Seller "Cross-border Lao Zhang" analyzed: "SHEIN started out as a fast fashion company. Previously, it also told the DTC story in the capital market and has always been benchmarking Zara. If it now engages in full-category investment promotion, selling home furnishings, electronic products, etc., and expands the platform on the basis of its original self-operation, the platform's genes and positioning will have to be redefined. "

It is reported that SHEIN provides a series of preferential measures for new sellers, including no commission for the first three months and the platform bearing the return shipping costs. Subsequently, the platform will charge a commission of 10% of sales for all categories, and the sellers will bear the return shipping costs themselves.

SHEIN may have multiple considerations for its platform model, and sellers will vote with their feet. Like many of his peers, Zhang will also consider joining SHEIN to open up new sales channels.

"We are deeply engaged in one category. If SHEIN opens this category, we will also consider it, just like we also opened a Temu account. Without adding too much extra inventory, one more channel will provide one more source of traffic."

So what categories does SHEIN recruit? Its website is currently displaying categories such as home furnishings, beauty, small appliances, electronic products, shoes and bags, jewelry and clothing.

In the subdivision box of the category navigation bar, you can also see multiple categories such as sports and outdoor (sportswear, sports accessories, etc.), office and school supplies, watches and accessories, electronic products, etc.

According to the recruitment information released by one of the investment managers, the categories of products he is responsible for include home appliances (kitchen appliances, household appliances, personal care appliances), home decoration (cabinets and accessories, LED lighting, chandeliers & fans ), and furniture & outdoor garden furniture (hand tools, plumbing engineering, hardware accessories, bathroom fixtures, etc.). It can be foreseen that the categories on the platform will soon be enriched and better meet consumers' one-stop shopping needs.

Another point worth noting is that SHEIN mentioned that through its platform, sellers can see the real-time performance and sales of goods, and at the same time, with the advantages of SHEIN's on-demand supply and demand trend forecasting, continue to improve their overall competitiveness. Sellers will also further benefit from SHEIN's large consumer base, one-stop delivery and fulfillment system, and SHEIN's brand influence, marketing experience and social media channel resources in the global market.

In 2022, SHEIN topped the list of overseas e-commerce downloads with more than 170 million downloads. But now, in addition to being a third-party platform with a large customer base and strong brand power, SHEIN can also provide sellers with certain supply chain experience and social media channel resources, which may be a surprise for sellers who are worried about how to refine their operations.

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