Global Craze! A large number of sellers are rushing into SHEIN

In recent years, SHEIN's performance has shown explosive growth. In the first half of 2023, SHEIN achieved its highest half-year profit to date.

As revenue and profits grow, SHEIN is also constantly expanding new business boundaries and promoting third-party platform business.

At present, SHEIN's platform model continues to expand, constantly radiating new vitality, and attracting a large number of cross-border sellers.

The expansion of the SHEIN platform model can meet the growing and diversified needs of global users, provide full-life cycle growth empowerment for small and medium-sized enterprises and sellers in different regions of the world, and promote sustainable development of all parties.

On October 10, the "SHEIN Official Multi-Operation Model Promotion Conference" hosted by Yien.com and Oushuitong was held in Shenzhen Bay Science and Technology Ecological Park, Nanshan District, Shenzhen.

At the meeting, Care Mo, the agency operation model investment manager of SHEIN US platform, shared the agency operation model of SHEIN US platform .

( Care Mo, the agency manager of SHEIN’s US site operation model )

As SHEIN's consumer awareness in the United States grows and its delivery services become more and more complete, localized product development and sales have become very important links.

SHEIN provides merchants with more sales channel options, while providing American consumers with more localized products and faster delivery services.

SHEIN 's US site 's agency operation model allows merchants to focus on products and be hands-off. Merchants only need to quote the supply price and payment, and then prepare the goods at SHEIN's US warehouse. SHEIN is responsible for operations and delivery.

SHEIN will provide merchants with exclusive support in product selection intelligence, business guidance, operational training and sales diagnosis.

In terms of store operations, SHEIN will be responsible for traffic introduction, store management and event docking. At the same time, SHEIN will also be responsible for customer service, including pre-sales consultation and return processing.

Regarding warehousing and logistics, SHEIN will be responsible for local warehousing and customer delivery.

Afterwards, Zhuo Wei's deputy general manager Fang Yun shared some things to note about shipping and delivery in the United States .

(Fang Yun, Deputy General Manager of Zhuo Wei)

Fang Yun pointed out that when sellers on the US site ship goods by sea, they need to pay attention to billing rules, optimize product packaging, and control costs. They should also pay attention to anti-dumping, certification, commodity inspection, high tax rates, whether the product is infringing, or counterfeit. At the same time, sellers must choose the corresponding delivery channel according to the timeliness, and also determine whether to declare tax refunds.

Regarding the importance of intellectual property rights to sellers , Ada , a partner of Shenzhen Yayi Intellectual Property Agency Co., Ltd. , said that branding has four major functions: first, enhancing recognition; second, credit endorsement, which can attract more repeat customers; third, creating premiums; and fourth, traffic support. SHEIN has a dedicated entry channel for brands and can provide specialized operation management.

( Ada , partner of Shenzhen Yayi Intellectual Property Agency Co., Ltd. )

In recent years, with the advancement of globalization and the continuous improvement of informatization construction, digital payment has fully penetrated every link of the cross-border e-commerce industry.

Zhou Jian, LianLian International Solutions Manager , said that with the increasing penetration of mobile Internet and the popularity of digital payment methods, digital payment has become an important choice for e-commerce users in North America. LianLian can ensure the end-to-end compliance of SHEIN sellers' funds when going global. In addition, LianLian International's service system, which was created for users, covers the multi-scenario trade needs of enterprises going global, helping SHEIN sellers go global.

(LianLian International Solutions Manager Zhou Jian )

Finally, Eddie Chen, SHEIN’s US product selection and operation manager, focused on SHEIN’s dual-mode investment promotion and SHEIN’s US product selection and operation manager .

( SHEIN US product selection operations Eddie Chen )

SHEIN 's platform-based cooperation model includes the self-operated model Marketplace and the fully managed model OBM.

The self-operated Marketplace model is that merchants have goods in overseas countries, and they can set their own prices, with SHEIN assisting in operation. Merchants fulfill their contracts overseas, and customers sign for settlement on T+7. The product weight must be above 400g, and there is no limit on the volume. Experienced sellers in the North American market (such as Amazon, Walmart, and independent sites) can give priority to this model. At the same time, it should be noted that these sellers must have met the annual turnover standards in the past.

SHEIN's self-operated Marketplace model has been launched in the United States, and other European markets are being launched one after another.

The fully managed OBM model is that merchants promote products in stock , and SHEIN sets prices/markets/fulfills the contract . For shipment, it is shipped by domestic and global air transportation , covering more than 150 countries around the world . In terms of products, it supports packaging with the longest side of 45CM and a weight of less than 2KG . Domestic traders, domestic factories, traditional foreign trade, and cross-border sellers can give priority to this model.

Regarding the product selection strategy of the SHEIN platform , Eddie Chen said that it can focus on four aspects, namely, hot-selling product selection, potential product selection, seasonal product selection and high-quality brands.

Popular products include home furniture, luggage, and fashionable women's shoes; potential products include kitchen appliances and baby walkers; seasonal products can focus on heaters; and finally, there are the options of high-quality brands.

The strategic direction that the SHEIN platform can provide is first of all the full supply of branded goods, as well as customized development of fashionable SKC. At the same time, it will also provide new styles and differentiated products to ensure fashion and consolidate core competitiveness. A very critical point is that SHEIN will provide the most competitive product pricing on the entire network.

At the same time, merchants must grasp the popular colors. The following are the color trends for autumn and winter 2023, which sellers can pay special attention to.

When it comes to creating hit products, Eddie Chen believes that we can start from multiple aspects.

First of all, store decoration. Both PC and mobile terminals can be used to decorate the store, show the brand's strength and tone, and increase related sales.

The second is to submit activities . Merchants can actively participate in the submission of activities. The main types of activities include flash sales,

SHEIN holiday marketing and category day/brand day.

Next, prepare SHEIN SFS warehouses. SFS (SHEIN Fulfillment Service) can provide merchants and users with a more stable and convenient user experience. Merchants can warehouse hot-selling products in advance to ensure the stable supply of hot-selling products and improve the fulfillment time of such products, thereby improving user experience. SHEIN SFS warehouses currently have limited-time discounts, free storage fees, and very favorable last-mile delivery fees.

Next is the platform label. When a new product is launched, the platform will label the product with a new product label ( New label), and new products will enjoy a large amount of recommended traffic. Through keyword search, new products have the opportunity to appear on the homepage. Another is the Best Seller label. Then there is the discount label, which can reflect the discount of the product. There is also the Quickship label. Products from third-party sellers enjoy an exclusive QuickShip logo to increase users' desire to buy.

Eddie Chen shared a case of a merchant experiencing explosive sales. In just three months, the monthly sales of the new store exceeded one million US dollars.

The merchant launched more than 2,000 products within two weeks of its entry. Soon after, Black Friday and Cyber ​​Monday came , and its monthly sales increased from 0 to more than 1 million US dollars.

After Black Friday, store traffic has been more stable than the overall market and has been gradually increasing. At the end of February this year, the store's sales even exceeded Black Friday's due to the launch of new discounted products on the platform, ushering in rapid growth .

In general, SHEIN is quite popular in overseas markets. SHEIN's platform model can provide sellers with a "menu-style" selection of overseas options, allowing many high-quality products and brands to easily open up the international blue ocean market.

For sellers who plan to enter the SHEIN platform and expand overseas, the platform has already reached the cross-border overseas trend. Sellers can choose the operation model that suits them and explore new ways of cross-border operation.

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