Shein to help vendors make a million

By CHEN Qirui

Chinese cross-border e-commerce platform Shein has launched a campaign to help small vendors with sales.

AcceleraSHEIN will offer guidance and incentives to 100,000 vendors, and help them to achieve annual sales revenue of US$100,000 (720,000 yuan) within three years, along with assisting 10,000 vendors in reaching US$1 million.

This is Shein’s boldest move since transitioning from a single brand to an e-commerce platform.

High threshold

In May, Shein launched “SHEIN Marketplace” in Brazil, which allowed other brands to set up online stores on the Shein website. According to business media LatePost, Shein plans to invest 750 million Brazilian Reais in Brazil over the next few years and collaborate with 2,000 local manufacturers.

The platform will soon expand to the United States, and the rest of the world but only a few brands have set up stores, partly because Shein has a high threshold for brands to get in. Until now, brands that want to open stores need annual revenue of US$2 million on Amazon or eBay.

It looks like Shein is making rules and leading the way, but rivals are closing in. Temu, the bargain-hunter site owned by Pinduoduo’s parent company is expanding rapidly. Alibaba’s AliExpress is gaining its foothold. ByteDance has already been and gone: Dmonstudio went bust after only four months.

In terms of clothing alone, these platforms are not yet competitors for Shein. However, generalist platforms attract consumers with diverse needs and a larger customer base benefits the clothing business.

More complex business model

In the past, Shein has developed a multi-brand matrix including SHEGLAM, PETSIN, MOTF, and Luvlette, but none of these brands mean much to consumers. Brands that already have a good reputation may be a more direct approach.

Shein is also adjusting its supply chain and office layout to adapt to a more complex business model with headquarters in Dublin, the capital of Ireland, as well as logistics and distribution centers in Poland, Italy, and the United Arab Emirates.

Shein disclosed a profit revenue of US$700 million in 2022, a lot less than the US$1.1 billion seen in 2021 but maintaining profitability for four years.