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CNShein commodity provider. China dropshipping business with Shein
Shein is a world-famous Chinese online store. Company specializes in women’s, men’s and children’s clothing, shoes and accessories, as well as home and beauty products under its own brand.
Shein is owned by ZOETOP Limited, based in Hong Kong. Brand was founded in October 2008 and currently covers 220 countries and regions worldwide. Shein became the most popular clothing brand in December 2022, overtaking Zara, Nike, Adidas, and other prominent brands.
Shein presents itself as an «international e-commerce platform operating in the fast fashion industry on B2C model (business for consumer or direct sales to buyers)».
The most attractive in Shein work is a huge selection of products at very low prices. The range of online store is constantly updated with the most trendy models. About 6000 new products with an average price about $ 7.9 appear on the site every day.
What is the secret of Shein success? Let’s consider company business model in more detail.
How does Shein Chinese online store work?
Shein is unlike other popular and well-known marketplaces: Taobao, Tmall, AliExpress, Ebay and the like. These trading platforms sell goods of a large number of different sellers. In this way, they combine in one place different sellers and brands.
In its turn, Shein sells products of its own brand and it has no production. It sells its own products and does not offer any other brands on its website. This is the key difference between Shein and other Chinese marketplaces.
The second important difference is that there is no specialization in products. There are sold a large number of products of different assortment: from office to tools and electronic components. Shein specializes in selling clothing and footwear products.
Why doesn’t Shein have its own production? Shein has a well-established manufacturing chain from idea to product. Company has a team of designers trained in the best international fashion schools. They design fashion models, whose style won buyers’ hearts. After that, tailoring is ordered from various Chinese manufacturers. Materials for goods are also used exclusively Chinese.
Shein has strong business ties with Chinese garment manufacturers and factories through timely payment of their orders, which is quite rare in China. Shein controls production process of its goods. For this purpose, Shein clothing industry uses a special application that the company has developed to control production. Thus, the online store presents Chinese factory products that meet all international quality standards.
In addition, Shein uses the concept of fast fashion and business model on demand to remain popular with buyers: goods are produced in small batches and become mass-produced only if they are very popular with customers, are fashionable and trendy. According to the company, each product is created in the amount of 50 to 100 pieces. Replays are possible depending on its popularity among buyers. When creating products, account is taken not only of fashion trends from global brands, as well as the tastes and preferences of social networks users.
Shein is constantly collecting and analyzing customers’ data which helps to discover the latest fashion trends, and using artificial intelligence to develop new designs. For example, if social networks users see some fashionable thing, then you can wait for it on Shein but it will be ten times cheaper than other world brands offer.
Currently, the geography of Shein logistics covers more than 220 countries now. They have several warehouses in China as well as in Europe and the US.
In addition, Shein uses a competent marketing policy. The company actively and even aggressively uses social media. Shein is the most mentioned brand in TikTok social network now. The number of views with hashtag #shein reaches 18.4 billion. The company uses targeted advertising and also cooperates with fashion bloggers and stars who influence consumers.
Shein target audience is young people who have relatively low purchasing power and use various media channels. The so-called Generation Z.
But Shein has not only positive cases about work. This is a rather scandalous brand, which has been repeatedly accused of low quality products, theft of designs of large brands and pollution. However, all these aspects only contribute to its popularity.
According to various internet experts, the formula of Shein success and popularity lies in the availability of fashion products to a wide range of consumers.
How do I run a dropshipping business with Shein?
What are the opportunities to start your online business with Shein?
As we’ve already learned, Shein offers a wide range of fashion products at very low prices compared to other clothing brands. Therefore, it is possible to organize a resale business of Shein goods under dropshipping scheme.
Dropshipping is the sale of goods directly from manufacturer to buyer. Such business organization allows you to start your business with minimal investment, as it significantly saves the cost of purchasing goods, their storage, as well as warehouses and other premises rental.
Businessman simply creates an online store and places information about goods. His task is to attract buyers and sell goods. In this case, he earns from the mark-up on goods. Buyer pays him for help in choosing and buying goods.
Shein products are in high demand by customers and are already known worldwide. This will therefore facilitate the promotion of Shein merchanting business. Very low commodity prices will also make your business attractive. Shein products will be inexpensive even with your markup.
OpenTrade Commerce offers API Shein to get a catalog of Shein products to your website, as well as resale shop to start resale business of Chinese goods. Read more here.
Shein products can be a great addition to the existing range of products if you are already doing business with China.
Disadvantages of Shein dropshipping
Shein uses B2C model, i.e. it is directly aimed at the end user. And many countries can buy goods directly on Shein website.
Shein is a brand, so all products are marked with their logo. Your customers will always know where they came from. Working with Shein will be impossible if your goal is to create a unique business and brand.
Dropshipping with Shein is also limited by certain types of goods, namely clothing, shoes and accessories. In case of working with other marketplaces, for example AliExpress, there is a possibility to choose from a large number of categories of goods.
Shein low prices are both an advantage and a disadvantage for dropshipping business. Goods will become more expensive with your margin. At the same time, they will still compete with Shein. There is a chance that in this case buyers will want to buy from Shein directly.
Thus, dropshipping with Shein is possible but it is better to work in a market where there is no Shein direct shipping or there are some problems with buying at Shein. Then Shein business will be successful and profitable.
Shein brand has been around for a long time and successfully. Buyers love Shein for stylish and trendy products at affordable prices.