Shein, the Singapore-based apparel giant most recently valued in May at $66 billion and considered the world’s most valuable private e-commerce company is coming for Amazon, seeking to lure away clients, according to the Wall Street Journal.
Shein Group Ltd. ranks No. 2 in the Asia Database, Digital Commerce 360’s rankings of the largest online retailers in Asia by web sales.
It is trying to recruit U.S. brands that are already big on Amazon and Shopify, part of its plan to transform into an online ‘everything store’ where shoppers can buy a wide range of goods from outside sellers and Shein alike.
Shein has since May 2023 launched its marketplace in Brazil, Mexico, and the U.S., with further plans to expand to Europe.
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Perks offered to sellers with at least $2 million in annual sales on Amazon and who would migrate to Shein include three months of commission-free sales and zero advertising charges.
The Asian e-commerce giant plans to onboard 100,000 third-party sellers to its marketplace, with annual sales reaching $100,000 each, and 10,000 sellers with $1 million in annual sales each within three years.
U.S. consumers paid $8 billion for fast fashion products on Shein in 2022, according to Euromonitor International estimates and launched distribution centers around the U.S. to fulfill orders there more quickly.
Amazon is also No. 3 in the Online Marketplaces database, which ranks the 100 largest global marketplaces.
Shein future counterfeit challenges
Shein has long been known for its products that look very similar to designer products. Brands such as Stussy, Ralph Lauren, Oakley, and Dr. Martens have sued the fast-fashion company for selling products they claimed infringed on their intellectual property.
But with many packages shipped through e-commerce sites like Shein that are small in value government agencies can’t properly monitor just how many counterfeit goods are entering the U.S., and which cost the global economy $500 billion per year.
Amazon faces the same counterfeit issues with other e-commerce sites of third party sellers when products people trusted turned out to be copy-cat products.
In 2022, the U.S. e=commerce giant removed over 6 million counterfeit items from the marketplace and referred over 1,300 individuals to law enforcement in the US, UK, Europe, and China, according to Amazon’s annual Brand Protection Report.
The same challenges could face Shein as it grows. In 2022, Shein surpassed Amazon and became the most downloaded iOs app in the U.S.
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