Chinese Cross-border E-commerce SHEIN Succeeds at Core

Background

Recently, the latest shopping app ranking from PYMNTS showed that Chinese cross-border e-commerce independent site SHEIN once again surpassed Amazon, becoming the most downloaded shopping app worldwide. This global fast fashion e-commerce company was founded in 2012 and quickly rose to fame after the Amazon store closure event in 2021, successfully surpassing Amazon to become the highest downloaded shopping app on both Android and Apple app stores, taking the lead in markets like the United States.

Success Formula

The main reason why SHEIN stands out is its use of big data, flexible supply chain, and internet celebrity endorsement model. Unlike other brands, SHEIN chose to establish an independent site from the beginning rather than relying on third-party platforms like Amazon.

Shift in Strategies

As Chinese sellers realize the advantages of independent sites, more and more sellers are shifting from third-party platforms to multi-platform operations and establishing their own independent sites. According to data, the number of independent sites established by Chinese companies overseas saw a sharp increase in 2021, and the share of independent sites has been climbing year by year.

Advantages of Independent Sites

Independent station refers to a cross-border e-commerce website established by the seller independently. Compared to third-party platforms, sellers can have their own branded official website and independently connect with logistics, warehousing, payment, and other links, thereby achieving more comprehensive operation. In addition, independent stations can help sellers accumulate user data, promoting better marketing conversion.

Dual-track mode

It is worth noting that sellers do not completely abandon third-party platforms but adopt a 'third-party platform + independent station' dual-track mode. This mode helps business growth, enhances risk resistance, and saves platform commissions for sellers.

Operational challenges

For Chinese cross-border e-commerce players, although building an independent station can bring a series of advantages, it also requires facing many challenges, such as the complexity of independent station SaaS, requirements of different markets, and the difficulty of data integration. Therefore, improving data analysis capabilities and optimizing user experience are crucial.

Future outlook

In the field of cross-border e-commerce in China, tools and traffic are not the most core competitive advantages. Drawing on SHEIN's successful experience, big data application, flexible supply chain, and internet celebrity sales model are the real 'moat.' However, the shaping of these core advantages requires long-term accumulation. Chinese cross-border e-commerce needs to make strategic adjustments and face future challenges.