With the introduction of SHEIN's semi-fulfillment model, the cross-border e-commerce sector has encountered new business opportunities. This model not only offers sellers the advantage of commission-free, rent-free, and zero-cost store setup but also opens new sales channels for sellers with local stock in overseas markets. Understanding how to leverage overseas warehouses to seize this opportunity is crucial for many sellers.
SHEIN's semi-fulfillment model, similar to that of Temu, requires sellers to have local stock overseas to achieve local fulfillment within seven business days. This model is especially suitable for sellers with existing overseas inventory, whether in self-built warehouses, SHEIN's official warehouses, Amazon warehouses, or third-party overseas warehouses.
Moreover, SHEIN allows sellers to participate in pricing and operations with the platform's assistance while maintaining autonomy in product selection. This flexibility and control attract various types of sellers, including boutique sellers, multi-channel sellers, and brand-oriented sellers.
Types of Sellers Suitable for SHEIN's Semi-Fulfillment Model
Sellers with Rich Overseas Inventory: For those with substantial inventory overseas looking for quick liquidation, SHEIN's semi-fulfillment model provides a new platform to try without additional costs.
Multi-Channel Sellers: These sellers typically allocate inventory based on the profitability, cash flow, and sales performance of each platform. SHEIN's new model could become a priority for them.
The Importance of Overseas Warehouses in the Semi-Fulfillment Model
Cross-border e-commerce platforms are increasingly adopting semi-fulfillment models, partly driven by the U.S. "de minimis provision" tariff policy. This policy allows packages valued under $800, sent directly to individual buyers, to enter the U.S. tax-free. However, this provision is under threat of being repealed. The U.S. Congress has proposed bills to eliminate this tariff exemption for low-value goods, and recent discussions indicate a renewed focus on this issue. If repealed, it could devastate cross-border small parcel direct shipping.
Given these factors, U.S. overseas warehouses are becoming increasingly crucial in cross-border e-commerce logistics. To maximize the benefits of using U.S. overseas warehouses, sellers should consider the following:
Choosing the Right Service Provider: Sellers should select overseas warehouse service providers that offer comprehensive services based on their needs.
Planning Inventory and Transportation: Based on sales forecasts and market demand, sellers should plan their inventory and transportation to ensure timely delivery.
Efficient Customer Service: Maintaining communication with the overseas warehouse service provider and promptly addressing issues can ensure the best service experience.
The introduction of SHEIN's semi-fulfillment model offers new opportunities for cross-border e-commerce sellers, particularly in the U.S. market. Simultaneously, the importance of U.S. overseas warehouses is rising, becoming a key component of logistics strategies. Through careful planning and management, sellers can fully leverage this model and overseas warehouse services to capitalize on the new growth phase in cross-border e-commerce.
Comments