Shein integrates with logistics platform for third-party U.S. sales

A global fast fashion retailer is offering sellers on its third-party U.S. marketplace a new hosted logistics option.

Shein, which is based in Singapore but was founded in China, is an online retailer of value-priced fashion and lifestyle items that holds the biggest share (about 40%) of fast-fashion spend in the U.S. 

As part of a continuing effort to more effectively manage its burgeoning U.S. operation, Shein is collaborating with Flexport, a hosted logistics provider that manages end-to-end workflows including freight, distribution, e-commerce fulfillment, and direct-to-consumer fulfillment, as its preferred logistics provider for the Shein Marketplace U.S. third-party sales platform.

In a LinkedIn post, Shein and Flexport said they seek to help retailers “scale their business faster and unlock reliable, nationwide U.S. fulfillment” with this new partnership. Specific services and benefits the two companies are highlighting include:

• Seamless syncing of inventory between the Shein and Flexport platforms for more accurate stock levels and smoother operations.
• Shein orders automatically trigger shipping and logistics processes in Flexport for easier fulfillment.
• Automation of previously manual tasks such as data entry and management, leaving more time for sales-related activities.
• Integration of end-to-end supply chain operations from inventory management to sales.

Shein eyes U.S. market

Shein, which entered into a deal with Forever 21 in 2023, exhibited robust growth throughout last year. In the first 10 months of 2023, Shein’s sales increased by more than 20% compared to the same period in 2022.

Now, the company plans to open a Seattle-area office in downtown Bellevue, Wash. The nearly 10,000-sq.-ft. office space at Bellevue's Key Center will serve as a hub for the company’s U.S. fulfillment and logistics, as it attempts localize and support speedier delivery times for American customers.

Shein anticipates that more than 50 employees will work from the new space by the end of 2024, and is currently hiring for a variety of positions to support logistics and distribution efforts across the U.S. Employees in the Seattle area will join a growing U.S. team of more than 1,500 corporate and warehouse employees across the country in cities including Los Angeles, San Diego, Philadelphia, Washington, D.C. and Whitestown, Ind.

In addition, previous media reports indicated that Shein confidentially filed for an initial public offering (IPO) in the U.S. stock market with the Securities & Exchange Commission (SEC) in November 2023. 

Spending on fast fashion in the U.S. — one of the largest markets in the world for fast fashion and luxury shopping — grew 2% in 2023 compared to the same period the prior year, according to recent Consumer Edge data.