Shein is taking on the biggest e-commerce company in the world, Amazon, by expanding its marketplace beyond fast fashion and venturing into categories like:
- Home appliances
- Electronics
- Gardening supplies
- Kitchen utensils
- And more
š Transition to Third-Party Retailers
Until recently, the Chinese-owned e-commerce company relied on sourcing its own products through its on-demand manufacturing model. But now the company has followed Amazon's lead by opening its marketplace to third-party retailers. Business Insider reports that this move, however, may expose Shein to similar issues faced by Amazon's Marketplace, including counterfeit and copyright infringement problems.
ā ļø Copyright Woes
As a retailer known for its “dupes,” Shein has faced numerous lawsuits from brands like Ralph Lauren, Oakley, and Dr. Martens that claim the e-commerce platform sells products that infringe on their intellectual property.
Quoting the report:
Amazon has faced the same issues as it became an easy place for counterfeit businesses to set up shop. Thousands of customer complaints have detailed purchases they thought were from authentic brands they trusted but turned out to be copy-cat products.
ā¦ Last year, the e-commerce giant removed more than six million counterfeit items from its marketplaceā¦
… Shein's problems could get harder to manage as it grows.
Bloomberg data shows while customer spending on Shein is still a fraction of Amazon's, the company has seen substantial growth in other areas. Last year, Shein surpassed Amazon and claimed the title of the most downloaded iOS app in the United States.
Image: Shein
