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Small seller 'sneak attack' SHEIN, reselling clothes on Ins, increasing the price by 6 times, making huge profits

Views: 0     Author: Site Editor     Publish Time: 2021-11-18      Origin: Site

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Small seller 'sneak attack' SHEIN, reselling clothes on Ins, increasing the price by 6 times, making huge profits

SHEIN was 'sneak-attacked' by a small seller.

More and more small sellers are discovering that there are opportunities to make profit on SHEIN.

SHEIN's clothing varieties are so rich, the styles are updated very quickly, and the prices are very cheap, which allows many sellers to see business opportunities:

Buy its clothes and then resell them through various channels,Increase the price by 2-6 times for each piece and earn huge profits.

For example, the printed suit jacket below was originally priced at US$31 on the SHEIN website. After the seller took it to the Instagram boutique, the price increased to US$59, which is almost twice the price.

An American customer from an Instagram boutique,Bought a suit for $80.

When I opened the clothes, I saw clearly printed on the label:'SHEIN' words.This set is obviously from SHEIN, but the price is far higher than the average price of SHEIN.

This phenomenon is becoming more and more common.Many small and medium-sized sellers are placing orders to buy clothing directly from the websites and stores of various large sellers, and then 'package' it a little, increase the price and resell it, and make profits from this.

Boutiques on Facebook and Instagram are one of their important channels for resale.

'Blue Ocean egainnews' learned that these sellers who open boutiques on social media platforms often package themselves, such as explaining on their profile pageSeller’s personal story, brand slogan, physical store address, studio or warehouse photos

This is used to better gain the trust of consumers. In fact, most sellers do not have physical stores at all, and the photos are stolen from other places.

Of course, these boutique sellers not only sell things on Instagram, they also use Instagram influencer marketing, Instagram advertising, etc. to guide Instagram users to their websites.

In addition to social media platform boutiques, third-party e-commerce platforms such as eBay and Etsy, as well as second-hand e-commerce platforms such as Mercari and Poshmark, are also important channels for small sellers to resell SHEIN products.

also,Fashion independent websites (Apps) such as Romwe and Zaful have also become 'passive suppliers', many of their clothes are also resold by small sellers at increased prices.

Some customers reported that they wanted to buy some unique clothes from handmade small businesses or craftsmen on the Etsy platform in order to 'escape' the same fast fashion style.Unexpectedly, many of the clothes found in the search were resold from fast fashion websites.

Some sellers directly copy product images from websites such as SHEIN and Romwe., there is no intention to hide it at all.

A skirt that originally sold for only $10 on SHEIN was priced at $60 when the seller resold it on the Etsy platform, which suddenly increased six times; an accessory that only sold for $12 on SHEIN was put on the Etsy platform and instantly became $50. Dollar.

Going too far, many sellers claim that their products arehand-made, production starts after the consumer places the order, so it takes a week to ship (actually to buy time for drop shipping).

Etsy, which was originally positioned as a platform for small-batch, finely crafted handmade products, expanded its categories and allowed small resellers to see opportunities. They resold fast-fashion brand products in large quantities, occupying the top position in search results, and even putting Honest Doing on the list. The sellers of the handicraft business were cornered.

Today, Etsy, dominated by a large number of resellers, seems to have become a comprehensive e-commerce platform for reselling cheap and fast fashion products.Currently, handmade and specialty items are increasingly difficult to find through its search function.

An industry insider searched and browsed 7 pages using some keywords.As a result, only two stores did not do resale business.No printed T-shirts, no cheap jewelry.

Therefore, many people say that Etsy seems to be becoming more and more like eBay, from selling unique, handmade goods to now generic, mass-produced goods.

However, Etsy doesn’t seem to care.

An industry insider said that as long as sellers can bring sales and revenue to the Etsy platform, their accounts will generally not be banned, and there is a high probability that their products will not be removed from the shelves.Etsy even recommends products in Instagram ads that these sellers have resold from other websites.

In addition to social media boutiques and Esty, these resale sellers who do 'retail arbitrage' also include second-hand e-commerce platforms.

For example, a dress on the SHEIN official website is priced at US$18.The seller put this product on the Mercari shopping APP (second-hand e-commerce platform 'Coal Stove'), and the price was adjusted to US$75.The price has increased by more than 3 times, and there is an additional shipping fee of US$5.99.

Apart fromMercari, as well as Poshmark and Depop.

However, it is understood that most of these sellers who have done well on Poshmark and Mercari have encountered 'Waterloo' on the Depop platform, because Depop caters to Generation Z and has higher requirements for wardrobe aesthetics and product image quality.

In addition, Depop has been cracking down on dropshipping sellers since March last year in an attempt to clean up low-quality products.

Why has SHEIN become the primary target of resale sellers?

Among all fast fashion brands, SHEIN has become the primary target for resale sellers.Why is this?

'Blue Ocean Yiguan egainnews' believes that the first thing is low price.

SHEIN's low prices never disappoint.

A small dress costs more than 30 US dollars at Zara, while SHEIN only costs half that. Many styles of skirts only cost single digits.

SHEIN's low prices make rivals such as Zara,, ASOS and Missguided feel 'scared'.

On SHEIN, you can find accessories for $1.38, long-sleeved T-shirts for $4, crop tops for $5, hot pants for $10, and printed sweaters for $11. , the price is too low to refuse.

Even with such a low price, SHEIN often launches discount activities, such as Black Friday promotions, with a maximum discount of 25% off.

No one can refuse a low price, and a low price with a sense of design makes it even more difficult for you to refuse.

SHEIN's low prices have great appeal to the new generation of young people in Europe and the United States.

An executive of SHEIN said that the number of registered users of SHEIN is about 120 million, and the daily active users are stable at more than 30 million, more than half of which are from the United States.

The vast majority of these users are young people, especially Generation Z, who are under economic pressure.

These young people are in high school, college, or have just graduated from college.While attending college, many young people take out loans or work part-time to pay for tuition and living expenses.

Statistics show that about one-third of American teenagers work part-time.

Piper Sandler survey found that American teenagers dailyAnnual consumption has dropped to US$2,150, reaching its lowest value ever.As early as 2006, American teenagers spent more than $3,000.At the same time, the frequency of these young people visiting stores is declining. Even women who love makeup have seen a 20% drop in cosmetics consumption.

It can be said that times are developing, but American teenagersThere is less money at your disposal,This is related to the overall background of the epidemic outbreak and unemployment.

So, SHEIN’s super low price meets the needs of the majority of young people.

Secondly, SHEIN’s high-frequency new products and rich styles make many young people want to stop.

Cheap is not necessarily king. Many clothes are cheaper than SHEIN, but still no one cares about it.

SHEIN's clothing is not only cheap, but also has a wide range of styles.

The richness of its clothing styles can be seen from the frequency of new releases.

According to 'Latepost' report in 2020, SheIn launched 150,000 new models throughout the year.The average monthly payment is more than 10,000,Only women's clothing has an average of 2,000 new styles, including accessories and old styles.

The amount of new products released in one or two months is equivalent to the amount of Zara in one year.

On a certain day this year, SHEIN disclosed the new arrival volume of 'Daily New' on its page.Reached 27,463 pieces.

A basic T-shirt may come in 10 colors, 6 sizes and 2 collars.Just one product, maybe up to 120 SKUs.

In this way, SHEIN constructed a styleIncomparably rich costumes 'Big Maze', making consumers linger and enjoy themselves.

SHEIN has such a rich range of clothing and a frequency of new releases that scares even Zara. The main reason is that there is a strong supply chain support behind it.

In this supply chain, there are countless quick-response factories.

SHEIN has shortened the process from proofing to production to 5-7 days at the fastest, which is 7 days shorter than the fastest time of competitor ZARA.Some popular clothes,For additional SHEIN orders, the factory can deliver the goods in 3-5 days.

According to Jiemian News, a garment factory in Nancun, Guangzhou only serves SHEIN, with a monthly output of 300,000-400,000 pieces.It can be said that almost all the production capacity of this factory is used to serve SHEIN.

There is a female worker who uses a sewing machine in the factory. She can make thousands of simple designs in a day, and she can make three to four hundred pieces of more complex ones.Sometimes, seven or eight different costumes can be made in a day.

And a female worker who sews buttons has to make three to four hundred buttons a day.

It is factories like Nancun that support SHEIN to launch a large number of new clothes every month or even every day, and also attract countless consumers to frequently visit the website and App to purchase, so that SHEIN’s daily active users have reached 30 million.

Just having rich styles is not enough to attract so many buyers.The design sense of SHEIN's clothing is a great weapon.

The feedback from an American customer is very representative.After purchasing a piece of Prada, the customer then went to SHEIN to shop for a piece of clothing and matched it with each other without any sense of inconsistency.

The variety of SHEIN clothing styles and sense of design can be seen in its conquest of consumers.

The reason why SheIn’s clothing has such a strong sense of design is that it can pique users’ interests.

'Blue Ocean egainnews' believes that it is mainly because it adopts the 'artificial + data' design model.

SHEIN has accumulated a large amount of user behavior data through its website and App. Its designers do not need to rely on their own inspiration to design, but are artificially modified under the 'feeding' of SHEIN's big data, and the designers' 'Artistic work' is transformed into 'precision work' guided by data.

In this way, SHEIN's products ensure a strong design style that is in line with users' appetites.

It is SHEIN's ability to quickly introduce new products and its extremely rich and design-rich styles that have given it a large number of fans.

Survey data shows that in 2020, in a survey of 9,800 teenagers with an average age of 15.8 years old, SHEIN ranked among the top 10 in popularity.

In summary, SHEIN's clothing styles and styles have been proven by the market, the styles are very rich, and most importantly, the prices are very cheap.

Therefore, SHEIN has become the 'number one target' for many small sellers who seek resale arbitrage.First, there are many choices, and second, there is more room for price increases.

Having said that, SHEIN does not allow third parties to operate without authorizationsell, reproduce, and modify its products.

However, as long as the seller does not purchase hundreds of products at once and create a store that is almost the same as SHEIN,It is not easy to be discovered by SHEIN.

After all, SHEIN is already a global brand with a very large variety and quantity of products, and it is impossible to fully control every product.

In addition, some sellers are very smart. When reselling SHEIN clothes, they generally do not change the design and labels of the clothes without authorization and try to turn them into their own products, because if this situation is discovered, it will be more serious than resale.

In addition, according to some merchants, SHEIN provides 'wholesale' and 'shipping' services., the seller can sign an agreement with it.Sellers who purchase wholesale can enjoy large discounts, with 25% discounts on orders of $200 and above, and discounts of up to 40% on orders of $3,000 and above.

but,SHEIN stipulates that retail sellers (resale sellers) cannot use product model images on the official website, that is to say, if the seller wants to resell SHEIN products, he needs to take the product pictures himself.

Of course, in addition to SHEIN, many small and medium-sized sellers also purchase clothing from other platforms and resell it.

Besides SHEIN, what other platforms do sellers use to get goods?

'Blue Sea egainnews' learned that these retail sellers who do drop shipping not only purchase from SHEIN, they also choose Chinese fast fashion brands such as Romwe and Zaful, as well as China's B2B cross-border e-commerce platforms. For example, Alibaba platform, AliExpress, and FashionTIY, etc.

Romwe is a clothing, shoe and bag brand. Its products focus on teenagers and young people. The prices are also very cheap, ranging from a few dollars to more than ten dollars, and basically no more than 20 dollars. It is a European and American style.It has a good reputation among consumers in European and American countries

ZafulIt is one of the relatively healthy e-commerce independent station brands of Global E-commerce under Cross-border Tong.

ZafulIt is a fast fashion brand that started out as a swimwear brand. It once ranked first in China's swimwear export category and successfully captured the minds of consumers.

It focuses on Instagram style and focuses on young female consumer groups.Products conform to trends and consumer preferences, the price is not high, and the update speed is also very fast.

In addition, everyone is familiar with Alibaba platform and AliExpress. First of all, they are platform-type, bringing together high-quality suppliers from all over the world. They have rich categories and many products, not limited to clothing and fashion supplies. Secondly, they have low prices, resale and There is profit to be made from dropshipping.

In terms of price and service, FashionTIY also has certain appeal.

FashionTIYIt is a comprehensive wholesale shopping platform, that is, a B2B cross-border export e-commerce platform. It has a certain reputation in the North American and European markets.Product wholesale prices are about 30% lower than similar wholesale websites, you can also use discounts.

FashionTIY claims to have 100,000+ products, covering fashion, accessories, jewelry, accessories, beauty and other categories. Many of its clothing styles are similar to SHEIN.

FashionTIY has become popular with small resale sellers,That is, it has no minimum order quantity,This provides convenience for small sellers, and there is a 30-day after-sales service.

How many resale sellers can you support through dropshipping?

In fact, many sellers who resell goods adopt the drop shipping model.

Drop shipping, or drop shipping, has been around for decades. Consumers buy products from retail sellers, who then place orders with suppliers, who then deliver the goods directly to consumers’ homes.

During the entire process, the retail seller did not even touch the product.

This model was previously popular in categories such as furniture, electrical appliances, and mattresses.Because these products are large and heavy, it is inconvenient to transport and store inventory. They have always been supported by department stores JC Penny, Sears, and furniture brand Ikea.

With the rise of social e-commerce and other models, the dropshipping model has reached out to almost every online shopping user.

For example, a number of 'drop shipping' platforms have emerged in places such as Yiwu and Shenzhen in China. These companies have set up warehouses in the United States, Europe and other places, and purchased a large number of goods from China, including clothing and small household appliances. , clothing, novel and unique small commodities, etc.

Then, these products are digitized, so that resale sellers can synchronize with one click and publish the products on their own independent websites, or even eBay, Amazon stores, etc.

After the buyer places the order, these delivery platforms will deliver the goods.Sellers can also customize products with their own brand and logo.

In addition to supply, these platforms also make money from value-added services.Including logistics, COD delivery collection, product quality inspection, and even product video shooting, etc.

Of course, some sellers open boutiques on Instagram and Facebook, and some also open stores on Alibaba platforms, AliExpress, and, or useShopify’s one-piece shipping platform Oberlo, directly extract product information from AliExpress and other platforms, add it to your own Shopify store, and then draw traffic from social media platforms.

The reasons why sellers choose to do dropshipping are: first, the threshold is low, second, it saves trouble, and third, they can make money.

We have noticed that under the packaging and promotion of many institutions and social media users, dropshipping has become an effective way to 'get rich quickly'. Sellers only need to use a very low cost, a computer and a WiFi. By building a digital store, you can make money, at least hundreds or thousands of dollars a week.

There are many expensive online courses online that teach sellers how to become a successful dropshipper and also guide sellers to sell goods at 4-5 times the wholesale price.

There is no shortage of tutorials on 'How to start dropshipping sales' on YouTube. A video of more than ten minutes has received 1.16 million views and 68,000 likes.

However, today's 'dropshipping' has changed its flavor compared to before.When you hear about dropshipping, you will easily associate it with 'fraud' and 'inferior products'.

Some dropshippers are small businesses with few funds, few employees, and no inventory. In essence, they only have a digital store. The product information provided may be limited and vague. Therefore, sellers are advised to carefully screen.

It is undeniable that some sellers do make money by shipping goods and are able to travel around the world and make investments everywhere, but these are only a very small number. More sellers are cut off and have no profit and can only close their business. Some sellers even To the point of losing money.

In fact, there are also great risks in the drop-shipping model. First, the seller cannot fully control the supply chain, product quality and order delivery speed. Second, if consumers know the source of the goods, they may buy directly from the supplier. Third, there is infringement. and the problem of counterfeit goods. These three situations can easily lead to a large loss of customers.

The dropshipping model may be profitable in the short term ifConsider long-term growth and development, or build a brand, in order to retain consumers.

Even those dropshipping sellers who have made a lot of money have either transformed into personal brands or considered selling their businesses and finding another sustainable development path.


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