Shein is taking steps to expedite shipping times for its customers in the United States by sending more low-priced apparel and home goods to its U.S. warehouses from China. This strategic move, revealed through data from the global trade analysis firm ImportGenius and exclusively shared with Reuters, aims to reduce the wait times that many American Shein shoppers have faced, which have sometimes been as long as two weeks or more.
The lengthy shipping times had placed Shein at a competitive disadvantage compared to larger retailers like Target, Walmart, and Amazon, especially during peak holiday shopping seasons.
Industry analysts suggest that Shein’s ongoing efforts to increase bulk shipments to the U.S. are driven by a desire to compete effectively on delivery times as it eyes a potential initial public offering (IPO). This shift in strategy is significant for Shein, which traditionally dispatched goods directly from China to customers, given its absence of physical stores in the U.S.
ImportGenius data shared with Reuters demonstrates that Shein’s ocean shipments of apparel have surged by more than 2,000 per cent over the past two years, rising from 312,385 pounds (141,695 kg) imported in bulk on container ships in 2021 to over 6.8 million pounds so far this year. Almost all of these shipments originated in China, where Shein relies on a network of suppliers to produce its extensive range of affordably priced merchandise.
In 2022, Shein established a warehouse in Whitestown, Indiana, where it typically stores inventory, allowing for delivery to customers within four to seven business days. The company had introduced a faster delivery option called “QuickShip” in the same year for goods stored in the U.S., providing significantly quicker delivery times compared to its standard shipping, which could take anywhere from nine to 14 days.
While facing prolonged delivery times, UBS analysts predict that Shein customers are likely to make infrequent purchases from the platform, particularly during crucial holiday shopping seasons.
ImportGenius data did not offer detailed descriptions of Shein’s products imported in bulk on container ships. Nonetheless, importing high-demand products in bulk through ocean freight is a cost-effective approach for Shein compared to air freight.
Despite these efforts, Shein continues to send the majority of its merchandise via air in individually addressed packages. These packages often enter the U.S. under the “de minimis” trade provision, which exempts them from tariffs. A U.S. House of Representatives committee report in June estimated that Shein, along with the China-founded e-tailer Temu, owned by PDD Holdings, collectively ships nearly 600,000 packages daily under this exemption. Shein did not comment on this estimate.
Shipping goods directly by air from China is a strategy that helps Shein prevent excess inventory buildup in warehouses. Prior to 2020, the ImportGenius data indicates that Shein had not imported clothing by ocean freight.
Furthermore, Shein has disclosed its plans to expand its U.S. storage capacity by enlarging its Indiana facility and establishing a new warehouse in Cherry Valley, California, which is expected to open in the coming months.
