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How Shein and TikTok Shop are becoming global brands

17 Nov 2023

Shein is targeting sellers who find signing up on the Amazon marketplace cumbersome due to long applications and waiting times. TikTok Shop is also expanding to American sellers now.

Chinese fashion portals Shein and TikTok Shop are targeting sellers in the US, especially Brazil and Mexico, who find signing up on bigger established portals like Amazon Marketplace challenging and tedious. With this move, these Chinese companies are inching towards becoming truly global brands. They can have international manufacturing and distribution without making any significant investment.

Sellers are eagerly accepting Shein’s offer to leverage its strong eCommerce reputation, streamlined supply chain, and innovative delivery methods at a cheaper price. Lower advertising costs and better markup schemes are pulling American sellers to TikTok Shop.

US Customs ‘de minimis’ rule allowed products below $800 to enter the country duty-free, with minimal customs checks. It was scrapped by a new Bill introduced in June 2023. Soon after, countries like Brazil imposed a 17% state tax on international shipments from cross-border sellers. However, Shein offered to cover this tax on purchases up to $50.

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