Shein has tapped Flexport as its preferred logistics partner for its U.S. marketplace, the companies announced last week.
Through the partnership, Flexport can better handle U.S. logistics needs — such as inventory management and order fulfillment — for merchants selling on the fast-fashion giant's marketplace.
More specifically, the arrangement allows sellers to integrate their Shein storefront with Flexport's Seller Portal. Inventory can be synced between Shein and Flexport, and Shein orders can trigger shipping and logistics processes with Flexport.
"Integration means less time spent on data entry and management," according to a LinkedIn post from Shein.
With the addition of Shein, the Flexport Seller Portal is now integrated with more than 30 e-commerce and wholesale channels, including Amazon, Walmart and Shopify, a spokesperson said in an emailed statement to Supply Chain Dive. The freight forwarder became Shopify's official logistics partner last year and has since rolled out discounts for Shopify merchants to use its fulfillment services.
“We’re thrilled to continue to expand our omnichannel offerings to help break down barriers for merchants and make it easy for them to seamlessly sell in more places without increasing the complexity of their logistics,” the spokesperson said.
The Shein integration could help Flexport capture more volume tied to the recent cross-border e-commerce boom bringing a surge of low-cost goods from Asia into the U.S. On its website, Flexport touted Shein as "one of the fastest-growing shopping apps in the history of online shopping."
However, RMW Commerce Consulting Founder and CEO Rick Watson said joining Shein's marketplace is a tough sell for brands amid controversies such as forced labor concerns and allegations of intellectual property theft. That could limit any potential volume gains on Flexport's side.
“As I've said in the past few years, logistics is a game of volume,” Watson said in a LinkedIn post. “Where is the volume coming from here? Which large brands are racing to join Shein? And even if I am wrong about all of this, is this still a good idea long-term beyond a quick cash-grab?”