On the Shein platform, there are two main cooperation modes, namely the third-party seller model and the OBM fully managed supplier model. These two models have different appeals and pros and cons for companies that want to take root in overseas markets. This article will analyze these two cooperation modes in depth and explore the key strategies for steady development in overseas markets.
1. Third-party seller model: more autonomy
Shein’s third-party seller model allows other merchants (third-party sellers) to sell goods on the platform, and merchants can set their own prices. However, this cooperation model also requires merchants to have a certain sales volume and overseas public qualifications. Specific requirements include:
The turnover must reach 2 million
Third-party store data is required
Overseas public qualifications
Only products over 5 kilograms can be sold
Air transportation is used
2. Fully managed supplier model: low cost and high efficiency
The OBM fully managed supplier model (also known as OEM) is a full supply chain management model provided by the Shein platform. In this model, Shein is responsible for the entire process of design, production, sales and delivery, and merchants only need to provide goods. The advantages of this model are:
Low cost: no deposit, no deduction, just provide goods
Energy saving: no operation team and logistics pressure, just connect with buyers
Reducing logistics pressure: Shein supports cross-border logistics, warehousing and other matters, allowing suppliers to avoid logistics experience
3. The key to choosing a cooperation model
With the increasing competition in overseas markets, companies need to carefully weigh the pros and cons of choosing a cooperation model. Here are some important factors that companies may need to consider:
Economic cost: Compare the cost investment and expected benefits of the two models
Operational flexibility: Consider the actual situation of the company’s current resources and operation team
Cross-border logistics: Whether factors related to logistics have become a key obstacle to the development of the company
Brand influence: Evaluation of the impact of choosing a cooperation model on the brand
Whether it is hoped to collect more autonomy or seek low cost and high efficiency, companies need to conduct comprehensive thinking and analysis when choosing a cooperation model. The choice of cooperation model is crucial to the development of enterprises in overseas markets, so before making a decision, it is essential to conduct an in-depth evaluation of the development strategy of the enterprise.