SHEIN’s comprehensive strategy to improve inventory turnover efficiency and its practical guide
SHEIN, as a successful fast fashion e-commerce platform, performs well in terms of inventory turnover. It takes the flexible supply chain to the extreme and realizes a new trend of inventory turnover. This article will delve into SHEIN’s inventory rotation strategy, revealing its success factors and impact on the entire industry.
1. SHEIN’s inventory turnover strategy
(1) Flexible supply chain model
SHEIN has established close partnerships with suppliers to quickly adjust and optimize the supply chain to meet changes in market demand. This mechanism allows SHEIN to replenish hot-selling products in a timely manner, while quickly clearing out unsalable products through promotions, price reductions and other measures to maintain precise inventory control.
(2) Forward-looking data analysis and prediction model
Through big data and advanced analysis technology, SHEIN monitors and analyzes real-time sales data and uses predictive models to predict product demand trends. Shein makes full use of Internet big data for market research and trend prediction. By using tools such as Google, we can discover popular hot words and consumer interest points in different countries, providing reference for product design and inventory management. With these data and models, SHEIN can accurately predict the demand for goods, adjust and manage inventory in a timely manner, and avoid the problem of overstocking or insufficient inventory.
(3) Intelligent inventory management system
With the help of technologies such as cloud computing, big data analysis and artificial intelligence, SHEIN has established an intelligent inventory management system to realize real-time monitoring and analysis of inventory data. By configuring automated reminders and replenishment systems, using modern inventory management software or tools, set up automatic reminders and replenishment systems, and trigger automated replenishment processes based on sales and inventory levels to improve efficiency and reduce human errors.
2. Shein inventory table operation guide
For sellers on the Shein platform, accurately managing product inventory is the key to ensuring smooth business. The following are the steps for using the Shein inventory table for inventory management:
(1) Log in to the Shein seller platform and enter the management backend
Find and click “Inventory Management” or a similar option to enter the Shein inventory page.
(2) Update inventory quantity
In the inventory table, you can view the inventory information of all products on sale. You can search and filter by keywords such as product number and name to quickly find the products that need operation. Click the edit button in the row of the target product to modify the inventory quantity of the product to ensure it is consistent with the actual inventory.
(3) Mark products as sold out or removed from shelves
If a product is completely sold out, you can choose to mark it as sold out to prevent customers from placing further orders. If a product is temporarily unavailable or no longer available for sale, you can choose to delist it and remove it from the site.
(4) Batch import and export
You can use the import function to quickly import large quantities of product inventory information, or you can use the export function to save the inventory information as an Excel file.
(5) Set inventory warning line
Set an inventory warning line based on historical sales data and market demand. Once the inventory quantity falls below this value, replenish the inventory in a timely manner.
(6) Regular inventory count
Conduct inventory regularly, check whether the actual inventory is consistent with the system records, and make adjustments for discrepancies.
(7) Sales data analysis
Combined with sales data analysis, understand sales trends and popular products in order to properly plan inventory and replenishment strategies.
(8) Multi-channel inventory synchronization
If the same product is also sold on other platforms, ensure that the inventory information on each channel is synchronized in real time to avoid oversold or out-of-stock situations.
(9) Regularly clean up unsalable goods
Regularly evaluate the sales of goods, clear out unsalable goods in a timely manner, release inventory space, and reduce the risk of inventory backlog.
3. Competitive advantage brought by Shein’s inventory turnover capability
SHEIN’s excellent inventory turnover capabilities enable it to achieve agility and flexibility in the supply chain. By quickly obtaining information on market demand and trends, SHEIN can quickly adjust replenishment plans, supplier cooperation and logistics arrangements to meet consumer demand and reduce the risk of inventory backlog. This enables SHEIN to maintain efficient operation of the supply chain and respond quickly to market changes.
Through reasonable inventory management and optimization strategies, sellers can improve sales efficiency and achieve better business development and profit growth. SHEIN has successfully established competitive barriers in the fast fashion e-commerce field with its flexible supply chain, ultra-fast new arrival speed, high cost performance and optimized inventory turnover rate. The success of its inventory turnover strategy demonstrates SHEIN’s sensitivity and flexibility to market demand, providing consumers with diversified, affordable fashion products. In the future, SHEIN will continue to optimize its inventory management and supply chain system, further improve inventory turnover efficiency, and consolidate its leading position in the e-commerce industry.