The news: Fast-fashion retailer Shein is considering evolving into an online marketplace that would allow other merchants to sell on its platform, per The Wall Street Journal.
The potential appeal of Shein’s platform: Other retailers could find Shein’s platform appealing given that it has a sizable customer base that is in the habit of regularly visiting its website and app.
Possible challenges: Competition is growing as a wide array of merchants, ranging from Macy’s to UK drugstore chain Boots, have launched online marketplaces this year alone. That’s not to mention the vast number of well-established platforms such as Amazon, Walmart, and AliExpress.
The big takeaway: Adding an online marketplace is a logical next step for Shein as doing so should help drive more revenues with relatively little lift.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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