Behind the global expansion of e-commerce, how does SHEIN build a global logistics fulfillment network to meet the needs of customers worldwide?

With its stylish yet affordable products, SHEIN has become a household name in fast fashion. However, what sets SHEIN apart globally is not only its competitive prices and wide product variety but also its excellent logistics and shipping strategies.

Handling approximately 880,000 orders daily, SHEIN’s fulfillment and delivery must be efficient, accurate, and scalable to meet global customer demand.

1. How SHEIN Builds Its Transportation and Fulfillment Network

SHEIN’s logistics mainly relies on strategic planning and wise partnerships. For a global e-commerce platform like SHEIN, every detail matters, from selecting warehousing locations to choosing the best shipping providers and managing inventory turnover using methods like FIFO (First In, First Out) or LIFO (Last In, First Out). Every stage, from order placement to final delivery, must be carefully managed to ensure a seamless logistics experience. The logistics process at SHEIN can be broken down as follows:

Order Placement: Customers browse SHEIN’s online catalog and place an order through their SHEIN account.

Order Processing: After an order is placed, SHEIN’s system processes it and uses inventory tools to check product availability. SHEIN mainly uses Just-in-Time (JIT) inventory management. If an item is out of stock, a small batch order is placed immediately to restock.

Fulfillment from Regional Warehouses in China: SHEIN collaborates with third-party logistics companies to store popular products in regional warehouses worldwide for faster delivery. SHEIN ships from multiple regional warehouses and international fulfillment centers depending on the product's stock location and the destination address. If an item is out of stock in local overseas warehouses, it is shipped directly from SHEIN’s factories in China.

Carrier Transportation: Once the order is prepared, the package is handed over to the logistics carrier. If the goods are from China’s warehouse, China Post is usually responsible for transportation.

Tracking Updates: SHEIN provides customers with tracking information to monitor the shipment’s progress. After dispatch, customers receive a tracking number that allows them to track their package status, including transportation progress and expected delivery time.

Final Destination Delivery: SHEIN partners with multiple logistics companies, including international giants like DHL, FedEx, and USPS, to ensure efficient last-mile delivery.

2. What are SHEIN's Shipping Models?

SHEIN’s logistics distribution network largely depends on cooperation between global and local carriers. For example, in the U.S., SHEIN often uses USPS for last-mile delivery, in the UK it mainly uses Yodel or Royal Mail, and in Canada, SHEIN primarily partners with UniUni. For some international express orders, logistics giants like DHL and FedEx play a crucial role due to their speed and reliability.

When it comes to delivery times, the main challenge for SHEIN when shipping directly from China is the long wait time. Today, consumers are more inclined than ever to expect fast delivery, and waiting one to two weeks for a product may be unacceptable. The best solution to this issue is to clearly communicate delivery time expectations to customers in advance.

Specifically, delivery times for SHEIN orders can vary due to several factors:

Shipping Method: SHEIN generally offers two main shipping options:

Standard Shipping: Delivers in 9-12 days to the U.S., 9-13 days to Canada, 8-9 days to the UK, and 7-10 days to Australia. It is affordable and reliable for those who can wait longer.

Express Shipping: Delivers in 7-9 days to the U.S., 6-9 days to Canada, 6-8 days to the UK, and 5-8 days to Australia. Express shipping typically arrives 2-4 days earlier than standard shipping.

Destination of the Order: Delivery times vary based on the destination country and its proximity to SHEIN’s warehouses. Orders sent to major cities or urban areas typically arrive faster than those sent to rural or remote areas.

Product Availability: If a product is out of stock or needs to be restocked, it may delay shipping, requiring additional time for replenishment or procurement.

Order Processing Time: Before dispatch, SHEIN usually needs 1-3 business days to process the order, including preparing, packing, and shipping the items.

Weather Conditions: Adverse weather events such as hurricanes, snowstorms, or floods may disrupt transportation networks and cause delays.

Holidays and Peak Seasons: During holidays and shopping peak seasons, due to high order volumes and congestion, delivery times may be extended.

3. What Are SHEIN's Shipping Fees?

SHEIN's shipping fees also depend on the destination of the order. For example, in the U.S., standard shipping costs $3.99, and shipping is free for orders over $29.

Express shipping costs $12.90, with free shipping for orders over $139. For Canada, express shipping costs 26 CAD, while for the UK, express shipping costs £9. During major sales events or holidays, SHEIN occasionally offers free shipping on all orders with no minimum requirement.

Additionally, customs duties and fees can add extra logistics costs. For example, in December 2024, SHEIN announced its participation in the U.S. Customs and Border Protection (CBP) Section 321 Data Pilot Program, which provides additional import information for packages heading to the U.S. With the U.S. reviewing and potentially reforming the "small value exemption" policy, compliance requirements will increase significantly, driving up operational costs. As more import information is required to meet stricter compliance standards, expenses related to logistics and taxes are expected to rise.

For example, in November 2024, Trump posted on Truth Social about his plans to impose an additional 10% tariff on Chinese imports, which could lead to stricter audits and higher duties for SHEIN’s products, potentially raising logistics costs. According to a report from the National Retail Federation (NRF), if additional tariffs are applied to all imports from China, clothing prices could rise by 12.5% to 20.6%.

SHEIN’s rapid global expansion undoubtedly faces many challenges, and the cost of cross-border e-commerce logistics is one of the most significant, especially concerning tariffs, shipping costs, and overseas warehousing. Although SHEIN reduces shipping time and costs through partnerships with several logistics giants, as market conditions and the global trade environment evolve, SHEIN will need to adapt its logistics strategy, reassess its supply chain layout, optimize inventory management, and even consider establishing more fulfillment centers. This would not only reduce the burden of tariffs but also improve local delivery efficiency and enhance the customer shopping experience.

Overall, by building an efficient and flexible logistics system, SHEIN connects production sources to end customers, meeting global consumer demand for fast fashion products while maintaining its competitive edge in the fierce e-commerce market. In the future, as global logistics patterns continue to change, SHEIN will continue to optimize its logistics and supply chain management to cope with the intensifying challenges of global e-commerce logistics competition.

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Official Account: Cross-border E-commerce Logistics Baixiaosheng