So, what's the catch? 🧐
If you’re into fashion and follow social media trends, chances are you’ve seen SHEIN pop up on your screen. SHEIN seems to carry an endless amount of fashion trends, accessories, and so much more!
Moreover, they sell them at extremely low prices. Most items are under $30 and can be as cheap as $1.
So what’s the catch? Why is SHEIN so cheap? Well, today I’m going to deep dive into the inner workings of SHEIN to explain just that.
Don’t forget to check out my SHEIN review to get my honest opinion on their clothes and accessories. I also have a list of the best SHEIN finds, dresses, and summer dresses.
Disclosure: Vain Affair is reader-supported. When you buy through affiliate links on our website, we’ll make a small commission, without impacting your price. Thank you. Learn more.
In This Post ➜
- What Is SHEIN?
- 9 Reasons Why SHEIN Is So Cheap
- An Online Business Model
- Less Traditional Advertising & More Social Media Marketing
- Direct To Customer Business
- Profit Based On Large Volumes Sold
- Outsourcing Products At A Low-Cost
- Convenient Warehouse Locations
- Smaller Workforce
- Offers Enticing Deals
- Easy Free Returns
- Pros & Cons: Are SHEIN Products Worth It?
- Frequently Asked Questions
What Is SHEIN?
SHEIN is a global fashion and lifestyle e-retailer that sells a wide variety of fashion, home, and beauty products. This includes women’s clothing, lingerie, shoes, and accessories.
They also carry plus size clothing, men’s clothing, kid’s clothing, home goods, and beauty items. The variety of products that SHEIN carries is mind-blowing!
The company was founded in 2012 and has grown rapidly since then. They have over 10,000 employees and serve over 150 countries in less than a decade.
SHEIN primarily uses a digital-first model to connect with consumers directly on social media, online, and on their mobile devices. It is one of the most popular shopping apps today.
Related: 38 Best SHEIN Finds That You’ll Want To Buy Right Now + Ultimate Shopping Guide
9 Reasons Why SHEIN Is So Cheap
- An Online Business Model
SHEIN primarily focuses on their online business model. Their digital-first model means they focus on connecting with their customers on social media, online, and mobile devices.
They also focus on using cutting-edge technology to process their designs and sourcing to meet customer demands and fashion trends. This allows them to focus on improving efficiency on product production and delivery.
SHEIN uses a fully digital supply chain to quickly deliver products to customers around the world. This digital supply chain allows them to offer lots of trendy fashion styles and improve shipping times.
- Less Traditional Advertising & More Social Media Marketing
Instead of using traditional advertising methods, such as advertisements and tv commercials, they focus on social media marketing. This ranges from sponsoring influencers, social media ads, social media posts and more.
This tactic is very effective and one of the key factors that helped spread the word quickly and gain recognition.
- Direct To Customer Business
SHEIN sells and ships directly to the customer, which means they don’t have a third-party retailer that gets a cut of the profit for every sale they make.
Therefore, they make more profit, which in turn helps them grow and accelerate their production.
- Profit Based On Large Volumes Sold
SHEIN’s goal is to sell large volumes of clothing at inexpensive prices. Even if the prices are low, they still make a decent profit off of the volume of clothing sold! This is one of the major reasons why is SHEIN so cheap.
In fact, SHEIN drops over 1,000 new arrivals everyday. That just gives you a sense of how fast they are quickly releasing and selling clothes everyday.
- Outsourcing Products At A Low-Cost
SHEIN outsources their products from different regions around the world, which includes China and the United States.
They outsource and purchase directly from their third-party manufacturing partners. This means they use wholesale pricing, which helps reduce their overall expenses.
Lower expenses also helps them price their products at much lower prices than their competitors.
Check out their Supply Chain & Transparency Statement for the most updated information.
- Convenient Warehouse Locations
When SHEIN just started out, their warehouses were exclusively located in China. However, as they grew internationally, they now have warehouses around the world to keep up with the demand and improve shipping times.
For instance, they have a warehouse located in Los Angeles for customers in the United States. They also have warehouses located in Russia, Italy, Spain, Germany, Middle East, Australia, France, and Switzerland.
This allows them to ship products and packages from their main headquarters in China to local warehouses near you, which increases efficiency.
- Smaller Workforce
Since SHEIN focuses primarily on their digital-first business model, this means that they don’t need to spend as much on a larger workforce to manage physical stores.
This allows them to be more targeted and specific in hiring their workforce, which leads to a smaller workforce and less expenses.
- Offers Enticing Deals
Despite SHEIN’s ridiculously low prices, they still hold tons of sales and give out coupons. It’s very hard to resist if deals are stacked on deals!
In fact, right now they’re offering 15% off any order and no minimum when you sign up right now! Plus, you get even deeper discounts, depending on how much you order.
They also hold daily Flash Sales, which are limited-time events where promotional products are deeply discounted with limited quantities. You can only grab 5 per order, so grab something you like before it’s gone!
These Flash Sales help them quickly sell out items that have been sitting in their warehouse for too long and makes room for new items. Lots of quick sales helps SHEIN profit, which is why SHEIN continues to be so cheap.
If you have an account with SHEIN, you can also collect points. You can earn points by placing an order, reviewing a product you purchased, playing games, checking in, taking surveys, or participating in promotional events.
Every 100 points that you collect is equivalent to $1 and can be used to deduct the total price of an order.
SHEIN is always introducing new coupons and sales, so check their website, sign up for their newsletter, and download their mobile app for their most up-to-date deals.
- Easy Free Returns
SHEIN does offer free returns 35 days after the purchase date. The shipping is free for only the first return for any order.
If you want to make any additional returns on the order, there will be a $7.99 shipping fee that would be deducted from the refund. You can also use your own shipping method.
For the most up to date return information, please visit their returns page on SHEIN’s website.
Pros & Cons: Are SHEIN Products Worth It?
Now that you know why SHEIN is so cheap, is SHEIN worth it?
Here’s a quick breakdown of the pros and cons for shopping at this giant online fashion retailer to help you decide:
Pros:
- It’s great for anyone on a budget. They have all the styles you need. That includes basics, workwear, formal events, and the latest trendy styles. If you need something specific, there’s a high chance that SHEIN has it in stock at a very affordable price!
- There’s plenty of reviews on most of their products. I love the fact that there’s a large community of people willing to share their honest experience and even take pictures for reference.
- It saves you time too. You won’t have to go to a physical store, sift through racks of clothes, and wait at checkout. Everything is online and will be shipped directly to your doorstep.
- They carry a variety of products–not just women’s fashion! You can find men’s, kid’s, and plus size clothing. They even have home goods and beauty products.
- SHEIN also collaborates with indie fashion designers–allowing them to support emerging talent and us to shop their unique designs at budget-friendly prices.
- Their customer service is decent. The customer service term is efficient and friendly. Questions are usually answered promptly.
Cons:
- Don’t expect extremely high-quality clothing. Price usually indicates the quality of the piece. The fabric and construction may feel flimsy or thin. Always check the reviews to make sure you know you’re getting into! SHEIN does carry certain high-quality clothing lines, such as MOTF.
- SHEIN is fast fashion. They constantly chase trends and produce massive amounts of new clothing. If you’re going to purchase from them, try to be conscious of what you’re buying and reduce the urge to purchase impulsively!
SHEIN certainly has quite a few benefits. It’s great for those who are budget-conscious and looking for new fashion styles.
However, it’s good to be aware of the downsides of why SHEIN is so cheap too. In my opinion, SHEIN has many benefits and is a great place to shop for those on a budget–just avoid overconsumption!
Frequently Asked Questions About SHEIN
Where Is SHEIN Located In The USA?
SHEIN’s main headquarters and distribution warehouse is located in China. However, they also have a warehouse located in Los Angeles in the USA.
They ship their products from their warehouse located in China to the Los Angeles warehouse for customers in the USA.
How Does SHEIN Produce Their Clothes?
SHEIN works with over 6,000 suppliers, many of them small businesses, to create SHEIN branded products and they also source third-party items to sell on SHEIN.
These suppliers get operational and technology support to help them be more competitive and profitable. SHEIN also helps them grow their business with store and brand setup, access to new customers, and support for logistics.
Are The Working Conditions At SHEIN Safe?
SHEIN Responsible Sourcing evaluation system regularly conducts supplier audits. All their suppliers are graded accordingly and would be given a Zero Tolerance Violation, if they are found to violate their standards.
The Zero Tolerance Violation provides training to suppliers that have code violations to resolve the issues. Some of these violations include health and safety, forced labor, and underage labor violations.
If the supplier fails to remediate their violations within a 30-90 day time period, they are immediately terminated.
Check out their 2021 Sustainability and Social Impact Report for more information.
Is SHEIN Safe And Reliable?
Their rock bottom prices and extremely good deals are all real! SHEIN is a safe and reliable online retailer. Moreover, they’ve been operating since 2012.
As of 2022, they are now the world’s largest fashion retailer and valued at $100 billion as of April 2022’s funding round.
In my experience, they also have very responsive customer support, which is key to a reliable online retailer.
Should You Wash SHEIN Clothes Before Wearing?
Yes, you should wash your new SHEIN clothes before you wear them. This also applies to any new clothes that you purchase.
Fabrics made from synthetic fibers, such as polyester, have azo-aniline dyes. This can cause severe skin reactions to those that are allergic to them. Washing them will help remove the excess dye that can get on your skin or other clothes too.
Moreover, manufacturers may use a chemical called urea-formaldehyde to reduce wrinkles, prevent mildew, and enhance the texture. The same chemical can also cause rashes on your skin. Washing you clothes will help remove this chemical.
Are SHEIN Sizes True To Size?
SHEIN sizes tend to run smaller, so I would always check the sizing chart for each item just to make sure! The sizing tends to be inconsistent across products.
Always keep in mind the stretchiness of the fabric. This can affect the sizing too. In fact, SHEIN’s size chart will tell you the stretch amount, fit type, and body measurements.
Another great way to get a feel of the sizing is to read the reviews! SHEIN has a great community of consumers that are happy to share their thoughts of the sizing, which helps you make a more informed purchase!
I hope this gives your insight on why SHEIN is so cheap. SHEIN certainly has its perks and the pricing is very hard to resist.
It’s really up to you whether you want to invest in SHEIN fashion, but at least you’re an informed customer either way!
Disclosure: Vain Affair is reader-supported. When you buy through affiliate links on our website, we’ll make a small commission, without impacting your price. Thank you. Learn more.
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What do you think?