If you’re like me, you’ve probably been wondering why Shein is so cheap. I mean, some of their clothes are practically giveaways!
Well, after doing a little research, I’ve uncovered the reasons behind Shein’s low prices. If you’re interested, keep reading to find out why Shein is so cheap.
Why Is Shein So Cheap in 2023?
Shein’s goal is to be a low-cost retailer, and they base their profit on volume rather than margins in 2023. Most of Shein’s clothing is made in overseas factories, which cuts out the middleman. Additionally, Shein has low overheads as they operate primarily online. However, this means that some of their products are of lower quality.
Keep reading for 11 ways we found that allow Shein to offer affordable yet stylish products to consumers!
1. Fewer Intermediaries
Unlike most other retailers, Shein cuts out the middleman by working directly with factories.
This allows them to sell their products at a lower price.
2. Lower Overheads
Typically, Shein has low overheads as they operate primarily online.
Shein’s low overhead means they can keep prices competitive with their competitors.
Further, they don’t need to pay for expensive rent or electricity that traditional brick-and-mortar stores have to pay.
Since this saves them money every month, Shein can pass the savings on to shoppers!
3. Targeted Marketing Campaigns
In order to keep advertising costs down, Shein uses targeted marketing techniques tailored specifically for their typically young female customers.
Since targeted marketing finds consumers most likely to purchase their products, money isn’t wasted on costly advertising campaigns.
4. Fast Fashion
Likewise, Shein is a fast fashion brand that quickly produces new styles to meet the latest trends.
This allows them to keep their prices low as they don’t have the same development costs as traditional fashion brands.
5. Low-Quality Materials
Usually, Shein uses lower quality materials in their products, which helps keep prices down.
However, this also means that their products aren’t as durable and may not last as long as higher-quality items.
6. Cheap Labor
Similarly, Shein sources products from factories in countries where labor is cheaper.
This allows them to sell their products at a lower price, but it also brings about concerns that workers may not be paid fairly or work in safe conditions.
That being said, Shein promotes that their warehouses encourage fair & equitable work environments.
As such, suppliers must adhere to a code of conduct that complies with local labor guidelines, including policies against harassment and discrimination.
7. Unknown Brands
In general, Shein sells many unknown brands, which helps keep their prices low.
However, this also means that you may not be able to find the same quality as you would from a more well-known and established brand.
Many shoppers are attracted to Shein because they support small and medium-sized businesses.
Thousands of small and medium-sized companies can set up storefronts and offer their products on Shein.
These businesses benefit from the exposure, and Shein doesn’t have to pay the cost of buying from more expensive established brands.
Additionally, Shein is known for offering regular sales and discounts on their products, which helps keep prices down.
However, this also means you may have to wait for a sale to get the best price on an item.
For example, when a shopper signs on to Shein, they see a pop-up showing available coupon codes. Shoppers can often save up to 25% just by purchasing a specific dollar amount.
Furthermore, shoppers can earn Shein points that can be redeemed for money off orders simply by doing actions like:
- Daily website check-ins
- Reviewing Products
- Acknowledging the delivery of an order
- Watching live videos
- Participating in surveys
9. Free Shipping
Additionally, Shein offers free shipping on orders over a certain amount, which helps keep their prices down.
However, this also means that you may have to wait longer for your order to arrive, as it’s being shipped from overseas.
Additionally, Shein frequently offers promotions and coupons that can be redeemed for free shipping for valued customers.
10. They Have Overseas Factories
Because Shein’s factories are mainly located in China, it can take up to two weeks or longer for new products to reach their overseas warehouses.
Not to mention, these transits may be further impacted by customs in some locations. This delay may be frustrating if you’re looking for something specific, but it does help to keep prices down.
11. Broad Range of the Same Product
Finally, some shoppers may be intimidated by the sheer number and variety of similar options available on Shein.
Shein offers similar products at varying levels of quality for different price points. Since this variety is available, shoppers can easily find products they love that fit their price range.
Is Shein a Legit Company?
Shein is one of those companies made famous by Instagram and YouTube influencers for offering inexpensive clothing a la Baddies on a Budget.
As such, many of you may have concerns regarding how legit the company is. After review, we have mixed opinions.
First Shein is owned by the Nanjing, China-based Shein Group and has been operating since 2008. As of 2022, the company is worth approximately $1B.
According to past shoppers, Shein is a trustworthy internet retailer. However, shoppers commonly complain about sizing, low-quality products, and slow delivery times.
Therefore, although Shein is a legit e-commerce site, shoppers should be mindful before purchasing from them.
To know more, you can also read our posts on Shein scams, whether Shein has a store, and whether Shein delivers on weekends.
If you want to save money on your clothes shopping, Shein is a great option for cheap fashion.
In general, the company can keep prices low due to inexpensive labor, low overhead costs, and targeted marketing.
In addition, shoppers can take advantage of free shipping, regular sales, and discounts for even more savings. With affordable prices and a wide range of styles, you can find everything you need without breaking the bank.