Ecommerce Update: Amazon’s Apparel Success, Shein’s Flexport Alliance, and the Fight Against Fakes

In this week’s post, we’re diving into some major developments in online retail that are shaping the eCommerce landscape.

First up, we’ll explore how Amazon has regained its position as America’s most-shopped clothing and footwear retailer.

Then, we’ll look into Shein’s new partnership with Flexport for fulfillment services. Flexport, already a key player for merchants on Shopify and Walmart, will now extend its visibility and efficiency to the sellers Shein is working to onboard.

Lastly, we’ll review Amazon’s latest brand protection report, which highlights how the company identified, seized, and disposed of more than 7 million counterfeit products worldwide in 2023, ensuring these items didn’t harm customers or re-enter the retail supply chain.

Stay tuned as we unpack the details and what they mean for the future of eComm entrepreneurs. 🙌

Amazon Leads Again: 2024 Survey Shows Dominance in US Clothing and Footwear Market

Amazon has once again solidified its position as the leading clothing and footwear retailer in the United States, outpacing even the most formidable competitors like Walmart. This comes as no surprise, given the eComm giant’s relentless focus on customer satisfaction, efficient logistics, and competitive pricing strategies.

According to the latest US Consumer Survey, Amazon sold over $56 billion in clothing, footwear, and apparel accessories in 2023—over 70% more than its nearest competitor. For Amazon sellers, this presents a huge opportunity to leverage the platform’s vast customer base and consumer trust.

Amazon’s Resilience and Strategic Advantages

Despite the ongoing challenges in the apparel sector, including rising input costs, Amazon has demonstrated remarkable resilience. Its ability to maintain high shopper numbers in such a turbulent market highlights its superiority over traditional store-based retailers.

In a corporate blog post, Anand Kumar, Associate Director of Retail Research, emphasized the potential for subscription models like Amazon Prime to enhance customer loyalty and retention, driving overall sales growth. This model is a significant competitive advantage that other retail giants, such as Target, could learn from to boost their own customer engagement and sales.

Key Drivers for Amazon’s Apparel Success

One of the primary reasons consumers prefer Amazon for their apparel purchases is the platform’s emphasis on delivery cost and speed.

The survey revealed that over half of Amazon’s apparel shoppers prioritize lower delivery costs and faster delivery times over brand loyalty. This focus on logistical efficiency has increased the number of Prime memberships, despite recent hikes in fees.

This suggests that Amazon’s delivery advantages are a crucial factor in attracting and retaining customers, which means Prime-eligible products often benefit far beyond non-Prime items.

Changing Consumer Perceptions and Private Label Strategies

Interestingly, the survey also noted a shift in consumer perceptions regarding Amazon’s pricing.

In 2024, only 29.1% of consumers expected to pay less than full price on Amazon, a significant drop from 49.7% in 2018. This change indicates a movement away from viewing Amazon as a discount retailer. Concurrently, interest in Amazon’s private label offerings, such as Amazon Basics and Amazon Essentials, has fluctuated, with a major decline in 2024.

For sellers, this trend suggests they should focus on quality and value rather than just competing on price. The fluctuating interest in Amazon’s private label products also opens up opportunities for sellers to differentiate their brands and build customer loyalty.

By aligning with Amazon’s strengths in logistics and customer experience, and by adapting to evolving consumer preferences, sellers can enhance their competitiveness and drive growth on the platform.

Implications for Competing Retailers

Amazon’s comprehensive approach to retail, combining competitive pricing, vast product selection, and superior logistics, sets a high bar for other retailers.

Those unable to match Amazon’s diverse brand offerings, affordable and fast delivery, or user-friendly website functionality may struggle to compete. Competing retailers must consider investing in these areas to stay relevant.

Leveraging Amazon’s Strengths

The findings from the 2024 US Consumer Survey underscore the importance of aligning with Amazon’s strengths in delivery, convenience, and customer experience.

For Amazon sellers, this means focusing on efficient logistics, leveraging FBA for Prime eligibility, and prioritizing customer satisfaction. Additionally, with changing consumer perceptions and preferences, sellers should concentrate on building strong brands and offering unique products to stand out from both competitors and Amazon’s own private label products.

By staying agile and responsive to these insights, sellers can maximize their potential in Amazon’s thriving apparel and footwear market.

Shein US Partners with Flexport for Logistics

Just as consumers are starting to see Amazon as an online fashion store destination, Shein, the fast-fashion powerhouse, is making strategic moves to strengthen its foothold in the US marketplace by partnering with Flexport for fulfillment services.

Recently announced on LinkedIn, this partnership aims to enhance delivery speed and efficiency, crucial factors for competing in the cut-throat eCommerce industry.

The collaboration with Flexport, a well-established logistics provider known for its integrations with Shopify and Walmart, marks a significant step for Shein. This partnership is designed to address some of the challenges Shein has faced in the country, including its stalled IPO and difficulties in attracting American marketplace sellers.

By teaming up with Flexport, Shein can offer its sellers a familiar and trusted logistics solution, potentially increasing seller confidence and participation.

Flexport’s role in Shein’s marketplace will streamline the fulfillment process, making it more efficient and reliable. For instance, orders placed on Shein’s marketplace will automatically initiate shipping and logistics processes through Flexport, promising seamless inventory management and sales operations.

This integration is expected to improve delivery times and overall customer satisfaction, which are critical factors for success in the fast-paced eCommerce environment.

But Shein is not stopping at Flexport. The company has also announced a partnership with ShipStation, another logistics provider known for its extensive integrations with major ecommerce platforms like eBay, Amazon, and Shopify.

This move ensures that Shein’s marketplace sellers can benefit from faster fulfillment, multiple shipping carrier options, and preferential rates, increasing the overall efficiency and cost-effectiveness of their operations.

Delivery Speeds that Could Rival Amazon

For consumers, these partnerships mean quicker and more reliable deliveries, which can significantly enhance the shopping experience on Shein. The improved logistics capabilities can help the company maintain high customer satisfaction levels and compete effectively with other fast-fashion and general merchandise platforms like Temu – which has taken a different approach by partnering with Chinese logistics companies WinIt and Easy Export.

For sellers, the implications are profound. The Shein / Flexport partnership offers a robust and reliable logistics framework, making it easier for sellers to scale their operations and manage their supply chains efficiently.

This could attract more US-based sellers to Shein’s marketplace, knowing that they have access to a logistics partner that is already trusted and widely used within the industry. Additionally, the integration with ShipStation provides sellers with more flexibility and choice in shipping options, further enhancing their ability to meet customer demands promptly.

In an industry where delivery speed and efficiency are paramount, Shein’s strategic partnerships position it well to enhance its market share and seller base in the US. By playing to the strengths of established logistics providers like Flexport and ShipStation, Shein can offer a compelling proposition to both consumers and sellers, driving growth and reinforcing its presence in the US market.

Amazon’s 2023 Brand Protection Report: Seller Reactions and the Realities of Counterfeit Prevention

Amazon’s Brand Protection Report for 2023 highlights significant strides in ensuring the authenticity of products and deterring bad actors. These include:

Amazon’s robust seller verification process has dramatically reduced the number of bad actor attempts to create new selling accounts, from 6 million in 2020 to just 700,000 in 2023.
Amazon’s proactive measures have intercepted over 99% of suspected infringing listings before brands needed to identify and report them.
Since 2020, the retailer has achieved a more than 30% reduction in infringement notices, demonstrating the success of its automated brand protections and collaboration with brands enrolled in Brand Registry.
The Counterfeit Crimes Unit, established in 2020, has pursued over 21,000 bad actors through litigation and criminal referrals. In 2023 alone, Amazon identified, seized, and disposed of more than 7 million counterfeit products worldwide.

For consumers, these initiatives mean greater assurance that the products they purchase on Amazon are authentic and safe.

For Amazon sellers, the strengthened brand protection measures may help create a more trustworthy and competitive marketplace. Sellers could benefit from Amazon’s rigorous vetting processes, which aid in eliminating fraudulent competition, and from enhanced consumer trust, drive sales growth.

However, seller reactions posted on the Seller Forum news page reveal a more nuanced and often critical perspective on the efficacy of these measures.

Redefining Counterfeits and Challenges in Seller Vetting

One of the key criticisms from sellers is an overly simplistic and misleading definition of “counterfeit,” causing, at time, legitimate sellers to be caught in the cross-hairs.

This issue is compounded by what sellers perceive as superficial vetting processes that may allow bad actors to re-enter the marketplace under new accounts. A veritable whack-a-mole situation until marketplace onboarding practices change.

Despite Amazon’s claims of advanced verification technologies, the lingering question remains: how many bad actors are truly stopped, and how effective are these measures in the long term?

Impact of Automated Filters and Notice of Infringement Reporting

Sellers express frustration with Amazon’s automated filters, which they feel erroneously flag legitimate listings. The term “valid” notices of infringement is contentious, with sellers considering that it may have actually become harder for them to report counterfeiters effectively.

One seller suggests that, more than a resource, Seller Support acts as a barrier to sellers reporting true instances of counterfeiting.

Counterfeit Enforcement and Buyer Fraud

A recurring theme in seller feedback is the perceived inefficiency in Amazon’s enforcement of counterfeit rules. Sellers recount instances where counterfeit listings reappear even after being reported, undermining the integrity of the platform.

Additionally, there is significant concern over buyer fraud, where unscrupulous customers purchase products, switch them out with knockoffs, and return them for refunds. Sellers feel inadequately protected against such abuses, with some suggesting that allowing sellers to block buyers by ZIP code could mitigate this issue.

The Reality Behind the Numbers

While Amazon touts its achievements in seizing counterfeit products and collaborating with law enforcement, sellers question the practical impact of these measures. They point out that high-profile cases and statistics often mask the daily struggles they face with counterfeiters and fraudulent buyers.

The report of stopping 7 million counterfeit items is seen as a surface-level solution that doesn’t address deeper, systemic issues within Amazon’s marketplace.

A Call for Better Support and Practical Solutions

Sellers are calling for more transparent and effective support from Amazon. Suggestions include clearer guidelines on counterfeit definitions, more robust seller education on compliance, and enhanced protection against buyer fraud. There is also a demand for Amazon to address internal issues, such as inconsistent enforcement of policies.

A Need for Real Change

While Amazon’s 2023 Brand Protection Report showcases efforts to combat counterfeits and support genuine sellers, the feedback from the seller community highlights significant gaps.

For Amazon to truly foster a secure and fair marketplace, it needs to address these concerns head-on, ensuring that its policies not only look good on paper but also translate into meaningful action and support for its sellers.

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Chelsea Cohen

Chelsea Cohen is an Amazon seller, speaker & consultant. An Amazon expert, her regular clients include 7 & 8-figure sellers. She has been featured on AM/PM Podcast, 7-Figure Sellers Summit, and the Prosper Show & Amazing Summit stages, among others.