Deep Dives

Western Brands on Shein

Western Brands Unknowingly Flood Shein: A New FrontieR in Unauthorized Sales Western luxury and sports brands are facing an unexpected dilemma as their products appear on Shein, the fast-fashion giant known for low prices and questionable sourcing. The likes of Adidas, Puma, Nike, Ray-Ban, and Calvin Klein are being sold on the Chinese platform—at deep discounts and with shoddy product listings—without the brands’ consent. With the platform expanding its reach across Europe, from Germany to the UK, the question of where these products come from and how they end up on Shein is becoming more pressing. A Surge of Branded Goods on Shein’s Marketplace In recent weeks, items from Adidas and Puma have been spotted on Shein’s European sites, selling at prices far below what shoppers would find on official brand stores or authorized retailers. The Adidas Samba sneaker, for instance, is available for as little as €62.29 on Shein Germany, while the same model retails for €120 on Adidas’s own site. And this is just the beginning. Puma, alarmed by these developments, has hinted at potential legal action, while Adidas has issued a public statement clarifying that it does not permit its products to be sold on Shein. Despite this, Shein’s marketplace continues to offer these brands, and it’s not just in Germany—Shein Switzerland, France, Spain, Italy, and the UK are all showing similar trends. Digging Deeper: Our Investigation into Shein Germany and Switzerland At Marketplace Universe, we took a closer look at Shein’s German and Swiss platforms to understand the scale and variety of the branded products being sold. The results were revealing—and troubling. In Germany, the listings are scattered and inconsistent. High-end brands like Swarovski appear, but with poorly rendered product images and incomplete descriptions, making it hard to determine authenticity or product quality. The Adidas Samba, for example, is misnamed as “Adidas Classic Boots,” a title that does nothing to assure buyers of its authenticity. Similarly, Ray-Ban sunglasses are sold by a third-party vendor with minimal transparency about who is behind the listing. In Switzerland, things get even more interesting. The Adidas section here is larger, featuring items like the Argentina national soccer jersey, though some items bear labels indicating Chinese origins, raising red flags about potential gray market involvement. Nike products, sold under the guise of third-party stores like “Sports Pavilion,” seem to follow a similar pattern, with customer reviews confirming that these items are likely sourced outside official European channels. Yet, none of these products reflect the latest seasonal offerings. Instead, they tend to be basic, evergreen models that never go out of stock, reinforcing the notion that Shein may be scooping up overstock or excess inventory. Shein’s Expanding Reach Across Europe Our research into Shein’s platforms in France and the UK revealed a large presence of Western-branded accessories. On Shein UK, we found 27 Michael Kors bags, all heavily discounted, with price reductions of up to 69%. This suggests a significant influx of luxury goods at prices far below their typical retail cost. Meanwhile, on Shein France, the accessory brand Coach was widely available, with several hundred Coach products listed, offering a broad selection of bags, wallets, and other items. Despite the sizable assortment of luxury accessories, the overall trend on Shein remains the same: poor product descriptions, vague or minimal details, and inconsistent presentation. Whether browsing high-end bags in the UK or Coach accessories in France, the listings often lack the quality you’d expect from these renowned brands, and many products seem to be part of discounted or fragmented collections rather than current-season stock. Where Is Shein Getting These Products? The big question remains: how did these branded goods find their way onto Shein in the first place? The brands themselves are certainly not selling directly to the platform, but that leaves several possible avenues for how these products are sourced. One likely explanation is overstock. Fashion is a highly seasonal business, and out-of-season products often end up being sold off to secondary markets in bulk. The items available on Shein tend to be classic, “never out of stock” pieces—think of the iconic Adidas Samba, not a limited-edition or seasonal design. These overproduced items are often sold at a steep discount to international buyers. Another possible source is the gray market. When products are sold in large quantities, especially through wholesalers, they sometimes “disappear” into unofficial distribution channels. In some cases, retailers or distributors sell excess inventory to foreign markets, where the products may eventually end up on Shein through resellers. There’s also the possibility of B-goods or outlet-grade products—those that don’t meet the brand’s standard for full-price sale but are still authentic. These are sometimes made in bulk specifically for outlets or discount retailers, offering an explanation for the lower prices and varying quality found on Shein. Lastly, Shein’s marketplace model, which allows third-party sellers to offer branded goods, may be the key. It’s possible that authorized distributors of Adidas, Puma, and other brands are reselling stock through Shein, or that Shein is sourcing from resellers in markets like Asia or Eastern Europe. What can Brands do? The question of how Shein is sourcing these products is likely to have many answers, each one reflecting the complexities of today’s global supply chain. Our research into Shein Germany and Switzerland suggests that Shein’s stock is a mix of overstock, gray market goods, and items likely bought from third-party distributors. The products on Shein are rarely current-season, and they’re often heavily discounted and fragmented, like something you’d find in an outlet store rather than a full retail collection. What’s particularly striking is how inconsistent the listings are across countries. Shein Switzerland, France and Spain, for example, features a much wider range of fashion, accessories and sportswear than Shein Germany, suggesting that some countries may be easier entry points for unauthorized goods. Meanwhile, Shein Germany is dominated by jewelry and beauty products, with less of a focus on fashion and sportswear. For brands, the first step in solving this problem is to start

Amazon Accelerate 2024

Major Innovations in AI, Social Commerce, and Supply Chain Every year, Amazon Accelerate sets the stage for the latest trends and innovations for the Amazon landscape, and 2024 was no exception. Held in Seattle, the event draws sellers and business leaders eager to learn how Amazon’s new tools can help them succeed in a rapidly changing retail environment. This year, the focus was on AI-powered solutions and new tools for social commerce and supply chain management, offering sellers a glimpse of how Amazon plans to shape the future of online selling. 1. Project Amelia: AI-Powered Seller Assistant One of the key announcements at Amazon Accelerate 2024 was Project Amelia, an AI-powered personal assistant for sellers. Currently in beta for US sellers, Project Amelia is designed to provide personalized insights, business metrics, and proactive solutions. By integrating data across Seller Central, it enables sellers to ask specific questions like “How is my business performing?” and receive real-time answers based on sales trends, inventory, and performance metrics. Project Amelia also offers the potential for proactive issue resolution, with future updates expected to allow the AI to identify problems and take corrective actions on behalf of sellers. Amazon has plans to expand this AI assistant to international markets later this year, marking a significant shift in how sellers will manage their businesses on the platform. 2. Generative AI for Product Listings and Content Creation Another major focus of the conference was Amazon’s expansion of Generative AI capabilities for product listings. Amazon’s AI tools have already been used by over 400,000 sellers globally to streamline the process of creating product listings. With these tools, sellers can input minimal information—such as a product description, URL, or image—and Amazon’s AI will generate comprehensive product titles, bullet points, and descriptions. At Accelerate 2024, Amazon announced that it will soon offer bulk AI-generated listings, enabling sellers to upload a spreadsheet with basic product details and have AI create multiple listings at once. This is designed to speed up the listing process and ensure product information is optimized for customer engagement. In addition to product listings, Amazon has expanded its A+ Content features, which allow brands to create rich, visual product detail pages. The introduction of AI-generated A+ Content will automate the creation of image carousels, comparison charts, and lifestyle imagery, helping sellers build more engaging product pages without extensive in-house resources. 3. Expanding Social Commerce with Buy with Prime Amazon continues to strengthen its Buy with Prime (BWP) program, with new partnerships aimed at integrating the service across major social platforms. BWP now allows sellers to display Prime badges—indicating fast and free shipping—on Google Ads and TikTok listings. Early tests show that adding the Prime badge to social commerce listings resulted in a 63% increase in click-through rates. Additionally, by 2025, PayPal will become a checkout option for Buy with Prime, allowing customers to link their Amazon and PayPal accounts for a more seamless checkout experience. 4. Personalizing Product Recommendations Amazon is also using Generative AI to improve product recommendations and descriptions. Based on customer browsing and purchase history, the platform can personalize product descriptions and recommendations, making them more relevant to individual customers. For example, if a customer frequently searches for gluten-free products, the AI may add the term “gluten-free” to relevant product descriptions, enhancing the shopping experience by presenting customers with more tailored options. This personalization is especially impactful on mobile devices, where screen space is limited, helping to match the right products with the right customers more effectively. 5. AI-Powered Video Ads As part of its broader AI strategy, Amazon introduced a new Video Generator tool that enables sellers to create AI-generated video ads using only a product image. This tool automatically creates videos showcasing a product’s features, providing sellers with a cost-effective way to engage customers through rich media content. The Video Generator tool leverages Amazon’s retail insights to produce customized, visually appealing ads in a matter of minutes. This new feature lowers the barrier for video content creation, making it easier for sellers to add video marketing to their advertising strategy. 6. Supply Chain Innovations and Faster Fulfillment Amazon also announced improvements to its supply chain and fulfillment services. Amazon Warehousing & Distribution (AWD) now accepts shoes and expirable goods, with plans to extend eligibility to heavy and bulky items by 2025. Additionally, Amazon reduced the delivery time for its Multi-Channel Fulfillment (MCF) service from 5 to 3 days, improving delivery speeds at no additional cost. These updates aim to streamline seller operations, reduce costs, and improve inventory management. AWD’s enhanced replenishment algorithms allow sellers to optimize stock levels and maintain higher in-stock rates, leading to more consistent customer satisfaction. 7. Enhanced Seller Support and Automation Amazon also introduced new features to improve seller support. Live Chat Support is now available to US sellers, providing dedicated assistance for resolving issues in real-time. This live chat support will be expanded to cover more complex issues in the future. Additionally, Amazon has rolled out a system for automated reimbursements for lost inventory at fulfillment centers. This new feature will automatically track and compensate sellers for missing inventory, reducing the need for manual claims. Conclusion Amazon Accelerate 2024 showcased several new innovations, particularly in Generative AI and social commerce, aimed at enhancing the seller experience and improving operational efficiency. While many of these tools are initially launching for US sellers, Amazon plans to expand them to international markets, including Europe, in the near future. The advancements in AI-driven product listings, personalized recommendations, and supply chain improvements reflect Amazon’s commitment to streamlining e-commerce for both sellers and customers.

Amazon Vendor Program massive clean-up

Amazon Vendor Program Shake-Up: What Brands Need to Know

Amazon’s big vendor clean up Many brands selling on Amazon are finding a nasty surprise in their inboxes these days: termination notices from the e-commerce giant, signaling an abrupt end to long-standing vendor relationships. Amazon’s email to affected brands reads, “We’ve made the decision to stop sourcing products from your company as part of our regular review of product offerings, and a strategic realignment to optimize our operations and better serve our customers.” The termination is effective as of November 9, 2024, with Amazon making it clear that, “we won’t enter into any new agreements, or extend current ones, beyond this termination date.” This decision has hit smaller brands particularly hard, many of which have relied on Amazon’s Vendor Central (1P) program as a key sales channel. In its email, Amazon suggests these brands transition to the Seller Central (3P) platform if they wish to continue selling on the marketplace: “If you’d like to continue selling our products on Amazon, we welcome you to list your items as an independent seller.” The timing of this decision—just weeks before the crucial holiday season—has left many small businesses scrambling to adapt. The accounts affected are primarily vendors with annual revenues below €2-5 million in the EU and $5-10 million in the U.S. These smaller businesses are now faced with the challenge of either migrating to Amazon’s third-party Seller Central platform or halting sales on Amazon altogether. The terminations are part of a broader “strategic realignment” aimed at improving Amazon’s efficiency by focusing on larger, enterprise-level vendors. A Strategic Shift Towards Efficiency Amazon’s decision to terminate small vendor accounts stems from its efforts to streamline operations and allocate resources more effectively. Martin Heubel, a German e-commerce consultant focussing on Amazon Vendor, estimates that thousands of smaller brands in Europe and the U.S. have been affected. “Amazon’s core motivation is to reduce resources in mass vendor management and manage brands under the self-service 3P Seller Central model,” Heubel explained. Gregor Leopold, founder of the German Amazon agency GlobalAMZ, agreed with this assessment but highlighted the logistical challenges facing smaller brands. “The setup of Seller Central is possible within two months, but companies new to the platform may face efficiency losses, especially in invoicing, logistics, and customer support,” Leopold noted. The Clock is Ticking: A Tight Window for Transition With the November 9 deadline looming, small and mid-sized brands are in a race against time to transition from Vendor Central to Seller Central, all while preparing for the holiday season. Heubel warned that most affected suppliers will struggle to make the switch in such a short timeframe: “Most affected suppliers will struggle to set up 3P accounts, brand registrations, and listings in such a short period.” He added that “Amazon’s timing is extremely unfavorable and could, in the worst case, mean the end for small and medium-sized businesses that have so far relied solely on Vendor Central.” Leopold emphasized the importance of keeping product content and marketing data organized and deciding quickly whether to transition to Seller Central or partner with a third-party distributor. “It’s important to keep product content optimized outside of Amazon, secure marketing data, and decide whether to move to Seller Central or sell through a partner,” he advised. What Can Affected Brands Do Now? For brands impacted by Amazon’s decision, the first step is to remain calm and make strategic decisions quickly. Heubel advises brands to file appeals through Vendor Central if possible or at least request an extension for the termination deadline. However, he cautioned that relying solely on appeals is not a reliable strategy, as success is not guaranteed.  Beyond appeals, affected businesses must evaluate their future on Amazon. Transitioning to Seller Central is inevitable for many, and brands should start preparing for this shift immediately. Leopold recommends analyzing the viability of Seller Central for each individual business and creating a step-by-step plan for the transition. “Stay calm but act fast. Ensure product content and marketing data are organized, and decide whether Seller Central or a partner is the right path,” he advised. For those transitioning to Seller Central, the process involves setting up new accounts, registering brands, and migrating product listings, which can take time. Leopold stressed the importance of having the right expertise in place to avoid common pitfalls. “The setup of Seller Central is possible within two months, but it requires careful planning and allocation of resources to avoid inefficiencies,” he said. Distributors may just be a temporary solution Some businesses may decide that Seller Central is not the best option and instead choose to work with a third-party distributor. This option allows brands to continue selling indirectly by partnering with a distributor who has an active Vendor Central account. But as Amazon has also already removed a load of distributors from the vendor program in 2023, and is likely to continue on this course, this might turn out to be more a temporary solution. “Working with a distributor can help bridge the gap for the holiday season, but ultimately, a direct Seller Central strategy may be more sustainable,” Leopold agrees. Heubel also emphasized the importance of securing all marketing and promotional data currently tied to Vendor Central accounts. This includes metrics, product rankings, and customer reviews, which are crucial for maintaining brand visibility during the transition to Seller Central. “Brands must ensure that all vendor-related data is preserved to maintain continuity,” Heubel said. Looking Forward: Vendor Central’s Future Despite these terminations, Vendor Central isn’t going away entirely. “Vendor Central will still be available for multinational suppliers, but Amazon is increasingly focusing on manufacturers with annual revenues of over €10 million,” Heubel explained. Smaller brands, on the other hand, need to diversify and reduce dependency on 1P to avoid being caught off-guard in future realignments. In conclusion, Amazon’s vendor strategy is becoming more selective, and smaller brands must adapt swiftly to this new reality. For many, this decision marks a critical juncture in their relationship with the platform. As Heubel put it, “Brands that aren’t

Retail Media Expert: “Marketing has not changed, it has just adapted”

Retail Media is the fastest growing advertising channel worldwide at the moment – and online-marketplaces are profiting strongly from this new trend. Marketplace Universe spoke with Retail Media expert Thomas Philip-Bashar, Product manager at eCommerce solution provider Channable, about current trends in this highly dynamic field.  Thomas, why is Retail Media advertising so attractive for marketeers at the moment, especially on marketplaces? Thomas Philip-Bashar: Retail Media is a new type of technology, but it’s not a new type of advertising style. If you think about how a high street shop would work, you will see almost the same concepts and behaviors. For example, having products on shelves at eye level better placed than competitors (Sponsored Products and Brands) or having advertising boards with eye-catching infographics (Sponsored Display). So while the behavior of how the consumers consume has switched to online, the marketing has not changed. It has merely adapted to the new digital store. So the reason the type of advertising is so attractive is because online retail media marketplaces are replicating the same old norms of marketing that consumers are used to when consuming on the high street. Amazon Advertising is the clear forerunner in terms of Retail Media. Where do the other marketplace stand? Who is the best runner-up in your opinion? Thomas: This depends completely on the regional market. For instance Walmart would be the closest to Amazon in the US. However, in Europe as a whole, second to Amazon would be the likes of eBay and Zalando. But in specific regions such as the Netherlands you will see that Bol is far ahead of Amazon. In terms of types of advertisement, most if not all marketplaces follow the route of the standard industry ad practice. Sponsored Products as the basic ad format and then they supplement that with Sponsored Brands/Display. A new type of ad is referred to as Off-site. These are ads on third party websites or domains. For example Amazon now allows for advertising on Prime and also Twitch. But in essence there is no best runner up when it comes to offering different or innovating ad types, only a runner up in terms of market share. What Retail media Advertisers want What trends are you currently observing in the retail media space on online marketplaces? Thomas: From an advertiser point of view, the trends we are seeing revolve around campaign set up and optimisation. Advertisers want to be able to set up campaigns for their products in bulk whilst minimizing the campaign count. After this there is a requirement to be able to streamline the performance review process. Advertisers want to achieve this via automation or campaign/product level insights that trigger or inform alterations to campaigns thus optimizing performance. More commonly we are also seeing the use of dayparting within campaign set ups to increase the efficiency of a campaigns budget. What role does AI and machine learning play in optimizing retail media campaigns on online marketplaces? Thomas: Currently machine learning is quite prevalent in the optimisation process of campaigns. Features such as Amazon recommendations and bidding changes are classic examples of this. The more the optimization process is accurately optimized by machine learning the more time will be saved on performance reviews. That is a key value to online advertisers and agencies. AI is something that I see becoming more influential over the next few years for keyword suggestions and campaign creations. Key Retail Media KPI’s focus on Profitability What are the key performance indicators (KPIs) that brands should focus on when evaluating the success of their retail media efforts? Thomas: Advertising Cost of Sales (ACoS) and Total Advertising Cost of Sales (TACoS) are two metrics our clients focus on most. However, it differs between advertisers and agencies. Some also focus on Ad spend, Clicks to Orders ratio or Click Through Rate (CTR). The values on these metrics vary between advertisers but some metrics have an industry average. For instance, an ACoS of approximately 30% or Return On Ad Spend (ROAS) by general rule of thumb having $4 in revenue for every $1 spent. Ultimately, advertisers want to focus on profit however, this is not always feasible due to unavailable/missing cost data from marketplaces. Therefore, ROAS and ACoS are really important metrics when it comes to monitoring and measuring campaign profit. Can you discuss any innovative or emerging retail media formats that brands should be aware of? Thomas: As mentioned previously I wouldn’t say there are any new inventions for advertising types that throw the cat amongst the pigeons when it comes to breaking away from the standard sponsored products, brands or display. However, there are cool things happening in supporting the creation of sponsored brands and display creatives. For example Amazon is now offering an AI image generator. It utilizes machine learning to create images and videos that are generated from text inputs within seconds. This can significantly reduce time spent on creative production and improve conversion rates.  Thanks for your insights!

Breuninger on Sale

German premium fashion retail chain and marketplace provider Breuninger is on sale. Several international competitors are interested.

Temu Opens Marketplace for EU sellers

This has been a long time coming: In March, Temu first invited sellers to their US platform, moving slightly away from their factory-to-consumer model to tentativley open towards a more traditional marketplace model. From then on, US based sellers can list their products on Temu, sending orders from their own warehouses. Now, Temu has brought this new approach to Europe.

Zalando and About You in Challenging Times

Looking back on the 2023/2024 financial year, it is clear that even industry leaders such as Zalando and About You were not immune to the general economic challenges that shook online retail. Both companies reported slight declines in sales, but showed a strategic focus on healthy growth. Profitability at Zalando and AboutYou is a necessity in today’s competitive environment.

Retail Media Night: The pros and cons of Retail Media

No new form of advertising has grown so quickly in the last 20 years: this year, global spending on retail media is likely to increase by 20 percent. The ongoing conflict between advertisers’ demands for detailed data and marketplaces’ control over it highlights the tensions in this rapidly evolving industry, signaling that retail media’s impact is still unfolding.

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