Meaghan Tobin

It's an online marketplace that sources from a network of thousands of Chinese factories. And instead of having specific collections for the time of year, they're just constantly creating thousands of different garments every day. And Shein responds essentially in real time to trends.

It's an online marketplace that sources from a network of thousands of Chinese factories. And instead of having specific collections for the time of year, they're just constantly creating thousands of different garments every day. And Shein responds essentially in real time to trends.

They have this proprietary system that allows them to place really small orders with really short turnaround times with their suppliers. That enables Shein to avoid the cost of maintaining a lot of inventory. And unlike Zara or H&M, who ship their clothes in bulk to warehouses in the United States, who then distribute it to shops, Shein mails their items directly to customers.

They have this proprietary system that allows them to place really small orders with really short turnaround times with their suppliers. That enables Shein to avoid the cost of maintaining a lot of inventory. And unlike Zara or H&M, who ship their clothes in bulk to warehouses in the United States, who then distribute it to shops, Shein mails their items directly to customers.

And what's interesting is that because of their proprietary system, they can see how things are selling on the app and quickly notify suppliers that they need to make more. So sometimes when you buy something on Shein, it might not actually even have been made yet.

And what's interesting is that because of their proprietary system, they can see how things are selling on the app and quickly notify suppliers that they need to make more. So sometimes when you buy something on Shein, it might not actually even have been made yet.

And so if all of a sudden everyone in your TikTok feed is wearing baggy cargo pants or lime green crop tops, immediately you can also see those being offered on Shein. And if more people start buying them, the platform can quickly ask more suppliers to keep making them. That enables them to offer a huge variety of products on their app for very little money.

And so if all of a sudden everyone in your TikTok feed is wearing baggy cargo pants or lime green crop tops, immediately you can also see those being offered on Shein. And if more people start buying them, the platform can quickly ask more suppliers to keep making them. That enables them to offer a huge variety of products on their app for very little money.

So instead of fast fashion, it's more like ultra fast fashion.

So instead of fast fashion, it's more like ultra fast fashion.

Totally. And Shein is not without its critics. There are all kinds of concerns about Shein and ultra-fast fashion. There are concerns about labor practices at some of the factories that supply for Shein. And of course, there are environmental concerns because millions of packages are being flown across the world every day.

Totally. And Shein is not without its critics. There are all kinds of concerns about Shein and ultra-fast fashion. There are concerns about labor practices at some of the factories that supply for Shein. And of course, there are environmental concerns because millions of packages are being flown across the world every day.

And because the prices are so low, it makes the clothes feel almost disposable.

And because the prices are so low, it makes the clothes feel almost disposable.

And in the United States, a lot of businesses were angry that Xi'an and other companies were using this loophole and not paying any taxes. They felt that was really undercutting their prices. Like, for example, Forever 21 partly blamed Xi'an and Timu and their use of the de minimis exemption when it filed for bankruptcy earlier this year. And all of that concern eventually reached the White House.

And in the United States, a lot of businesses were angry that Xi'an and other companies were using this loophole and not paying any taxes. They felt that was really undercutting their prices. Like, for example, Forever 21 partly blamed Xi'an and Timu and their use of the de minimis exemption when it filed for bankruptcy earlier this year. And all of that concern eventually reached the White House.

It absolutely plays into President Trump's narrative that particularly when it comes to trade, the playing field with China has not been even. And Trump also says the de minimis exemption was leading to fentanyl and the chemicals that are involved in making it coming into the U.S.

It absolutely plays into President Trump's narrative that particularly when it comes to trade, the playing field with China has not been even. And Trump also says the de minimis exemption was leading to fentanyl and the chemicals that are involved in making it coming into the U.S.

from China because he said drug traffickers were taking advantage of the limited checks on these packages to sneak illegal substances into the country. And all of this is why earlier this month he got rid of the loophole.

from China because he said drug traffickers were taking advantage of the limited checks on these packages to sneak illegal substances into the country. And all of this is why earlier this month he got rid of the loophole.