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Ahead of a closely watched IPO process, the Shein fulfillment and logistics outpost will expand its U.S. operations and employee headcount.

As Shein works toward a U.S. initial public offering and awaits approval for that IPO from the Chinese government, it still intends to push forward with U.S. expansion. On Thursday, the fast-fashion company announced plans for a new fulfillment and logistics facility to be located in the Seattle area.

Located in Bellevue, Wash., the new Shein outpost in the city’s Key Center will occupy 10,000 square feet, according to Shein’s announcement.

As of November 2023, Shein ranked as one of the three fastest-growing online merchandise companies in Asia by web sales, according to Digital Commerce 360’s Asia Database. Shein is also No. 2 in Digital Commerce 360’s Asia Database ranking ecommerce retailers in the region by online sales.

Shein’s fulfillment and logistics office near Seattle

“The U.S. is an important market for Shein, and we are thrilled to establish a presence in the Seattle area as we continue enhancing our fulfillment process and improving the customer experience,” said Andy Huang, head of U.S. fulfillment and logistics at Shein, in a statement. “This expansion underscores our commitment to efficiency across our operations, and we look forward to contributing to the local community and fostering innovation in the heart of the Pacific Northwest.”

Shein, which is officially headquartered in Singapore, hopes to shorten its delivery times in the U.S. with the new move. It has already moved aggressively into the fast-fashion market, announcing a deal in 2023 to acquire one-third of Sparc Group. That deal gave Shein a stake in Forever 21. As a result, Shein paved the way to list Forever 21 products alongside Shein’s own inventory.

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Jobs at the new Shein facility

The new Shein fulfillment and logistics location will be home to 50 workers, according to the company’s press release. It expects those positions to be filled by the end of 2024. To date, Shein counts 1,500 corporate and warehouse employees at its U.S. operations. Those jobs are located at existing offices in Los Angeles, San Diego, Philadelphia, Washington, D.C., and Whitestown, Ind., according to Shein.

IPO approval questions linger in China

Shein has faced questions from U.S. senators and other concerned parties over labor practices in its supply chain. Most recently, however, regulators in China appear to be holding up efforts for the company to go public.

Shein officially moved its headquarters to Singapore and does not collect revenue or sell to customers in China. Nevertheless, it engaged in talks with the Chinese government as an apparent safety measure to obtain approval for its IPO. Specifically, Shein is awaiting clearance from the Cyberspace Administration of China and China Securities Regulatory Commission, The Financial Times reported.

Currently, China’s sign-off on Shein’s IPO remains in question. The result could signal to other companies in the country whether regulators are open to new U.S. listings.

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