Ever Shopped on Shopee?
The new way to shop online in SEA
Shopee is a social -first, mobile centered shopping platform that closely rivals Zilingo & Lazada. Like Zilingo, the user experience is designed to closely emulate all the “social” channels that millennials are familiar with. As part of our series investigating new SEA marketplaces, we have researched Shopee to bring you all of the facts about this social shopping platform.
After launching in 2015 as a mobile-only platform, they quickly realized the need to also offer a desktop service to remain competitive. Shopee first launched in Singapore and it has quickly expanded to Thailand, Malaysia, Taiwan, Indonesia, Vietnam and the Philippines.
How does Shopee work?
Although the “social-selling” experience Shopee offers is a loose match to Lazada and Zilingo, their payment process offers peace of mind for the customer that is not usually given on other marketplaces. The seller sends the product and the buyer pays, but the funds are held in escrow until the buyer confirms they have received the product. For sellers, Shopee does not have a commission fee, however they make money by offering paid ads to anyone using their marketplace. They also have a partnership with Payoneer to ensure that payments are made quickly and securely.
Payoneer are an international payment platform that helps sellers and customers transfer money. They have a debit card powered by Mastercard but customers can also keep funds in their E-Wallet and transfer them to a bank account. One of the reasons many people turn to Payoneer is because they can offer seamless cross-border transactions.
What does 2019 hold for Shopee?
It looks like 2019 is going to be the year that Shopee starts to invest in advertising their platform. Over the Valentine’s Day period,Shopee Malaysia took a lighthearted swipe at Lazada with one of their adverts. They have also recently announced that they are going to release online tutorials for sellers. Not only does this mean that active sellers will be able to use more products, it also means that people who do not have a lot of ecommerce experience can have a go at selling on the marketplace.
What makes Shopee so different?
The social and mobile first aspect of Shopee is what sets it apart from most of its close competitors. They follow the format of using bright colours and aggregating deals on the homepage to entice customers. But one of the things that sets them aside so much from other marketplaces is the Shopee Guarantee and the fact they do not charge commission.
What are the risks of Shopee?
Like all the similar competitors, Shopee is plagued by a devastating counterfeit problem. Although Shopee claims to put measures in place to discourage counterfeit sellers, instances of it are still rife. It isn’t just the electrical items that are targeted but also Fashion brands like UGG are heavily counterfeited on Shopee.