The Southeast Asian E-Commerce market has dramatically evolved in recent years and will continue to grow in the following decade. Previously, Lazada dominated most E-Commerce markets, but more competitors have emerged throughout the years.
Shopee is clearly one of the largest and fastest growing marketplaces. Selling here is rather simple, and there are several advantages.
What exactly is Shopee?
Shopee was launched in Singapore in 2015 and has developed rapidly since then. It is currently one of Southeast Asia’s largest E-Commerce marketplaces, competing with Lazada to become the region’s number one E-Commerce website.
In fact, in certain Southeast Asian nations, it has eclipsed Lazada in terms of active users and mobile app downloads.
That is not an easy feat given that Lazada is owned by Alibaba Group, is backed by billions of dollars, and was founded several years ago.
Shopee was able to develop one of the region’s most recognisable brand names by removing commissions and listing fees from sellers. However, this will certainly alter in the future in order for Shopee to generate more revenue.
Shopee began as a C2C website.
It is worth noting that Shopee began as a C2C website and eventually grew into a combination of C2C and B2C. In comparison, it is an asset-light website, and as previously said, sellers are not charged any commissions.
Another significant distinction between Shopee and Lazada is that its parent firm, Sea Group, is headquartered in Singapore. Lazada, is owned by the Chinese conglomerate Alibaba Group.
As a result, you’ll note that Lazada is more China-focused, with the vast bulk of products shipped directly from merchants in (Southern) China.
Nonetheless, Tencent, which is one of China’s largest corporations and owns 20% of Jingdong (JD), also owns nearly 40% of Shopee.
It is clear that Alibaba and Tencent are not only fighting an E-Commerce battle within China’s borders, but are also attempting to capture as many market shares throughout Southeast Asia as possible.
In which countries Shopee is available?
Shopee began in a few countries but is currently available in the majority of ASEAN countries, Taiwan, and Korea:
- Singapur (Shopee.sg)
- Malay Peninsula (Shopee.com.my)
- Thailand (Thailand) (Shopee.co.th)
- Vietnam’s (Shopee.vn)
- Indonesian (Shopee.co.id)
- The Philippines (Shopee.ph)
- Taiwanese (Shopee.tw)
- Korea (shopee.kr)
Selling cross-border on Shopee will provide you access to some of Asia’s most developed, as well as some of its fastest developing, countries.
How popular is Shopee in Asia?
As previously said, Lazada used to dominate the Southeast Asian E-Commerce sector a few years ago, but there have been significant changes since then. A number of new platforms have emerged, with the following platforms receiving the most visits by nations in the first quarter of 2019:
- 11th Street
Why should I list my products on Shopee?
Shopee is one of the largest E-Commerce platforms in Southeast Asia, which is also one of the world’s fastest expanding markets. The website has substantial financial backing and is expected to be a dominant participant in the coming years.
I’d also like to point out that selling on Shopee does not preclude you from selling on Lazada or any other website. However, it may make sense to begin slowly, with one website at a time.
Also Read: How to increase sales on Poshmark
What are the advantages of selling on Shopee?
To begin with, it is unusual in that merchants do not pay any commissions to the platform, which is rather wonderful.
When compared to Lazada, where you must pay a fee of 2% – 8% on each sale. Furthermore, vendors and buyers can benefit from free shipping, albeit restrictions vary by country.
Does this imply that Shopee does not charge any fees? No.
Shopee makes money through paid advertising provided to sellers on the platform. Furthermore, they have begun to charge a transaction fee of 1.5%.
However, this is negligible in comparison to the fees paid on Lazada and other marketplaces.
How do I receive payment on Shopee?
Payment methods differ by country. Buyers in Singapor & Thailand, for example, can only pay by debit card, credit card, or bank transfer. None of these countries accept Cash on Delivery.
Customers in the Philippines and Taiwan, on the other hand, can select from the following payment options:
• Transfer using online banking
• ATM transaction
• Payment using credit card
• Payment using debit card
• Over-the-counter transactions
• Pay on Delivery (COD)
So, how can sellers get their money out of these countries?
Cross-border sellers can withdraw funds in two ways: by bank transfer or by linking the Shopee shop with Payoneer, as outlined in my separate post regarding Lazada payment methods.
Payments from Shopee to Payoneer are typically made bi-weekly and in the beginning and middle of each month.
How can I sign up for Payoneer on Shopee?
Payoneer registration is simple, and the stages are as follows:
• Sign in to your Shopee account and select “My Wallet.”
• Click “Register” to go to Payoneer’s website.
• Complete the Registration Form.
• If you already have a Payoneer account, select “I have Payoneer.”
• Verify that your Shopee store displays Payoneer as “Activated.”
• Sign in to Payoneer and enter your bank account information.
Shopee fulfilment and shipment management
Selling across continents necessitates the use of a solid fulfilment and shipping system. When it comes to selling on Shopee, there are two options:
• Using Shopee’s own service – Shopee Fulfillment (FBS)
• Collaborate with a third-party fulfilment centre
a. Shopee Fulfillment
Top brands, wholesalers, and important sellers with huge sales volumes but no fulfilment capabilities can use Fulfilled By Shopee (FBS). As a result, not everyone is eligible to participate in the programme, and acceptance is by invitation only.
Many sellers like FBS because Shopee handles everything from order incoming, quality inspection, storage, pick & pack, shipment, returns, and refunds.
However, due to the aforementioned constraints, you frequently need to manage fulfilment and shipping on your own, at least at first.
Similarly : How to Sell on Amazon from Pakistan 7 Solid Tips
This is in contrast to Lazada, where you are almost obliged to use their own in-house delivery solution, Fulfillment By Lazada, presently (FBL).
b. Fulfillment of ASEAN
If you are unable to use Shopee’s fulfilment services, you can manage your fulfilment operations with the assistance of a third party. Easyship, a well-established fulfilment company based in Hong Kong, is one example.
There are numerous established fulfilment facilities around Southeast Asia that can assist you in successfully selling your products on various marketplaces such as Shopee.
I’ve included some frequently asked questions and my responses below. If you have any further queries, please write us an email or leave a comment below!
How does Shopee generate revenue?
As previously stated, Shopee generates revenue from seller advertising and transaction fees.
Is selling on Shopee free?
Unless you wish to be listed on Shopee Mall, selling on Shopee is free. Then you must pay a USD 315 registration charge to the ACRA (Accounting and Corporate Regulatory Authority) in Singapore.
How can you become a Shopee recommended seller?
Only Preferred Sellers sell genuine quality products at competitive pricing and have high seller ratings and customer satisfaction.
It is by invitation only, and you must meet the following requirements:
• Monthly new orders = 75 minimum
• Minimum of 35 unique purchasers per month
• Minimum cumulative chat response rate = 70%
• Shop rating (total) = Min. 4.6
• In the current quarter, penalty points equal zero
• Products = 100% genuine, no counterfeits
• 95% ready stock
In addition to the aforementioned requirements, you must comply with Shopee’s requirements and adhere to the rules. Keep in mind that Shopee teams choose Preferred Sellers and strictly enforce the criteria.
Can I do dropshipping on Shopee?
Shopee does not officially support or encourage drop shipping.
You can still dropship products with the help of several service providers.
Is Lazada the same firm as Shopee?
No, Lazada is a subsidiary of Alibaba Group, which is based in Hangzhou, China. Shopee, on the other hand, is owned by the Singapore-based Sea Group.
Is Shopee a C2C or B2C site?
Shopee is a cross between C2C and B2C. Previously, it was primarily used for C2C transactions, but it has expanded into a B2C platform as well.
How can I obtain Shopee free shipping?
You can qualify for free shipping by providing a valid Pickup Address. Within 7 days, you will receive a notification in the app outlining how to activate Free Shipping.
The clients must then:
• Select Free Shipping. To obtain Free Shipping Vouchers, click ‘Get Voucher.’
• Click ‘View Voucher’ to be taken to ‘My Vouchers,’ where you can view the claimed Free Shipping Vouchers.
• You can access all of your stored free shipping vouchers under ‘My Vouchers.’
What are the Shopee forbidden items?
It varies depending on the country in which the products are sold.
Products that comply with a country’s laws and governmental bodies are permitted to be marketed. In general, you cannot sell the following items in any of the countries:
• Wildlife and animal products (including, without limitation, wild animals)
• Antiquities and artefacts
• Cosmetics used
• Forgery of cash and stamps
• Debit and credit cards
• Money or credits, including, but not limited to, digital money or credits and stored value cards
• Prescription and non-prescription drugs, as well as drug-like compounds
• Prohibited items
• Firearms, weapons, reproductions, stun guns, and other items
• Alcohol [A valid licence must be provided to Shopee and accepted]
I urge that you read this post to learn more about the forbidden products on Shopee Singapore.