Historical first! Shopee earned nearly 24 billion in Thailand, with impressive logistics performance; The number of cross-border e-commerce entities in China has exceeded 100,000; Shopee’s website has launched the dynamic locking and stocking function for one store with multiple operations

Shopee earned nearly 24 billion in Thailand with impressive logistics performance and launched dynamic locking and stocking function for one store with multiple operations The number of cross-border e-commerce entities in China has exceeded 100,000

01 First time in history

Shopee earned nearly 2.4 billion in Thailand with outstanding logistics performance

It is reported that after taking a series of measures to reduce expenses, adjust operations, and improve service fees, Thailand’s main e-commerce platform is turning to profitability after nearly a decade of losses.

According to data released by Creden, Shopee achieved profitability for the first time in 2022, with an amount of 2.4 billion baht, while Lazada achieved 413 million baht.

• Amazon China responds to the closure of its app store; Cross-border e-commerce trade between China and Central Asia increased by 95% year-on-year; Shopee releases its best-selling list; The exchange rate of the Chinese yuan against the US dollar experienced significant fluctuations | Cross-border Intelligence Bureau
• How to effectively advertise on Shopee during the big promotion? What are the cross-border categories for the Shopee big promotion?
• Shopee’s COD return policy has been updated and has taken effect this month

In terms of revenue, in 2022, Shopee’s revenue was 21.7 billion baht, followed by Lazada, which was 20.7 billion baht.

Pawoot Pongvitayapanu, CEO of Creden, said that Lazada achieved profitability in Thailand in 2021, while Shopee achieved profitability for the first time last year.

Sea Group has 9 subsidiaries in Thailand, with a total revenue of 55 billion baht and a profit of 2.5 billion baht in 2022. Shopee accounts for the largest proportion of Sea (Thailand)’s revenue and profit in 2022.

It is worth noting that Shopee Express (Thailand) had a revenue of 16 billion baht and a profit of 932 million baht last year, demonstrating its logistics profitability.

“In terms of revenue, Lazada (Thailand) ranked first in 2021, but Shopee surpassed it in 2022,” said Mr. Pawoot.

Both Lazada and Shopee raised their service fees from 1% to 2% (excluding tax) last year and will raise them again from 2.14% to 3.21-4.28% (including tax) in April 2023, depending on the product category.

Earlier, Visanu Vongsinsirikul, secretary-general of the Thai Trade Competition Commission, said that if these two companies increase their fees at the same time and provide the same fee multiple times, it may violate Article 54 and Article 72 of the Trade Competition Law and may be fined an amount equivalent to 10% of their income.

02 Over 100,000 Cross-border E-commerce Entities in China

According to the Ministry of Commerce, the national on-site meeting of cross-border e-commerce comprehensive test zones was held in Hangzhou, Zhejiang Province on May 30-31. The meeting emphasized that the Party Central Committee and the State Council attach great importance to the development of new forms of foreign trade, and have repeatedly deployed work to promote the development of cross-border e-commerce.

Cross-border e-commerce has a fast development speed, great market potential, and strong driving force. It can match supply and demand at low cost and high efficiency, providing personalized and high-quality services for more enterprises and end consumers.

The meeting pointed out that in recent years, cross-border e-commerce has made gratifying progress. The Ministry of Commerce, together with relevant departments, has continuously innovated in terms of systems, management and services, and issued a series of policy measures to create a good environment for the development of cross-border e-commerce.

Various comprehensive test zones have continuously promoted the construction of the “six systems and two platforms”, vigorously cultivated market entities, gradually improved the cross-border e-commerce ecosystem, driven local industry optimization and upgrading, and achieved positive results.

The proportion of cross-border e-commerce goods imports and exports to foreign trade has increased from less than 1% five years ago to about 5% currently. Over 100,000 cross-border e-commerce entities have been established in China, with over 200,000 independent sites and about 690 cross-border e-commerce industrial parks in the comprehensive test zones. Cross-border e-commerce trading partners are spread all over the world, and memorandums of understanding on bilateral e-commerce cooperation have been signed with 29 countries.

The meeting requires that all regions should grasp the development opportunities of China’s cross-border e-commerce, solidly promote the construction of comprehensive test zones, and create a new highland for innovative development of foreign trade.

Efforts should be made to promote the digital application of trade, improve the level of customs clearance facilitation, sort out mature experience and practices, and hold special training sessions; accelerate the construction of new types of foreign trade infrastructure and build a cross-border logistics network; optimize the functions of online service platforms and explore new modes of financial services; actively explore emerging markets and strengthen international exchange and cooperation.

03 Shopee Malaysia Site One-Stop Multiple-Shop Product

Dynamic Locking Function Online

According to Shopee news, the platform Chinese seller center launched the dynamic locking function for one-stop multiple-shop products on the official warehouse of the Malaysia site on May 29, 2023. Regardless of whether the activity is locked or not, orders will be prioritized to be shipped from the official warehouse. This function will significantly improve your inventory turnover speed, increase replenishment cycle estimate accuracy, and help you reduce costs and increase efficiency on the seller side through overseas warehouses and enhance the buyer’s experience!

The dynamic locking function for one-stop multiple-shop products refers to the function of locking the inventory in advance by product dimension when the product participates in a promotional activity to reserve a safe inventory. The upgraded function will reserve the number of products reported by the seller for the activity according to the total inventory of the product (seller’s warehouse + Shopee official warehouse) instead of locking the official warehouse inventory.

Before the function is launched:

If the seller reports a promotional activity for official warehouse products, the system will lock the Shopee official warehouse inventory according to the activity inventory quantity reported by the seller to reserve a safe inventory before the promotion activity starts. Therefore, when the Shopee official warehouse inventory<=activity reserved inventory, because there is no extra inventory in the official warehouse, the orders generated before the activity starts cannot be fulfilled from the official warehouse and the seller needs to complete the order by shipping from domestic cross-border direct mail.

After the function is launched:

If the seller reports a promotional activity for official warehouse products, the promotional inventory will be reserved according to the total inventory of the product (seller’s warehouse + Shopee official warehouse), and the official warehouse inventory will not be locked. Therefore, orders generated before the promotional activity starts will continue to be shipped from the official warehouse as a priority and will no longer be affected by inventory locking.

Impact on sellers:

This feature will ensure that orders continue to be shipped from official warehouses with increased inventory turnover speed. Sellers should pay attention to the inventory of official warehouses and adjust their replenishment plans in a timely manner. Pure warehouse stores in overseas warehouses who wish to use this feature should contact their account manager to change their store type, which will not affect the commission discounts for overseas warehouses.

We will continue to update BusinessDialogue; if you have any questions or suggestions, please contact us!