'''Shopee Pte. Ltd., trading as Shopee''', is a Singaporean multinational technology company that specialises in e-commerce and operates mainly in Southeast Asia.[3]
As of 2023, Shopee is recognized as the largest e-commerce platform in Southeast Asia,[4][5] with a total gross merchandise volume (GMV) of $47.9 billion.[6] This figure represents nearly half of the total GMV of Southeast Asian market. The platform also facilitates online buying and selling for consumers and sellers in East Asia and Latin America.[7]
History
Shopee was established in Singapore in February 2015 as a mobile-focused marketplace that enables users to browse, shop, and sell products.[8][9] The platform integrates logistical and payment support to facilitate transactions and is designed to operate with minimal physical assets.[10][11]
To enhance its competitive stance against other e-commerce companies, Shopee also launched a website.[12] A notable feature of Shopee is its escrow service, Shopee Guarantee, which withholds payments from sellers until the buyers confirm receipt of their orders, thus securing transactions.[13][14]
In 2016, the company launched its seller education platform called Shopee University,[15] which aims to help train local entrepreneurs and businesses in setting up their online businesses.[16][17] In 2017, Shopee launched Shopee Mall with 200 brands in Singapore and the Philippines.[18][19] On 3 September 2019, Shopee officially opened its six-story regional headquarters at Singapore Science Park.[20] The new building spans 244,000 sqft of space, which can accommodate 3,000 employees and is six times larger than Shopee's previous headquarters at Ascent Building. The building was leased by WeWork before it was relinquished to Shopee.[20]
Shopee has yet to turn profitable despite increasing its gross profit margin year-on-year in the first half of 2022 which is attributed to faster growth in transaction-based fees and advertising income. Coupled with rising inflation and interest rates as well as setbacks in its internationalisation plans, Shopee laid off staff across multiple markets in June 2022, including employees from Indonesia, Thailand, and Vietnam. ShopeePay and ShopeeFood were also reported to be facing cuts.[22]
On 15 September 2022, Sea's CEO, Forrest Li, issued a memo to all employees detailing cost-cutting measures aimed at achieving "self-sufficiency" for the company. These measures involved restrictions on business expenses and a temporary suspension of compensation for Shopee's top executives.[23] Another round of job cuts was also announced, which affected employees in Singapore, Indonesia, and China.[24] In the fourth quarter of 2022, Shopee achieved a positive adjusted EBITDA for the first time, amounting to $196.1 million, indicating improvements in revenue and operating costs.[25]
Business model
Shopee started as a consumer-to-consumer (C2C) marketplace but it pivoted into a C2C and business-to-consumer (B2C) hybrid model.[26] The company partners with over 70 courier service providers across markets it serves to provide logistical support for users.[27] In Singapore, Shopee collaborates with logistics startup Ninja Van for item pickup and delivery.[28] Other delivery partners in the region include Pos Malaysia and Pos Indonesia.[29][30] Shopee also partnered with Delhivery
Market share
In Q4 2017, Shopee became the third most visited e-commerce portal in Malaysia, overtaking Lelong, and became the top app on iOS and Google Play app stores.[35] A December 2017 survey revealed that Shopee was the top shopping platform for Indonesian mothers, with 73% preferring it over other platforms.[36] Despite Shopee's reported GMV growth, these claims faced criticism. Lazada's former CEO, Max Bittner, asserted that GMV numbers could be inflated through subsidy schemes and that GMV tends to decline once such subsidies are removed.[37]
Shopee was recognized as top shopping app in Q2 2019 based on monthly active users, total downloads, and website visits, as per a report by iPrice.[38] During this period, gross orders grew by 92.7% to 246.3 million, compared to 127.8 million in the previous year, and the gross merchandise value (GMV) surged by 72.7% to US$3.8 billion from US$2.2 billion.[39]
Recognition
According to the YouGov's Best Brands Rankings 2026 report, Shopee ranked second in the top 10 brands in Singapore list.[59]
Controversies
Meet-and-greet with Blackpink
In June 2019, #ShopeeScam trended on Twitter after Shopee released a promotion in the Philippines that offered passes to a meet-and-greet with Blackpink for the top 568 spenders in their online store.[60] Several fans reported receiving notifications that they had won tickets, but which were unilaterally retracted afterward by Shopee. Others posted screenshots that showed Shopee changing their contest mechanics the day before the event. Shopee was investigated by the Department of Trade and Industry for the incident.[61]
Underpaid couriers in Indonesia
In April 2021, Shopee faced allegations that it was underpaying its couriers in Indonesia after some riders claimed publicly that their pay per delivered package was reduced by the company to US$0.10 per package, down from US$0.34 in the previous year. Couriers that serve Shopee Express deliveries were also not paid basic monthly salaries, though there is a US$7.90 bonus if they can deliver 40 or more packages in a single workday. There is also no compensation for fuel or parking fees. Shopee responded to the allegations that it has a fair incentive scheme that is in line with Indonesia's market and regulations, and what they offer is "highly competitive" within the industry.
References
- ShopeeでJAPAN FINESTキャンペーンがスタート. 海外現地モールで日本直送品の露出枠が拡大. 18 August 2021^
- Fanny Potkin, Josh Ye. Exclusive: Sea Ltd shuts operations in some Latin American countries, cuts Free Fire staff in Shanghai Reuters, 2022-09-09^
- Yoolim Lee. Garena Rebrands as Sea After Raising $550 Million in New Funding