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Shopee's Product Delivery Method

Shopee, one of the most popular e-commerce platforms in Southeast Asia, has a unique product delivery method that sets it apart from its competitors. Unlike Amazon Prime, which guarantees delivery within two days, Shopee ships products directly from Korea to customers' doorstep. This approach has several advantages and disadvantages.

Advantages

• Simple procedure: Shopee's product delivery method is straightforward and easy to understand.
• Minimized risk of forwarding: By shipping products directly from Korea, Shopee minimizes the risk of lost or damaged products during transit.
• Cost-effective: Shopee's product delivery method does not require a significant investment in infrastructure and logistics.

Disadvantages

• Longer delivery time: Shopee's product delivery method takes about a week for local consumers to receive their orders, which is longer compared to Amazon Prime. This may lead to frustration among customers.
• Higher costs: The cost of shipping products directly from Korea can be higher compared to Amazon Prime, which has invested heavily in its logistics infrastructure.

Shopee's Advertising

Shopee's advertising capabilities are limited compared to Amazon. Shopee offers three types of ads: 'Keyword', 'Shop', and 'Discovery'. However, the effectiveness of these ads is lower due to their placement within the listing.

• Internal advertising: Shopee does not provide enough advertising-related data for efficient campaign operation.
• Limited ad options: Shopee's limited ad options make it challenging for sellers to reach their target audience effectively.

Attractive Platform for Global Expansion

Shopee has several attractive features that make it an excellent platform for global expansion. These include:

• Easy sales procedures: Shopee's sales procedures are relatively easy, making it simple for new sellers to start selling.
• Low sales fees: Shopee charges a low 3% sales fee, which is lower compared to Amazon.
• Real-time chat inquiries: Shopee provides real-time customer support, which helps to build trust with customers.
• Various support programs: Shopee offers various support programs, including cost support, training, and incubating, which can help new sellers to succeed.

Shopee is an attractive platform for global expansion due to its ease of use, low sales fees, and variety of support programs. However, it lacks the sophistication of Amazon's advertising capabilities and has longer delivery times. To overcome these limitations, Shopee has been upgrading its advertising-related services and actively encouraging external marketing efforts.

References

[1] 『Shopee Introduction for New Sellers』, Shopee Korea
[2] 『What is Preferred Seller?』, Shopee’s Seller Training Hub, https://shopee.kr/edu/courseDetail/533?lessonId=1715
[3] 『Official Mall』, Shopee Seller Training Hub, https://www.shopee.kr/edu/article/10211
[4] 『Next Asean Power Seller 2021 a 2nd round of education』, Shopee Korea