Shopee changes rules and will only give free shipping to a few retailers; understand

THE shopee announced a change in its policy of free shipping this Friday, the 23rd. As of October 1st, the two monthly free shipping coupons per customer will only be available to online retailers that are part of the platform’s “Free Shipping Program”. In this program, shopkeepers pay an extra percentage of sales to gain access to more benefits.

While the fee charged to regular retailers is 14%, those who join the program pay 20% of the value of their sales to Shopee. However, the platform will still offer 3 coupons for 50% off monthly shipping per customer for all merchants.

The minimum purchase amount for customers to use coupons has also changed. It went from R$29 to R$39 in virtual stores that participate in the benefits program and from R$59 to R$69 for those who did not join this option.

FILE PHOTO: The logo of Shopee, the e-commerce arm of Southeast Asia's Sea Ltd, is pictured at their office in Singapore, March 5, 2021. REUTERS/Edgar Su/File Photo
FILE PHOTO: The logo of Shopee, the e-commerce arm of Southeast Asia’s Sea Ltd, is pictured at their office in Singapore, March 5, 2021. REUTERS/Edgar Su/File Photo

The platform has 2 million registered shopkeepers in Brazil, a number that, in general, does not correspond to the platform’s active shopkeepers, who actually sell there.

Asian Shopee does not say how many of these sellers are part of the program that gives access to more free shipping coupons. It is worth remembering that the company has other free shipping coupons available to consumers regardless of the fees paid by merchants.

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Known for an aggressive promotional strategy, Shopee is, little by little, seeking more rationality in the management of its costs. Other platforms such as Mercado Livre, Magazine Luiza, Americanas and Via (owner of Casas Bahia and Ponto) made moves to limit the freight subsidy and increase tariffs charged to sellers.

The trend is part of an adaptation to a scenario of high interest rates and greater market rationality, in which burning cash to grow no longer seems like a good idea.

Recently, the Shopee revised its expansion plan across Latin America. The company announced on its Argentine website the end of its operations in the country as of September 8.

In Mexico, the company also announced the end of local activities, but customers will be able to continue to buy products from international sellers, the so-called “cross border”. The operations in Colombia and the market must follow the same process. In the announcement, the company made it clear that the change in focus on expansion did not concern the Brazilian operation.

According to the leader of XP’s analysis team, Danniela Eiger, the fact that the company decided to focus its efforts on Brazil was news of a “neutral or marginally negative” impact on Brazilian competitors. This is because the competition from the Singaporean giant bothers the Brazilian companies and management seemed to see more profitable conditions in Brazil to operate than in neighboring countries.

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In a statement, Shoppe stated that “it is building an inclusive ecosystem that makes buying and selling accessible to everyone. In addition to supporting Brazilian entrepreneurs to benefit from the growth of the digital economy, we offer several benefits for consumers to save money when shopping online. In addition to the always available deals and coupons, we have special campaigns every month with the Shopee Days of the month, usually double dates, when we offer additional perks to users. The next action (10.10) starts on Monday.”

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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