Two years after entering Brazil, Shopee’s e-commerce market share reached 5%

Goldman Sachs said in a report that two years after entering the Brazilian market, Shopee will have an estimated 5% share of the Brazilian e-commerce market by 2021, and the figure will be even larger by the end of this year.

Previously, Goldman Sachs also said that by 2025, as the product and service categories continue to increase, the company's market share may rise to 20%. The report also pointed out that in 2022, Shopee will increase investment in Latin American markets such as Brazil.

Recently, Shopee's parent company Sea emphasized the importance of the Brazilian market. Indeed, Shopee's performance in Brazil is quite impressive. From October to December last year , Shopee's order volume exceeded 140 million, a year-on-year increase of 400%.

Not only that, according to a recent survey by Bank of America Merrill Lynch (BofA), Shopee ranked first in customer satisfaction measured by NPS (Net Promoter Score), becoming the favorite e-commerce platform for Brazilian consumers. The 2022 mobile market report previously released by data.ai showed that Shopee ranked first in the ranking of monthly active shopping apps in the Brazilian market.

Recently, Shopee also announced the launch of Shopee Live in Brazil. After the launch of the live broadcast function, the platform will broadcast live every Tuesday and Thursday at 8 pm. In addition to inviting influential guests to serve as hosts, it will also conduct product sales and entertainment activities, and provide users with exclusive coupons, Shopee coins, etc. The live broadcast content is directly managed by the Shopee team.

Goldman Sachs believes that the ideal strategy for Shopee's Brazilian operations to achieve balance includes increasing the average value of each order and reducing the cost of delivering each order.

In terms of average value, Goldman Sachs analysts believe that in addition to increasing the categories and brands on the platform, the platform will also increase order value by adjusting the free delivery policy for orders and increasing the minimum amount for free delivery.

As for logistics costs, Goldman Sachs analysts expect Shopee to build its own delivery network in Brazil, combining direct shipping and cross-docking models.

It is reported that the opening of Shopee's first distribution center in Sao Paulo has greatly shortened delivery time, thereby improving online shopping satisfaction among Brazilian buyers.

Shopee

Brazil