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Shopee: Transforming Online Shopping in Southeast Asia’s Growing Market

Shopee: The Top Online Marketplace in Southeast Asia

In today’s digital age, online marketplaces have become an essential part of our shopping experience. Whether we need to buy the latest gadgets or find unique gifts for our friends, the internet has made it easier and more convenient than ever before.

Among the plethora of online shopping platforms, one particular marketplace that stands out is Shopee. In this article, we will explore Shopee’s platform, user community, history, and growth.

1) Overview of Shopee

Shopee is an online marketplace that was founded in 2015 by Chris Feng, a former executive of Garena, a gaming platform in Southeast Asia. Shopee provides a wide variety of shopping categories, including fashion, electronics, beauty and health, home and living, sports and motors, toys and hobbies, and groceries.

It also features a program called Shopee Mall, which brings together official stores of popular brands, and ensures authentic products that come with hassle-free returns.

If you are a seller, Shopee offers an easy and user-friendly platform to sell your products.

You can create and customize your store, manage your inventory, and track your sales all in one place. Shopee also provides several tools to help you increase the visibility of your products and drive sales, such as social media sharing, discounts, and flash sales.

The Shopee platform is available in various Southeast Asian countries, including Singapore, Malaysia, Thailand, Indonesia, Vietnam, and the Philippines. It has expanded to other countries as well, such as Taiwan, Japan, and Brazil.

2) Shopee’s User Community and Incentives

One of the key factors that makes Shopee stand out is its user community, which is actively engaged in the platform. Shopee has a program called Shopee Pros, which are users who have a record of being trusted buyers or sellers.

These Pros enjoy several benefits such as exclusive discounts, early access to sales, and the ability to earn rewards and bonuses. Another incentive that Shopee provides is the Shopee Coin program.

Shopee Coins are a virtual currency that can be earned through activities such as daily check-ins, playing games, and reviewing purchases. Shopee Coins can be used as a form of payment, and can also be exchanged for vouchers and discounts.

Shopee also provides several games, such as Shopee Shake and Shopee Quiz, which allow users to earn more coins and rewards. It is interesting to note that Shopee is owned by Garena, one of the biggest gaming platforms in Southeast Asia.

This allows Shopee to tap into Garena’s extensive user base and offer cross-promotions and collaborations with other Garena-owned services.

3) History and Growth of Shopee

Shopee’s journey began in 2015, when it was launched under the name of “Shopee Mall” in Singapore. The platform initially focused on providing a secure payment solution and social features, which allowed users to follow and interact with their favorite sellers.

These features helped Shopee stand out from other online marketplaces and gain a loyal user base. In 2017, Shopee underwent a rebranding and changed its name to “Shopee”.

This was accompanied by a massive advertising campaign and the introduction of several new features, such as free shipping and a discount code system. These efforts paid off, as Shopee quickly became one of the top online marketplaces in Southeast Asia.

In 2018, Shopee launched its initial public offering (IPO) on the New York Stock Exchange. This marked a significant milestone for the company and helped it raise more funds for expansion and growth.

In the same year, Shopee expanded its operations to Brazil, marking its first foray into the Latin American market. Today, Shopee is one of the top online marketplaces in Southeast Asia and several other countries.

It has surpassed its competitors in terms of monthly active users and is on track to achieve profitability. With its innovative platform, engaged user community, and strong growth trajectory, Shopee is well-positioned to continue its success in the future.


In conclusion, Shopee is an impressive online marketplace that has managed to stand out from its competitors in several ways. By providing a wide variety of shopping categories, user-friendly seller tools, and engaging user incentives, Shopee has gained a loyal following in Southeast Asia and beyond.

Its growth trajectory is promising, and it will be exciting to see what the future holds for this innovative platform.

3) Revenue Streams of Shopee

In the world of e-commerce, revenue streams refer to the different ways that companies earn revenue from their platform. Shopee’s revenue is generated through various sources, including marketplace commissions, transaction fees, and other fees related to advertising, fulfillment, payment, and delivery.

In this section, we’ll take a closer look at how Shopee earns revenue through its different revenue streams. 3.1 Marketplace Commissions and Transaction Fees

Shopee generates revenue through commissions and transaction fees charged to sellers on its platform.

Shopee’s commissions vary depending on the category of the product sold, the seller’s location, and the seller’s level of sales activity. Generally speaking, Shopee’s commissions range from 2 to 5% of the total value of the sale.

The effective commission rate, however, can be higher when transaction fees are included. Transaction fees are charged on top of the commission, and are based on the payment method used by the buyer.

For example, if a buyer uses a credit card to pay for their purchase, Shopee charges a transaction fee of up to 2.5% of the total amount paid. In comparison, if the buyer pays through ShopeePay, Shopee’s digital wallet service, there is no transaction fee charged.

Shopee’s commissions and transaction fees are a key source of revenue, as they generate income from every transaction that occurs on the platform. As Shopee continues to grow and expand into new markets, these revenue sources are expected to increase in importance.

3.2 Other Fees

In addition to commissions and transaction fees, Shopee also generates revenue from other fees related to advertising, fulfillment, payment, and delivery. Here are some examples:

– CPC Advertising: Shopee allows sellers to promote their products through Cost-Per-Click (CPC) advertising.

Sellers pay each time a user clicks on their ad, and Shopee earns a revenue share for facilitating these ads. – Fulfillment Services: Shopee offers fulfillment services to sellers who want to store their products in Shopee’s warehouses.

Sellers pay a fee for this service, and Shopee earns revenue from these fees. – ShopeePay: Shopee’s digital wallet service, ShopeePay, charges fees for certain transactions.

For example, if a user wants to withdraw money from their ShopeePay account to their bank account, there is a small fee charged. – Delivery & Restaurant Commission Fees: Shopee’s food and grocery delivery services, ShopeeFood and ShopeeMart, charge restaurants and retail partners a commission fee to use their platform for delivery and orders.

4. Funding, Revenue, and Ownership of Shopee

4.1 Funding and Investors of Sea Limited

Shopee is a subsidiary of Sea Limited, a Singaporean multinational company that operates in the internet space, focusing on entertainment, e-commerce, and digital payments.

Since its founding in 2009, Sea Limited has raised over $6.5 billion in funding across multiple rounds. Some of Sea Limited’s most notable investors include Tencent, the Chinese multinational conglomerate; Hillhouse Capital, a private equity firm; and T.

Rowe Price, a publicly-traded asset management company. In 2017, Sea Limited went public on the New York Stock Exchange, raising $884 million in its initial public offering.

4.2 Shopee’s Revenue and Ownership

As of 2020, Shopee has become the largest e-commerce marketplace in Southeast Asia, with a monthly active user base of over 200 million. Shopee’s revenue has grown significantly over the years, and in Q3 2020, it generated $618.7 million in revenue, a 173% increase from the same period in 2019.

Shopee’s growth has also impacted the market cap of its parent company, Sea Limited, which rose to more than $100 billion in late 2020. Tencent, one of Sea Limited’s largest investors, owns almost 24% of the company as of December 2020.


In conclusion, Shopee has multiple revenue streams that allow it to generate income from its platform. Marketplace commissions and transaction fees are the primary sources of revenue, but Shopee also earns income from other sources such as advertising, fulfillment, payment, and delivery fees.

As Shopee continues to grow into new markets and expand its user base, these revenue streams are expected to continue to add value to the company’s bottom line. As a subsidiary of Sea Limited, Shopee operates in a strong financial position, supported by a diverse range of investors.

5) Shopee’s Shipping Availability

One of the most important aspects of an online marketplace is its shipping availability. Customers want to know whether they can have their purchases delivered to their location, and how long it will take for the item to arrive.

In this section, we’ll take a closer look at Shopee’s official shipping destinations and alternative shipping methods for customers. 5.1 Shopee’s Official Shipping Destinations

Shopee’s platform is available in several countries across Southeast Asia, including Singapore, Malaysia, Thailand, Indonesia, Vietnam, and the Philippines.

Shopee’s official shipping destinations are typically limited to these countries, although some sellers may offer international shipping for an additional fee. Shipping is typically done through Shopee’s own delivery system or through third-party logistics providers.

Shopee employs a system known as Shopee Express, which manages deliveries for orders placed on the platform. Shopee Express offers free shipping for certain orders, although other shipping options are available at varying costs depending on the item’s size and distance.

While Shopee primarily serves Southeast Asia, it has recently expanded into other markets, including Taiwan, Japan, and Brazil. As the platform continues to grow, it is possible that Shopee will expand its official shipping destinations to other countries outside Southeast Asia.

5.2 Alternative Shipping Methods for Customers

Customers who live outside of Shopee’s official shipping destinations may still be able to purchase products through the platform by using freight forwarders. Freight forwarders are companies that specialize in shipping goods from one country to another, typically by air or sea freight.

Customers can have their purchases shipped to a local freight forwarder address in Southeast Asia, which will then forward the package on to the customer’s international address. Another option for customers is to find a seller who offers international shipping.

Some sellers on Shopee may be willing to ship to locations outside of Shopee’s official shipping destinations if the customer is willing to pay for the additional shipping costs. Customers in Australia and the United States, in particular, may have an easier time finding sellers who offer international shipping.

Shopee has a dedicated Australian website, and some sellers on the platform may offer direct shipping to the United States. It is important to note that customers who use alternative shipping methods may face additional costs and longer delivery times.

Additionally, customers should be aware of any customs or import fees that may apply when receiving packages from overseas.


In conclusion, Shopee’s shipping availability is primarily limited to Southeast Asia, although the platform has recently expanded into other markets. Customers who live outside of Shopee’s official shipping destinations may still be able to use the platform by using freight forwarders or finding sellers who offer international shipping.

It is important for customers to be aware of the additional costs and longer delivery times associated with alternative shipping methods. As Shopee continues to grow and expand, it is possible that the platform will offer more official shipping destinations and additional options for international customers.

In conclusion, Shopee is a leading online marketplace in Southeast Asia, offering a wide range of products and services to its active user base. Shopee’s revenue streams include marketplace commissions, transaction fees, and other fees related to advertising, fulfillment, payment, and delivery.

It has achieved significant funding and investment from notable companies like Tencent. Shopee’s official shipping destinations primarily cover Southeast Asia, but alternative shipping methods such as freight forwarders and sellers offering international shipping can provide options for customers outside these regions.

The importance of Shopee’s shipping availability cannot be understated, as it plays a crucial role in ensuring customer satisfaction and providing access to a wider market. As Shopee continues to expand and innovate, its shipping capabilities will continue to evolve to meet the needs of its users.

Shopping online has never been easier, thanks to platforms like Shopee that prioritize customer experience and convenience.

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