SE | More Negative Newsflow (No More Free Shipping in Brazil; Lost Ground in Poland, Job Cuts)
06/13/22 01:46PM EDT
- In Brazil, SE shockingly stopped free shipping on orders under 20R$ leading to some upset users. The new policy was effective on June 6th. I've always thought because of Shopee's weak branding, once its free shipping incentive goes away, their advantage disappears. Shopee also raised the seller's commission rate from 3R$ to 5R$.
- Polish media released data saying that among the most popular local e-commerce platforms, AliExpress (BABA) and Allegro, a local e-commerce platform, ranked the top two respectively, and Amazon and Shopee tied for third place. Shopee had been #1/#2 in Poland since its debut in late 2021 - sounds like they're losing ground there.
- According to Singapore media sources, Shopee is set to implement “mass layoffs” across its international operations including Indonesia, Thailand & Vietnam. The job cuts will include Shopee, ShopeeFood and ShopeePay workers. The decision was announced to employees earlier today in an international town hall meeting. Shopee is also on a hiring freeze. This makes sense. SE is in cost cutting mode given the stock is down 70% YTD, and growth is slowing.
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