HOLY TRINITY COLLEGE OF GENERAL SANTOS CITY

Fiscal Daproza Avenue, General Santos City

SHOPEE:

ANALYSIS OF THE SHOPEE’S STRATEGIES

TO SUCCEED IN GLOBAL E - ECONOMY

Submitted by: TEAM A (ROAR)

Cataluna, Chloe T.
Flores, Armand S.
Gocela, Mary Gil P.
Malcontento, Marc Anthony P.
Medtimbang, Nur-Aisa O.
Soliman, April Joy A.

Submitted To:
Ms. Anita R. Almoite
Instructor

In partial fulfillment of the requirements for the Strategic Management.

October 2022
 INTRODUCTION
In the rapidly evolving era of globalization, people’s lifestyles are gradually
changing in tandem with the growth and development of technology. The World
wide web can reach out to the entire population, regardless of time or location.
Because of high mobility in daily activities, people’s lifestyles are now convenient
and becoming increasingly instant in this day. The reason why e-commerce is
expanding rapidly and influencing numerous businesses and industries.

Shopee is most popular in Southeast Asia, with locations in Singapore,

Malaysia, Thailand, Indonesia, Vietnam, Taiwan, and the Philippines. Shopee is
one of the fastest growing e-commerce platforms across Asia is Shopee.
Founded by Forrest Li or Mr. Li Xiao Dong in 2015 under the Sea Group
(formerly known as Garena) in Singapore, Shopee originally began as a social-
first, mobile-centric C2C marketplace.

Shopee was a highly successful e-commerce company in the

marketplace. Shopee’s top competitors:

1. Lazada
2. Amazon
3. eBay
4. AliExpress
5. Tokopedia

Shopee offers free shipping with certain purchases in order to entice

customers to shop. Price is an important consideration for consumers. Shopee
takes advantage of this by running the “Lowest Price Guarantee, 2x Money Back”
campaign to compete with other marketplaces.

Shopee’s Marketing Strategy:

1. Using the latest marketing techniques

2. Holding Promo
3. Have a clear target market clear
4. Lowest price guarantee
5. Heavy promotions and value-added services
 STATEMENT OF THE PROBLEM

This study intends to know the strategies of Shopee to Succeed in the

Global E-commerce. Specifically, this sought answer the strategic methods used
by the Shopee which is SWOT analysis:

STRENGTH WEAKNESS
 E-commerce  Misinformation of products
 Pioneered In Popularity  Shipping cost
 Payment options  Not accessible to all
 Attractive pricing and promotion  Delivery system

OPPORTUNITIES THREATS
 Growing market  Existence of hackers or cyber
 Global business expansion hijackers
 24/7  Threat of new entrants
 Fraud

Due to rapidly growth cases of Covid-19 in the year-end 2019 up to the

present e-commerce has given an enormous opportunity to propose their
services and products. Shopee became the number 1 in the Philippines and In
the mobile-first economy of the Philippines, Shopee is a significant player. It is a
comprehensive, mobile-first online store that offers a traditional web experience.

 SHOPEE’S BRAND AMBASSADOR CONTROVERSY

 The new endorser and App ambassador of Shopee was a controversy here
in the Philippines. Many of the users and consumers decides to uninstall the app
and look for the substitution which is ealiz. As for the consumer opinion, they
deleted the app because of Toni Gonzaga who recently campaign with President
Bong Bong Marcos. Consumer said that they tend to reduced their workforce and
enable to pay for an ambassador who are not worth for. “Together with our
newest brand ambassador, Toni, we are working to deliver entertaining content
to drive anticipation leading up to the upcoming 10.10 Brands Festival,” the
company said in a statement.

 SHOPEE RETURNING PRODUCTS

According to a 2009 survey about the top six reasons people provide for
returning products, the Supply Chain Consortium, around 75% of the causes for

returns consists of:

• Customers placed orders for the incorrect item or size

• Following receipt of the merchandise, the customer reconsidered their

purchase.

• No justification from clients

• The product’s quality fell short of what was promised on the website or catalog.

• The expectations of the clients were not met

• The shipping firm sent the incorrect item or size.

In order to increase online client satisfaction, the World Economic Forum

2018, numerous stores or online marketplaces provide return policies, and
services that comprise:
• Re-sealable packaging and pre-printed returns labels are provided with the
product package.

• The return address for products.

• Guidelines and detailed processes for automatic refunds and returns.

Although reverse logistics management is less significant than supply

chains, it is nonetheless levels are equivalent. The procedure establishes
eligibility and disposition the process for handling returned products. Moving the
goods to the vendor, settling financial differences between buyers and sellers,
and facilitating a seamless return process are all made possible. 147 (Sehgal
2009).

 HANDLING COMPLAINTS BETWEEN SELLER AND BUYER

More complaints regarding this issue were submitted to Shopee than to

other marketplaces. Customers will eventually resort to the customer care team
to beg for justice when they are faced with this problem, but the customer service
team is not the appropriate person to assist customers in this situation. To reach
a final decision that is just in each circumstance, there must be a clear process
that both the seller and the buyer can adhere to.  Shopee does have a policy for
resolving a dispute between buyers and sellers. However, the policy has many
flaws which have caused quite a several problems for buyers, because buyers
are those who often fall into the scam on online marketplaces easily.In case of
returning products, Shopee requires the seller to provide a video clip related to
the complained order which includes information such as packaging process
which shows that information of buyer is filled correctly, the status of the product.
On the buyer side, Shopee requires the buyer to provide the chat history about
consultation, agreement between buyer and seller before the order was
confirmed.To avoid this problem, Shopee should have a specific dispute process
which consists of all the steps and time range for each step, for example:

• Buyer and seller should contact each other and try to solve the dispute
themselves first.

• If the conflict still exists, buyer or seller can contact the dispute department and
provide required evidence.

• The dispute department will assess all the evidence from both side within 3
working days.

• The judgement result should be announced after 3 days and both sides must
follow the final decision.

• Return policy must be applied and followed closely in case the buyer has has
the right to return the product. Return period must be indicated specifically.

• Follow up return process is refund. The buyer should be able to claim full or
partial refund depending on each case based on the judgement of Shopee.

 SHOPEE EXPECTATION VS. REALITY ITEMS

In the recent surveys have predicted that the online shopping “Shopee” will
show considerable growth over the few years, although there is still much
uncertainly about the factors that will drive or inhibit this growth. This case study
presents of customers experience of online shopping problems. By examining
more than 100 purchase of a wide range of products or items from the “shoppee”
here in the Philippines, the transactions and the experiences of consumers were
compared with expected outcomes base on current research. The study found
that consumers expectations of items, ealizedd service and access to a wider
variety of items or products were ealized 70% of cases. However, costumer
concerns and satisfaction about their items is to return or refund the items that
they received not exactly expected. As the customer’s order a right items as they
expecting to be receive of what they placed in the order.

PRESENTATION OF THE FINDINGS

FINDINGS

Graph 1. Shopee Annual Revenue

3.5
3
2.5
2
O
N
B

L
L

S
I

1.5
1
0.5
0
2019 2020 2021

Year

Figure 1 shows the increasing annual revenue of Shopee from the year 2019 up
to 2021. During the pandemic in 2019, the total revenue was $909.1 million. In
2020, the total revenue was $1.6 billion, which increased to 30.9%. In 2021,
during the post-pandemic, the total earn profit was $3.2 billion, a 100% increase
from 2020.

Source: https://mobilemarketingreads.com/shopee-revenue-and-usage-statistics/
Figure 2. Shopee website views per month from the first quarter of 2019 to the
third quarter of 2021

80

70
Monthly web visits in million

60

50

40

30

20

10

0
Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21
Year 2019-2021

Series1

Figure 2 depicts the number of monthly visitors to the Shopee website in the
Philippines reached at over 73.65 million as of the third quarter of 2021. The
number of monthly visitors to the online shopping platform increased by up to
46% between the third and fourth quarters of 2020.

Source: https://www.statista.com/statistics/1251371/philippines-monthly-web-
visits-shopee/
 COMMENTS
“One thing I like about Shopee is the reviews of other customers or online
shoppers because they help a lot with purchases, especially for first-time users of
Shopee. You can also browse more items on Shopee because there are so
many sellers who sell the type of item you want. One thing I like about Shopee is
the low pricing, but one thing I don't like is the shipping fee, which is more
expensive than the item itself. I liked how it made me feel like I was using a
social media app.” – Cataluna

“Shopee has a consumer rating of 1.63 stars from 184 reviews indicating
that most customers are generally dissatisfied with their purchases. Consumers
complaining about Shopee most frequently mention customer service, live chat
and many times problems.” – Flores

“Shopee Guarantee works by holding the payment to a seller and

releasing it only when the buyer confirms receiving the order in good condition. If
the item turns out to be unacceptable, the buyer can request for return via the
Shopee app. Shopee also gives buyers a one-time, three-day extension of the
Shopee Guarantee period if they have yet to receive their orders.” – Gocela

“While shopee is in a good way to earn money online, it will eventually fail
to maintain traction due to the fact that some of its visitors are there due to miss
clicked links, and some can't find the product(s) they want on the site” -
Malcontento

“Shopee has had a meteoric rise to success in Southeast Asia and

obviously, there's something about it that appeals to Asian consumers. We can
be sure of two things. Firstly, with the growth of e-commerce in the past few
years, and with an ongoing trend towards online shopping, online shopping
platform is bound to get bigger. Secondly, with the help of e-commerce software
and apps, it will be accessible to everyone - and communication tools like
Shopee are paving a smoother path for business owners everywhere.” –
Medtimbang

“The success of an organization can be attributed to its ability to inspire

confidence in both new and loyal customers. An e-commerce platform like
Shopee must treat consumers well because there must be a sense of
partnership. However, the owner of the business, in this case Shopee, must be
ready to comprehend all of their client's wants. It should be remembered that
customer happiness will depend on the level of assurance and purchasing style
the customer chooses when making an online purchase.” – Soliman
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