A Complete Guide To Selling On Shopee In 2024!

The eCommerce landscape worldwide is evolving, driven by technological advancements, innovative products, and changing consumer buying patterns. Furthermore, IoT and smartphones will significantly impact the global eCommerce scene. Interestingly, the Southeast Asian eCommerce sector is also rapidly growing and is expected to expand considerably in the next decade, with Shopee emerging as a strong competitor.

Shopee Overview

Founded in 2015 and owned by Sea Group, Shopee is based in Singapore. It transitioned from a C2C to a B2C model and is now one of Southeast Asia’s largest eCommerce platforms. Shopee, a savvy rival, aims to challenge eCommerce giant Lazada. Shopee has already surpassed Lazada in active users and mobile app downloads in several crucial Southeast Asian countries.

Despite its relative newness, Shopee is vying with Lazada, which Alibaba Group owns. Shopee’s seller-centric approach and techniques, like commission and listing fee exclusions, give it a competitive edge. Shopee has expanded to most ASEAN member states, offering businesses access to fast-growing ASEAN markets.

Why Choose Shopee for Your Business

When expanding cross-border eCommerce connections, businesses must carefully consider their chosen marketplaces. Shopee stands out as an excellent option, and here’s why:

• Access to Southeast ASEAN Nations: Shopee has established a strong presence in key Southeast ASEAN countries. This allows businesses seamless entry into some of the fastest-growing ASEAN markets.
• Affordable Transaction Fees: Shopee offers a transaction fee of 1.5%, significantly lower than Lazada’s 2 to 8% commission, making it a cost-effective choice for sellers.
• Future Growth: Shopee is poised to remain a major player in the eCommerce landscape for the next decade. Businesses can confidently tap into this marketplace’s full potential.
• Global Reach and No Commission: Shopee’s rapid expansion mirrors giants like Lazada and Tokopedia. However, Shopee’s edge lies in its no-commission and no-listing charge features, providing businesses with a cost-effective platform.

Fulfillment Options on Shopee

Cross-border selling offers growth potential but necessitates reliable fulfillment. Shopee offers two fulfillment options:

Fulfillment by Shopee (FBS): Shopee’s FBS covers everything from order entry to quality control, storage, packaging, shipping, and returns. Access is granted by invitation, primarily for high-volume sellers and top brands.

Third-Party Fulfillment Centers: Sellers can opt for third-party fulfillment while awaiting FBS approval. The spike in cross-border demand has led to various third-party fulfillment facilities in the Southeast ASEAN marketplaces.

Payment Process Made Simple

Secure and adaptable payment options are crucial for eCommerce success, especially for international sales. Shopee ensures ease for both buyers and sellers:

Buyers: Shopee offers secure payment choices based on the buyer’s location, such as debit or credit cards, cash on delivery (COD), or bank transfers.

Sellers: Shopee provides two convenient withdrawal options: bank transfer or linking their store to Payoneer. Payments are made twice a week, enhancing financial flexibility.

Shopee’s inclusive approach and user-friendly payment options make it an attractive platform for businesses looking to expand their global reach.

Basic of selling on Shopee

Setting Up Your Shop

To embark on your Shopee selling journey, follow these steps:

• Account Creation: Sign up on shopee.com.my, adding and verifying your phone number and email for visibility.
• Shop Profile: Head to the Seller Center and complete your shop profile, which includes your shop name, images/videos for branding, and a succinct shop description.

Creating Your First Listing

To list a product, follow these steps:

• Prohibited Items Review: Review the Prohibited and Restricted Items Policy to ensure your product complies with Shopee’s Terms and Conditions.
• Add New Product: In the Seller Centre, click “Add New Product.”
• Product Details: Fill in the product name, description, attributes, price, stock count, and variations.
• High-Quality Media: Upload high-resolution images, ensuring professional presentation.
• Shipping Settings: Set shipping details, including weight, dimensions, and fees.
• Additional Info: Indicate if it’s a pre-order product, condition (new/used), and optional SKU number.
• Save and Publish: Once complete, save and publish your listing for buyers to access.
• Boost Your Products: Use the “Boost Now” function to increase visibility, allowing up to 5 product boosts every 4 hours.

How to deliver a great shopping experience on Shopee?

To enhance your business presence on Shopee, it is essential to adhere to these recommended strategies:

1. Customer Service: Utilize Shopee’s Webchat to provide swift, informative, and amicable responses to customer inquiries and requests.
2. Fulfillment: Build trust and loyalty by ensuring timely deliveries and avoiding order cancellations.
3. Listing: Establish credibility by featuring genuine products and offering accurate descriptions.
4. Marketing: Generate traffic to your store and cultivate a robust brand identity using Shopee’s Marketing Centre.
5. Policies: Familiarize yourself with Shopee’s seller policies and adhere to their Performance Standards to maintain a positive seller reputation.

3 Strategies to Sell on Shopee Without Inventory

Selling on Shopee without maintaining a physical inventory involves three main strategies: Drop shipping, print-on-demand, and digital products.

1. Drop shipping

Drop shipping is an ideal method for selling without inventory on Shopee. This model entails listing products on Shopee without the need to stock them. Instead, your supplier manages product shipping to customers while you handle product listings.

Pros:

• Low startup costs
• Ability to test various products without inventory
• Supplier manages shipping and logistics
• Quick Shopee seller account creation

Cons:

• Complex refund procedures
• High competition
• Limited control over shipping and product quality
• Slim profit margins

2. Print on Demand (POD)

Print-on-demand strategies let you design smartly and sell customized products like apparel, mugs, etc. After receiving orders, your POD supplier prints the custom design on the product. Then, the same product is shipped to the customer.

Pros:

• Low-risk setup
• Creative product design
• No leftover inventory
• Various product options

Cons:

• Tight profit margins
• Challenges with product returns
• Limited control over product appearance

3. Digital Products

Selling digital content, stored in the cloud, is a viable option. These digital products can be directly credited to buyers, redeemed online or offline, such as game credits, vouchers, or tickets.

Pros:

• No additional production or shipping costs
• Full pricing control
• Instant delivery via the internet

Cons:

• Risk of unauthorized copying and resale
• Ongoing support and maintenance for some digital products
• Marketing challenges for digital products

Each strategy offers unique benefits and limitations, so choose the one that aligns best with your business goals and objectives when selling on Shopee without inventory. Be sure to adhere to Shopee’s seller policies to maintain a positive reputation.

Conclusion

To achieve Top Seller status on Shopee, certain conditions must be met. This includes securing 75 new monthly orders from 35 unique customers, maintaining a 70% chat response rate, upholding a shop rating of at least 4.6, offering top-tier, authentic products, and ensuring 95% of your listed items are readily available for customers.

Any query about selling on Shopee? Talk to Vinculum’s business professionals right away!