Diving into Shopee’s logistics efforts – and how they’re bearing fruit

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Hello reader,

I am a Shopee addict. The other day, while I was on the train, I caught myself opening up the Shopee app and scrolling through the recommended products the same way I scroll through Instagram.

I guess the app has additional value as a form of entertainment, on top of being the platform where I buy nearly everything.

Part of Shopee’s appeal to me – aside from the sheer variety of products available on its platform – is the convenience it offers, as it brings whatever I desire (or more accurately, whatever I pay for) right to my doorstep.

I was used to the packages being dropped off by couriers from companies like J&T Express and Ninja Van. However, in the last six months or so, almost all my parcels have come to me by way of SPX Express, Shopee’s in-house logistics arm.

Having its own logistics unit gives Shopee an edge in the ecommerce game – as we learn in more detail in today’s premium story.

Today we look at:

• SPX Express, Shopee’s latest trump card
• Patsnap’s revenue growth
• Other newsy highlights such as Apple’s shares hitting an all-time high and Zomato’s new investment in its quick commerce arm Blinkit

Premium summary

Right to your doorstep

Image credit: Timmy Loen

Logistics is a crucial part of the ecommerce puzzle – so it’s good news that Shopee’s efforts to grow its in-house logistics arm appear to be going well. In its latest earnings, the ecommerce platform boasted efficiency gains in its delivery and fulfillment services.

• Strong numbers: Shopee recently posted US$2.7 billion in revenue for the first quarter ended March 31. This marked an all-time high and also accounted for the bulk of Sea Group’s US$3.7 billion revenue in Q1. A key growth driver was Shopee’s expansion of its logistics arm, SPX Express, which now delivers more than half of the ecommerce firm’s orders in Asia and 70% of orders in Brazil.
• Competitive advantage: Having its own logistics arm gives Shopee “a key competitive moat and differentiator,” enabling it to reduce delivery costs. It also allows Shopee to have control over delivery times and the overall customer experience, giving it an edge over its competitors and reducing the need to compete on pricing.
• The battle rages on: However, Shopee can’t rest on its laurels, given the increasing competition it’s facing from rival Lazada – which has also invested heavily in logistics – and new entrant TikTok Shop.

Read more: Shopee’s latest trump card is bearing fruit

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