How Shopee helps sellers adapt to the new era of ecommerce

Looking at photographs of the devastating impact of the 1918 flu pandemic, some scenes feel familiar. From school closures and bans on public gatherings to fines dispensed to those unwilling to wear protective gear, the past is seemingly repeating itself as the world continues to grapple with the impact of the novel coronavirus.

The present has some things going for it that the past didn’t, however. Tasks such as going to the bank or purchasing groceries can now be easily performed via digital means. Even typically-offline social activities of a non-essential nature can be enjoyed online, be it clubbing, karaoke, or watching a movie with friends.

People have readily adapted to these lifestyle changes. What this means for businesses is that the unmistakable shift to digital can simply no longer be ignored. What were once nice options to have – such as digital transformation or omnichannel strategies – have now become necessary.

Ecommerce stands at the forefront of this evolution, with many of Southeast Asia’s platforms playing home to a sophisticated digital retail ecosystem. Integrated to support logistics and payments services, and designed to meet the needs of a mobile-first economy, the region’s ecommerce landscape has rapidly adapted to support this new way of life.

Bringing forward the inevitable

Lockdown and social distancing measures have led consumers to increasingly rely on digital means: They go online to shop for essentials and turn to contactless and digital payment options to complete transactions.

According to Shopee, this lifestyle shift has been largely inevitable, what with the digital transformation Southeast Asia has seen over the past decade, spurred on by initiatives such as Thailand’s Industry 4.0 and Singapore’s Smart Nation aspirations.

“What the coronavirus pandemic essentially did was accelerate this further, prompting consumers to adapt at an unprecedented rate,” says Zhou Junjie, chief commercial officer at Shopee. “It’s a shift that is broad, deep, and, in our view, irreversible.”

Zhou Junjie, chief commercial officer at Shopee / Photo credit: Shopee

This opinion is in line with research done by Bain & Company and Facebook, which found that 80% of consumers in the region are likely to continue buying groceries and other essential items online even after the pandemic is over.

That said, while this transformation was inevitable, its speed has caught some sellers off guard. Traditionally-offline businesses are now coming to terms with transitioning online as the brick-and-mortar model is rendered unviable in the current climate. Sellers of all stripes are wrestling with the acceleration of the digitization while learning how to drive the sustainability of their online operations.

Extending support to SMEs

Throughout the past few months, Shopee has launched a variety of programs to support small and medium enterprises (SMEs) across its key markets. From financial benefits to practical skills, the company is offering dedicated assistance to encourage small businesses to transition online and come on board its platform.

“Our commitment includes an array of initiatives addressing three key areas of support for local SMEs across the region, namely in financial relief, educational support, and additional resources for businesses new to ecommerce,” says Zhou.

In Singapore, financial relief has taken the form of the Ecommerce Booster Package. Established in partnership with Enterprise Singapore and other ecommerce players, the package provides benefits including lowered advertising and free shipping, among many others.

Local candy floss and popcorn shop Candy House joined Shopee through the Ecommerce Booster Package, tapping on the platform’s incubation program. “The firm did not have an online presence before the Covid-19 pandemic, yet more than 80% of its current sales are from our platform,” Zhou says. “The switch to digital has helped it ride out the crisis.”

Similarly, in Indonesia, the Covid-19 100M Support initiative provides aid in the form of capital assistance, advertising loans, and a discount on administrative fees.

At the regional level, Shopee launched its Seller Support Package. Alongside financial assistance, the program also provides training and support to help new sellers get started on their ecommerce journey.

The ecommerce player sees the support they offer to merchants as a long-term endeavor. “Beyond the aforementioned initiatives, we offer ongoing resources to businesses through Shopee University, which offers practical courses and webinars on topics such as marketing, financial management, advertising, livestreaming, logistics, and many more,” says Zhou.

Photo credit: Shopee

Adapting to the online arena

Speaking of livestreaming – shoppers also now expect more from their online shopping experience: It’s not just about adding a product to a virtual cart, checking out, and exiting the site anymore. Today’s ecommerce platforms have opted for an increasingly interactive and social experience in an effort to keep customers engaged and on their sites longer, with games and livestreams quickly becoming staples in online shopping.

To that point, Shopee has seen increased social interaction and engagement over the last few months from users of all ages. Markets like Singapore and Malaysia clocked a 200% increase in streaming hours since February for users in the 18-50 age group, according to Zhou.

In line with this shift, traditionally offline businesses that are now online, will also need to know the new rules of customer engagement. To assist newcomers to the ecommerce arena, Shopee also offers its Seller Masterclass series led by top sellers who have built a strong following via their livestreams.

“As livestreaming becomes a common way for brands and sellers looking to connect with their consumers online, this initiative serves as a platform for knowledge sharing among our seller community,” says Zhou.

The new reality

While Southeast Asian countries are gradually relaxing lockdown measures, Shopee believes that the changes that have taken place among consumers and businesses alike are here to stay.

“Ecommerce platforms and other digital services have played a significant role in keeping businesses afloat and in enabling consumers to meet their basic needs. This attests to the growth and maturity that digital solutions have experienced in recent years and their permanent place in today’s commercial ecosystem,” explains Zhou.

It’s time for firms to take stock and evaluate whether they are sufficiently prepared for future crises of this nature. Over time, businesses will need to continuously investigate the robustness of their supply chains and how present and visible they are across multiple channels. They will also need to be creative and be open to exploring alternative routes of customer engagement as they sustain long-term brand awareness. The latter point is particularly important as the novel coronavirus has been a catalyst for renewed conversations on the importance of digital literacy on a fundamental level, which is key to ensuring that users from all walks of life are able to progressively participate in the digital economy.

“We foresee that businesses will increasingly recognize that an omnichannel customer experience is no longer a good-to-have but a must-have. Customers have come to expect the same quality of experience whether online or offline, something which has been magnified by Covid-19, says Zhou.

Find out how you can be a part of Shopee’s efforts to help sellers adapt to the new normal and drive economic recovery on the company’s careers page.

This content was produced by Tech in Asia Studios, which connects brands with Asia’s tech community. Learn more about partnering with Tech in Asia Studios.