August 17, 2022
With the growth in Brazil, Shopee opened five distribution centers

With the growth in Brazil, Shopee opened five distribution centers

Shopee’s expansion marks a presence in new cities such as SP, MG and RJ. paying off!

Estimated reading time: 3 Minutes

Last Tuesday (5), Valor newspaper released the information that, in recent months, the Shopee shopping app has opened five new distribution centers in Brazil with the aim of improving shipments and reducing delivery times. Shopee, which is based in Singapore and owned by Sea Ltd, has been one of the most downloaded apps in Brazil since its launch in 2019.

New Shopee Distribution Centers

According to Shopee, the new distribution centers are located in the cities of Campinas (SP), Contagem (MG), Ribeirão Preto (SP), Santana do Parnaíba (SP), and São João do Meriti (RJ).

Shopee needs a robust distribution system, as the app has a high volume of low unit price item sales, representing a greater turnover of thousands of products per day.

In May, the company beat quarterly sales expectations, especially given the strength of its core e-commerce operations and digital payments business.

App sales decline

However, as far as there is growth in the country, Shopee’s results are currently well below those recorded in 2020 and part of 2021, the peak period of the Covid-19 pandemic.

After a long period of triple digital revenue growth and expansion into new markets such as Mexico, Spain and South Korea, Shopee’s growth has slowed as the pandemic-fueled boom in e-commerce and digital entertainment wanes.

Shopee announced, in March of this year, the departure of France and India. High costs and supply chain problems added to the company’s problems. Among them, the depreciation of the stock.

dissatisfied users

In early June, many users lost patience with the changes to the online store and took to Twitter to express their displeasure, especially with the end of free unlimited value shipping. In fact, some users noted the beginning of Shopee’s operations in the country, where not only free shipping was offered, but also 70% discount on various products.

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Photo: Solastre Solastre / shutterstock.com