December 5, 2023

A banner photo of Shopee, the e-commerce arm of Sea Ltd, at its Singapore office, March 5, 2021. REUTERS/Edgar Su

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São Paulo (Reuters) – Singapore’s shopping app Shopee, owned by Sea Ltd (SE.N), has opened five new distribution centers in Brazil in recent months to improve shipments and reduce lead times, Brazilian newspaper Valor reported on Tuesday. .

Shopee has become one of the most downloaded e-commerce apps in Brazil since its launch there in 2019, drawing users into its low-cost market. Read more

The company told Valor that the new centers are located in the cities of São João de Merrete, Campinas, Riberão Preto, Contagim and Santana de Parnaiba.

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The report said Shopee has a large volume of sales of low-price merchandise, which means more turnover of thousands of products per day that require a robust distribution system.

In mid-May, the company beat quarterly sales estimates and posted a smaller-than-expected quarterly loss, driven strongly in its core e-commerce operations and digital payments business. Read more

After a meteoric run in 2020 and part of 2021, with triple digital revenue growing in several quarters and expanding into new markets including Mexico, Spain and South Korea, offshore growth waned as the pandemic-fuelled boom in e-commerce and digital entertainment waned.

In March, the company announced it was pulling out of India and France, while rising costs and supply chain issues added to its problems, sending Sea’s shares down 70% this year.

Shopee did not immediately respond to a Reuters request for comment.

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(Stephen Grattan reports) from São Paulo. Editing by Jean Harvey

Our criteria: Thomson Reuters Trust Principles.

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