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Shopee says it doesn’t worry about taxation and plans to increase investments to speed up deliveries

The company says it supports government initiatives that help connect domestic retailers to Brazilian consumers; operations in the country are still at a deficit, but losses per order have narrowed in recent quarters; see evolution

A Shopee stated that the measure approved on Tuesday 28thfor the House of Representativeswhich establishes a rate of 20%. tax In import for products up to $50 is not a cause for concern for the company. According to Shopee’s marketing and growth leader, Felipe Piringer, the focus in running the online platform today is local operations, despite being based in Singapore.

Piringer says that 90% of sellers on the platform are Brazilian and that, of the products sold by Brazilian retailers on Shopee, 85% are of domestic origin. “We look at the taxation of imported goods with kind eyes. Shopee is focused on the local ecosystem, focused on connecting millions of Brazilians. Any government measure that supports this, that helps us develop it here in Brazil, we are for it.”

According to him, consumers who liked to buy an imported product or used applications that focus more on imported products will find products from Brazilian sellers with similar qualities, at similar prices, with free shipping on Shopee.

Despite the taxation, the Shopee says it will focus its efforts on investments to increase the speed of delivery of products purchased in the app. Today, the company has 11 distribution centers in Brazil and 100 product distribution hubs to serve the domestic market.

Sao Paulo, Minas Gerais and Rio de Janeiro are respectively the states where Asian products are sold the most. In total, the company has more than 100 million products advertised by 3 million sellers. For deliveries, the platform has a network of 20,000 partner drivers.

At the moment, one of the company’s priorities is to speed up deliveries in the north of the country, where Shopee recently opened a logistics hub. From there the stored products are brought directly to the buyer’s home. The strategy is also used by Argentine competitor Mercado Livre in the Northeast.

In 2020, the company started operations at the new logistics hub in Bahia, the first to be installed in the region. In August 2023, the market announced the opening of a second distribution center, this time in Pernambuco, which is expected to begin operations in the first half of 2024.



Fight against piracy

The company also says it maintains efforts to combat piracy. In 2022, Anatel seized approximately 2 thousand unapproved products, including mobile phones and watches, with a total estimated value of R$ 53 thousand. The operation was carried out in the company’s distribution centers in the Sao Paulo metropolitan region, Shopee’s main market in the country.

To avoid the sale of pirated products, it has brought official brands to its platform. Names such as Motorola, Xiaomi, Reserva and Hering integrate more than 500 official stores into the app.

Finance

Controller of Shopee and gaming company Garena (responsible for the Free Fire title), Sea closed last year with a net profit of $162.7 million, reversing a loss of $1.7 billion recorded in 2022. It is It was the first time the company reported an annual profit since going public in New York. Sea’s annual revenue grew 5% to $13 billion. Sea’s e-commerce business, represented by Shopee, reported revenue of $9 billion in 2023, up 23.5% from 2022.

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