Specialist
Former regional manager at Shopee Ltd
Agenda
- Market update – Shopee and Lazada
- Seller behaviour and willingness to pay
- Shopee Mall model and revenue extraction opportunities
Questions
1.
Can you give us an update on developments for Shopee and Lazada due to coronavirus, and a competitive analysis between these players?
2.
You mentioned the introduction of seller support across Shopee and Lazada, and the importance of SeaMoney within Shopee. Do you think that it’s a retention strategy to increase loyalty within the ecosystem rather than a play on acquisitions or to differentiate these players when new sellers want to onboard into e- commerce?
3.
Shopee’s Q1 GMV was USD 6bn , while revenue was around USD 300m-340m , but where do you think Shopee’s revenue ceiling is in Southeast Asia? Do you think that average order value, which was about USD 14 per order in Q1, is sustainable or could it grow further to around USD 20-25 by the end of 2020?
4.
Can you explain the GMV revenue ratio, the sustainability of that 5-6% GMV revenue ratio, as well as how the new normal of e-commerce could present a growth opportunity to Shopee?
5.
You mentioned that investment is crucial for Shopee. Is that investment in ecosystem infrastructure, in SeaMoney or other seller support? Could that hinder the monetisation timeline for Shopee?
6.
Can we define Shopee’s B2C and C2C strategies? A recent news report stated that Shopee will focus on B2C.
7.
How is Lazada or the other regional e-commerce players approaching B2C? Do these players focus more on branded sellers or on potential small sellers that could grow significantly in the region?
8.
Is the growth from B2C mainly from promotions or marketing or from organic growth, defining promotion as offering a discount or staging a campaign to attract sellers to onboard?
9.
Do you think that Shopee has a better seller retention strategy than Lazada, especially during the pandemic?
10.
Do you think the seller engagement on platforms is increasing due to the coronavirus pandemic? By engagement, I mean there could be more sales or transactions on the platforms. How do Shopee or other e- commerce platforms measure seller engagement? Is it purely based on the transaction amount?
11.
What is the role of an e-commerce enabler in accelerating the growth of B2C sellers? Do you think this is a good channel to onboard more sellers? Can we also define the customer profiles of the sellers using e- commerce enablers?
12.
Could you define a threshold for mid-sized sellers on Shopee’s platform?
13.
The role of an e-commerce enabler seems to be more mature in Southeast Asia, given the boost from the pandemic in addition to the market becoming more saturated. Do you think this channel will become the channel preferred by Shopee and Lazada for acquiring new sellers, and what kind of relationship or partnership do they have when they sell to sellers?
14.
The main revenue monetisation for e-commerce seems to come from logistics and potentially seller support, in the future. For logistics, you mentioned that e-commerce platforms and e-commerce enablers need to coexist, but do you think e-commerce platforms may face challenges with monetising sellers on logistics?
15.
Other countries such as the US or China have only one major e-commerce platform, or at least only one significant player that dominates the market. Do you think that Shopee or other e-commerce platforms may face difficulties in monetising seller support or monetising to provide more value-added services to merchants when they have these conversations with the e-enabler?
16.
As an e-enabler, are there any key differences between seller behaviour on Shopee and Lazada? For sellers, can we break down the SMEs and branded sellers?
17.
What percentage, approximately, of the transaction value or transaction amount are e-commerce players willing to pay for advertising, keyword search or the seller tools?
18.
What are the criteria for sellers to enter Shopee Mall, and are there any incentives for them to engage in Shopee Mall rather than the mass pool for marketplaces?
19.
Have you observed a healthy conversion from the B2C sellers in marketplaces to Shopee Mall? Given that there’s a lot of healthy growth from the sellers’ perspective, there should be a lot more sellers onboarding in Shopee Mall, but is that the case?
20.
Do you think Shopee can monetise better on the Shopee Mall sellers? What do you think that sellers receive in return? Do they get verification from Shopee so that they can be a branded seller?
21.
I understand that the Shopee Mall initiative is just to increase the branding of its sellers so that they can make more sales, and then Shopee gives sellers incentives to keep them within the platform. When do you think that Shopee can try to monetise the Shopee Mall, and what’s the expected timeline for that?
22.
Do you think that the new normal post-pandemic is a fantastic chance for Shopee and Lazada to accelerate their market shares or monetisation? Would you say that it’s a catalyst for that?
