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OVERVIEW OF SHOPEE VIETNAM IN THE E-COMMERCE MARKET

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OVERVIEW OF SHOPEE VIETNAM IN THE E-COMMERCE MARKET

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Launched Shopee University to train sellers

Introduced Shopee Mall (official brand stores, originally in SEA)

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Deployed ShopeePay (e-wallet) and Shopee Guarantee to increase buyer trust

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Opened a large HQ center (2019), invested in logistics, livestream shopping, and long-term Shopee Mall programs (2024)

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According to YouNet ECI / Statista

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Held around 71.4% of GMV

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Followed with 22–23.2% of GMV

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Had around 7.6% of GMV

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Had around 1% of GMV

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Shopee's revenue in Q1/2024 reached VND 62.38 trillion (~$2.49 billion), up 16.1% year-over-year.

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Estimated 78.5 million users in Vietnam (2024).

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Age: Mainly 18–35, younger and active generation

Regions: Not only big cities (Hanoi, HCMC), but also rural and suburban areas like Binh Duong, Da Nang, Nam Dinh, etc.

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Shopee remains dominant, far ahead of TikTok Shop. TikTok is strengthening its position, while Lazada and Tiki are losing ground.

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This shows that Shopee has wide reach across both urban and rural regions.

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• Vietnam’s total e-commerce GMV in 2024 increased 40% to $13.8 billion, exceeding the expected $25 billion target with 20% market growth.
• Shopee accounted for $9.3 billion GMV (66.7%) in 2024.

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Shopee plays a major role in driving the market's overall growth.

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Encourage cashless payments, e-commerce, and logistics reform

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Growing middle class (~13 million), high internet/smartphone penetration

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Livestream shopping and short videos help Shopee engage young users

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Shopee's Transition from C2C to a Hybrid C2C/B2C Model and the Benefits It Brought

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Shopee's Transition from C2C to a Hybrid C2C/B2C Model and the Benefits It Brought

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Shopee initially operated under a C2C (Customer-to-Customer) model, where users could buy and sell products directly with each other. However, Shopee shifted to a hybrid C2C/B2C (Business-to-Consumer) model to combine products from individual sellers and large brands

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Shopee was able to attract large brands and offer authentic products, thus expanding its product portfolio

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In addition to customers buying from individual sellers, the B2C model attracted customers seeking branded products with guaranteed quality

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Shopee can maintain innovation and creativity in its product catalog by combining both C2C and B2C

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Shopee Mall is a feature on Shopee where large brands and retailers (like Samsung, Unilever) can sell authentic products.

Shopee Mall is not just an online selling space but also offers consumers a safe shopping experience with consumer protection policies and a commitment to product quality.

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Shopee Mall accounted for 59.22% of Shopee's revenue in 2022.

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Ensured product quality: Shopee Mall focuses on well-known and high-quality brands, attracting customers who seek authentic products.

Strong advertising strategy: Shopee Mall is heavily promoted through large marketing campaigns, creating trust and attracting a large customer base.

Consumer protection policies: With refund policies and payment protection, Shopee Mall offers peace of mind for consumers

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Customer Segments in Vietnam Reflected by the Top 3 Product Categories

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Customer Segments in Vietnam Reflected by the Top 3 Product Categories

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This reflects the demand of young customers, particularly Gen Z and Millennials, who are interested in beauty and health care. This group is easy to reach with online products.

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Reflects the needs of women aged 18-35, especially Gen Z and Millennials, who enjoy shopping online for diverse and stylish products.

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Reflects the needs of young families, particularly customers aged 25-45 who are looking to upgrade their living space.

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The Role of Shopee's Low-Priced Strategy and	High-end product strategy in Balancing Profit

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The Role of Shopee's Low-Priced Strategy and	High-end product strategy in Balancing Profit

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Shopee offers products priced under 100,000 VND to attract budget-conscious customers and daily-use products.

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Shopee introduces premium products priced above 300,000 VND from big brands to attract high-income customers seeking quality products.

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Increase transaction volume and expand market share.

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Grow profits from large brands while maintaining product diversity.

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Strategy to Attract Large Brands (Samsung, Unilever) to Shopee Mall

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Strategy to Attract Large Brands (Samsung, Unilever) to Shopee Mall

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Shopee offers specialized sales support packages for large brands, including optimizing stores, free advertising, and market analysis tools.

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Shopee ensures large brands with consumer protection policies and product quality guarantees.

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Shopee provides services to support advertising, sales, and logistics for large brands, helping them expand their online markets effectively.

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The Impact of Shopee Guarantee on Customer Trust and Loyalty

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The Impact of Shopee Guarantee on Customer Trust and Loyalty

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Increased reliability: Customers feel more confident shopping online knowing they won't lose money if the product doesn't match the description.

Long-term trust: When customers feel protected, they are more likely to return for future purchases, enhancing brand loyalty.

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Creates a payment protection system that ensures customers only pay when they receive products that meet their expectations.

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SHOPEE’S BUSINESS MODEL AND PRODUCT STRATEGY

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SHOPEE’S BUSINESS MODEL AND PRODUCT STRATEGY

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History and development of Shopee in Vietnam

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History and development of Shopee in Vietnam

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Shopee officially entered the Vietnamese market in 2015, originating from Garena (now Sea Ltd) in Singapore.

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Shopee's role in the development of Vietnam's e-commerce industry

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Shopee's role in the development of Vietnam's e-commerce industry

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As one of the biggest shopping events of the year, Shopee launched a large-scale multi-channel media campaign, offering millions of discount vouchers, free shipping, and gifts to attract users.

Participating sellers received support in smart pricing strategies, advertising, and customer service to drive traffic and boost sales.

Shopee hosted extended interactive livestreams featuring influencers to help users hunt vouchers and enhance real-time engagement.

Deep discounts and free shipping up to 500,000 VND/day for orders from 100,000 VND, with special check-in hours (0h, 9h, 12h, 21h) designed to create urgency and stimulate purchase behavior.

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As Shopee’s year-end mega event, 12.12 featured aggressive promotions and exclusive ShopeePay payment incentives.

ShopeePay introduced attractive offers, including:

Voucher combos worth up to 120,000 VND

Coin cashback up to 1.2 million Shopee Coins

50% off for in-store “Scan & Pay” (capped at 120,000 VND)

Multiple FreeShip Xtra codes and wallet-exclusive vouchers

Users enjoyed exclusive livestream-only deals and interactive voucher hunts.

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Flash Sale is a short-term promotion or limited-stock event designed to create urgency and excitement among buyers.

Shopee organizes Flash Sales during fixed “golden time slots” (midday, evening, midnight) aligned with consumer shopping habits.

Sellers can either create their own Flash Sales or participate in official Shopee-led campaigns.

These campaigns are enhanced by discount vouchers, countdown reminders, and one-click checkout, offering a seamless and efficient buying experience.

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During Vietnam’s 2023 11.11 event, Shopee recorded a 44x increase in product sales via Shopee Live and 603 million views throughout the super sale event.

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According to Shopee’s report, Vietnamese users spent over 6.4 million hours watching livestreams during the 2023 12.12 event, resulting in 26 million products sold during the birthday sale.

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Shopee’s flash sales significantly improve conversion rates, especially in electronics and consumer goods, encouraging instant buying behavior.

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Features like “Shake & Win” and Shopee Farm increase user engagement by encouraging daily app visits, longer time spent on the platform, and more purchases through rewards like coins and vouchers. These games are fun, promote user retention, and foster brand loyalty.

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A study found that Shopee Games account for 32.4% of the variance in user loyalty, highlighting gamification’s strong impact on customer retention.

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How it works: Products appear at the top of search results; sellers bid on relevant keywords.

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How It Works: Products appear in “Similar Products” or user recommendation sections.

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How It Works: Products are automatically promoted by Shopee in categories or on the homepage

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Increasing product visibility, reaching the right audience, and boosting conversion rates through keyword and behavior targeting.

Sellers can also flexibly manage budgets and only pay per click, enabling smaller shops to compete with bigger ones by securing prominent placements.

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Analysis by UpBase shows that Shopee Ads play a crucial role in revenue growth, especially during promotional campaigns and livestreams.

Optimizing ad strategies can help sellers achieve 20–30% revenue growth.

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By using real-time video formats on social media or e-commerce platforms, sellers can showcase products and interact directly with customers, boosting trust and purchase decisions.

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Combining shopping and entertainment, livestreams play a key role in creating engaging and interactive shopping experiences through promotions and creative content.

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Shopee organized 9 million livestream sessions in 2024, attracting a total of 260 million watch hours across Shopee Live and Shopee Video.

The number of first-time buyers through Shopee Video increased by 101 times, and orders via this feature rose 185 times.

Shopee’s revenue reached USD 4.3 billion by Q3 2024, a 30% year-on-year increase, with livestreaming being one of the key drivers of growth.

Shopee supported over 350,000 local sellers in expanding to the ASEAN market, with monthly revenue from livestreams growing by 20–30%.

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Shipping Partners & Role of Shopee Express

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Shipping Partners & Role of Shopee Express

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Shopee collaborates with external partners such as GHN, GHTK, Viettel Post, J&T Express, and BEST Express to ensure nationwide delivery coverage.

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Quality Control: As an in-house courier, Shopee Express (SPX) easily controls delivery times — 1-3 days in major cities.

Cost Savings: The in-house system reduces reliance on third parties, optimizes resources, and lowers shipping costs.

Standardized Processes: SPX operates alongside modern hubs/shipping centers, integrating detailed operations.

Peak Season Speed: During largesales events (9.9, 11.11, etc.), SPX ensures quick handovers, scanning, andsorting to minimize congestion.

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Warehouse Infrastructure and Order Fulfillment Process

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Warehouse Infrastructure and Order Fulfillment Process

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Investment in Warehousing & Delivery Speed

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Investment in Warehousing & Delivery Speed

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Shopee has implemented several strategic investments in warehousing infrastructure to improve logistics efficiency and reduce delivery times.

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Automated warehouse in HCMC: Shopee launched its first automated warehouse in HCMC, enhancing sorting and order processing speed.

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Alliance with BW Industrial: Shopee partnered with BW Industrial to develop warehouses and distribution centers, expanding its logistics network and improving delivery speed.

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Shopee uses WMS to automate inventory storage, tracking, and transportation, enhancing efficiency and reducing errors in order processing.

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Shopee applies data analytics to forecast

demand and optimize inventory levels, improving the ability to fulfill orders on time.

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Order Processing from Warehouse to Customer – Shopee Vietnam

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Order Processing from Warehouse to Customer – Shopee Vietnam

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Based on actual sources (GHN, Eimskip, N&H Logistics…), the order processing procedure on Shopee includes

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Order Confirmation (within 30 minutes after the customer places the order, unless canceled)

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Order Confirmation (within 30 minutes after the customer places the order, unless canceled)

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The seller confirms the order through Shopee Seller Center → moved to "Awaiting Pickup."

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Sellers pack according to Shopee’s standards. If using Fulfillment by Shopee (FBS), Shopee takes care of everything from packing to shipping.

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Print the tracking number and shipping label, attach it to the package → keep a copy for the seller.

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Processing Cancellation Requests from Customers

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Processing Cancellation Requests from Customers

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The seller can accept/deny cancellations within 24 hours; otherwise, the system auto-cancels the order.

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Partners like GHN, SPX, and Viettel Post pick up as scheduled. Orders within the city are delivered on the same day, and other provinces/cities within 1-2 days.

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Handling Failed Deliveries / Order Cancellations

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Handling Failed Deliveries / Order Cancellations

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If delivery fails → items are returned to the shop or processed according to Shopee's policy (customer cancels, compensation).

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Free Shipping Policy - Saving VND 16 Trillion & Impact on Shopping Behavior

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Free Shipping Policy - Saving VND 16 Trillion & Impact on Shopping Behavior

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In 2024, Shopee launched a nationwide free shipping campaign, helping consumers save approximately VND 16 trillion during promotions and regular orders.

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Consumers are more proactive in ordering online, including lower-priced products, due to the “no shipping fee” mindset.

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To reach the free shipping threshold (usually VND 150,000–200,000), consumers tend to add more items to their cart, indirectly increasing revenue per customer.