Sea(US:SE) Jin Tou Wang·2025-12-25 09:26Core Insights - The Southeast Asian e-commerce market is experiencing rapid growth, driven by a young population with strong consumption intent and low savings, presenting significant opportunities for cross-border merchants [3][10] - Shopee's full-service model addresses the challenges faced by merchants in compliance, product selection, and operations, allowing them to focus on supply chain management and product offerings, thereby reducing costs and increasing profit margins [3][5] - The newly launched "Shopee Full-Service Collection Service" aims to optimize the first-mile logistics, providing substantial logistics cost subsidies and improving delivery efficiency for merchants [6][9] Market Potential - Southeast Asia has a population of approximately 680 million, with 70% under the age of 30, making it a core driver of online consumption [3] - The e-commerce market in this region is expected to double in sales from 2024 to 2030, creating vast opportunities for cross-border merchants [3] Shopee's Full-Service Model - The full-service model is designed to systematically address merchants' challenges in compliance, product selection, and operations, enabling them to streamline processes and focus on their strengths [3][5] - Merchants can choose between VMI (Vendor Managed Inventory) and JIT (Just In Time) models to flexibly expand their market presence [3] Logistics Optimization - The "Shopee Full-Service Collection Service" integrates industry resources to reduce logistics costs and improve delivery times, with subsidies of up to 40% based on merchant levels [6][8] - The service enhances logistics efficiency, achieving next-day delivery in the Pearl River Delta and 48-hour delivery in the Yangtze River Delta [8] Risk Mitigation and User Experience - The service includes official logistics compensation guarantees, covering up to 1,000 yuan for lost or damaged goods, thus reducing potential risks for merchants [8] - The shipping process is designed to be user-friendly, with automatic deduction of shipping fees in the next payment cycle, simplifying financial operations for merchants [8] Growth and Support Initiatives - Shopee's full-service business has seen explosive growth in 2024, with total orders increasing by over 75 times year-on-year [9] - The platform offers a range of support initiatives, including the "Star Merchant" support plan and new product incentives, to empower merchants throughout their growth journey [9][10] Strategic Recommendations - Factories and integrated trade merchants should leverage Shopee's full-service policies to lower barriers for exporting Chinese goods and enhance their competitive advantages in overseas markets [10] - By observing market trends and utilizing services like collection, merchants can effectively convert their resource advantages into substantial market outcomes in the vibrant Southeast Asian and Latin American markets [10]