The year-end shopping season has begun, with cross-border e-commerce platforms preparing for their annual test. While consumers eagerly await promotions, rising logistics costs have become a growing concern for sellers. This analysis focuses on Shopee's platform, examining top-selling categories during its 9.9 promotion and exploring how platforms and merchants are adapting to increased shipping expenses.
Rising Logistics Costs: A Dual Challenge
Recent reports confirm significant increases in cross-border shipping expenses. Multiple e-commerce platforms including Taobao and Shopee have adjusted their shipping policies to address mounting logistics pressures. Taobao has discontinued free air shipping for certain products while increasing air freight rates. Shopee has similarly notified sellers about revised shipping cost allocations.
Specifically, Taobao removed its "Free Air Shipping to Singapore for Orders Over RMB 299" section on August 25, replacing it with a sea shipping alternative. Earlier this year, the platform implemented modest price adjustments for official direct air shipments to Singapore, increasing rates by approximately 5-6%.
Shopee's adjustments, effective September 12, modified seller-paid shipping fees for standard delivery services. Previously, sellers paid a flat rate of S$1.51 for items under five kilograms. The new structure introduces tiered pricing: S$1.49 for parcels under one kilogram and S$2.31 for one-to-five kilogram shipments.
Platforms and logistics providers are implementing various strategies to mitigate these challenges. J&T Express emphasized maintaining service quality while improving operational efficiency rather than passing costs directly to consumers. Lazada continues offering shipping rates starting from S$0.60 while promoting free shipping vouchers.
Shopee's 9.9 Promotion: Top Performing Categories
Despite logistical challenges, Shopee's 9.9 shopping event demonstrated strong performance across several categories. Health and beauty products, home and living items, and mobile accessories emerged as top sellers. Notably, face masks remained among the most purchased items despite relaxed government regulations, suggesting sustained health consciousness among consumers.
Live commerce continued driving platform growth, with Malaysian users spending over two million hours watching Shopee Live broadcasts during the promotion period. Platform representatives highlighted significant sales growth achieved by local merchants during the event.
Market Variations: Insights from Indonesia
Consumer preferences varied significantly across markets. In Indonesia, beauty products dominated purchases from micro, small, and medium enterprises (MSMEs) during the promotion's peak day. Facial cleansers and mascaras showed particularly strong performance. Home appliances also gained popularity, with portable blenders and bedding becoming preferred MSME products.
Shopee Indonesia emphasized the event's role in supporting small businesses while delivering value to consumers through special promotions and discounts.
European Expansion: Shopee's Growth in Poland
Beyond Southeast Asia, Shopee demonstrated notable progress in European markets. Data from Mediapanel Gemius Polska revealed Shopee as the only major e-commerce platform in Poland to experience increased traffic during August, growing from 9.87 million visits in July to 10.18 million.
This contrasted with traffic declines at competing platforms including Allegro, AliExpress, and Amazon Poland. Shopee's growth suggests its European expansion strategy may be gaining traction, though maintaining momentum in the competitive regional market will require continued innovation.
Outlook and Challenges
The 9.9 promotion results and European growth demonstrate cross-border e-commerce's continued vitality. However, persistent logistics cost increases underscore ongoing industry challenges. For sellers, optimizing supply chains and enhancing product competitiveness will prove crucial. Platforms must balance merchant support with consumer experience improvements to sustain growth.
As the industry evolves, adaptability and innovation will remain critical for navigating an increasingly complex global e-commerce landscape.