In a surprising move that has sent ripples through the e-commerce industry, Shopee has announced the closure of its Polish operation, Shopee.pl, effectively ending its European market experiment. The decision comes just 16 months after the Southeast Asian platform entered Poland with ambitious growth plans.
An Abrupt Farewell: Shopee.pl's 16-Month Journey Cut Short
The official announcement revealed that Shopee.pl will cease operations on January 13, 2023, at 23:59. While customers can continue placing orders until that time, the platform will gradually wind down operations afterward, automatically processing any pending transactions.
The decision stunned both merchants and consumers, particularly given Shopee's remarkable traction in the Polish market. Recent data showed Shopee.pl attracting 10.88 million visits last November, ranking second only to domestic leader Allegro. The platform had surpassed 10 million users, becoming Poland's third-largest shopping destination after Allegro and Media Expert.
More impressively, the Shopee app achieved over 7 million downloads in Poland—outperforming global sensations like TikTok and SHEIN. As recently as December 2022, Shopee Poland's Business Development Director Michal Tykarski had outlined plans to launch brand zones and affiliate programs in 2023 to boost gross merchandise value (GMV), revenue, and parcel volume. Yet within weeks, these ambitions were abruptly abandoned.
Shopee CEO Chris Feng attributed the withdrawal to "macroeconomic uncertainties" clouding the European market's long-term prospects, while emphasizing greater growth potential in Asian and South American markets where the company will now concentrate resources.
Global Contraction: Economic Headwinds Reshape Expansion Plans
The Polish closure represents the latest in a series of strategic retreats for Shopee's global ambitions. During the pandemic's e-commerce boom, the Singapore-based company rapidly expanded beyond Southeast Asia, establishing footholds in Spain, France, and Poland. However, as inflation surged and pandemic-driven demand waned, operational challenges mounted.
Parent company Sea Limited's Q3 2022 earnings revealed slowing growth, with order volume and GMV increasing just 19.2% and 13.5% year-over-year respectively—marking significant deceleration from previous quarters. This prompted aggressive cost-cutting measures across Shopee's operations.
In October 2022, Shopee Poland reduced its workforce by approximately 10%, trimming teams across HR, finance, business development, product, and marketing. The company framed this as part of broader efficiency optimization efforts. Subsequent fee increases across multiple markets—including higher commissions, transaction charges, and shipping rates—further signaled financial tightening.
The retreat from Poland follows earlier exits from France (after just four months) and Spain (after six months), effectively concluding Shopee's European experiment. Similar contractions occurred in Latin America, where Shopee scaled back operations in Argentina, Chile, and Colombia while maintaining Brazil as its regional stronghold.
Strategic Refocus: Prioritizing Core Markets
Facing global economic volatility, Shopee's pivot reflects e-commerce platforms' growing emphasis on operational efficiency over expansion. By concentrating resources on high-potential core markets, the company aims to stabilize profitability amid challenging conditions.
Industry observers note that Shopee hasn't entirely abandoned European consumers, with potential plans to serve the region through cross-border e-commerce models. Meanwhile, its dominant positions in Southeast Asia and select Latin American markets continue providing stable revenue streams.
Shopee's strategic recalibration offers broader lessons for global e-commerce players. In uncertain economic climates, platforms must balance growth aspirations with disciplined market selection and operational efficiency—prioritizing sustainable profitability over rapid expansion. As Shopee's European chapter closes, the industry watches whether this leaner approach can weather ongoing macroeconomic storms while preserving opportunities for future reentry.