In short term probably they ca

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Dazzling74
2024-08-13

In short term probably they can increase their revenue/profit, but in long term it's risky. I'm a Shopee seller and I know many sellers have left or plan to leave Shopee because of their high commission rate and stricter rules and regulations.

Sea Raises Seller Fees to Above TikTok, Temu to Lift Margins

Company is betting merchants won’t defect to new contendersQuarterly earnings out Tuesday will show if strategy workingSea Ltd.’s Shopee has raised the commissions it charges merchants in many core ma

Sea Raises Seller Fees to Above TikTok, Temu to Lift Margins

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PaladinSir
·2024-08-13
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it is more likely that sellers will have a presence in all platforms rather than pull out of Shopee because take rate is only after a sale. I mean if there is a sale and you can still make a profit, then why would sellers pull out of Shopee? it's not rental fee whereby you have to pay whether or not there is business.
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- Dazzling74:
  Not only the commission rate has increased, they’re implementing stricter rules and policies which is favouring buyers. It is becoming increasingly difficult for sellers to make profit in their platform. Due to the competitiveness most seller’s sales has dropped too.
  2024-08-14
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I'm a Shopee seller and I know many sellers have left or plan to leave Shopee because of their high commission rate and stricter rules and regulations.","highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":2,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/337751105061064","repostId":1156862002,"repostType":2,"repost":{"id":"1156862002","kind":"news","pubTimestamp":1723470702,"share":"https://ttm.financial/m/news/1156862002?lang=en_US&edition=fundamental","pubTime":"2024-08-12 21:51","market":"us","language":"en","title":"Sea Raises Seller Fees to Above TikTok, Temu to Lift Margins","url":"https://stock-news.laohu8.com/highlight/detail?id=1156862002","media":"Bloomberg","summary":"Company is betting merchants won’t defect to new contendersQuarterly earnings out Tuesday will show if strategy workingSea Ltd.’s Shopee has raised the commissions it charges merchants in many core ma","content":"<div>\n<p>Company is betting merchants won’t defect to new contendersQuarterly earnings out Tuesday will show if strategy workingSea Ltd.’s Shopee has raised the commissions it charges merchants in many core ...</p>\n\n<a href=\"https://www.bloomberg.com/news/articles/2024-08-12/sea-raises-sellers-fees-to-above-tiktok-temu-to-fatten-margins?srnd=homepage-americas\">Source Link</a>\n\n</div>\n","source":"lsy1584095487587","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; 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Its commission now exceeds its rivals’, with its fee in Thailand rising to as much as 13% in July from 10% previously, according to its website. TikTok charges as much as 8% and Lazada up to 10%, according to a JPMorgan report. The commissions are also known as take rates and are levied as a percentage of a product’s sale or transaction price.The fee hikes show that Singapore-based Sea feels secure in its own efforts to become a crucial partner to merchants, helped by the e-commerce pioneer’s broad user base and well established delivery services. Yet the strategy is risky — PDD Holdings Inc.’s Temu and ByteDance Ltd.’s TikTok have quickly gained users, and sellers could jump ship if they deem Sea’s services too pricey.With the company expected to report on Tuesday that it returned to profit in the second quarter, investors will want to see if its e-commerce arm has the power to raise fees without losing its market dominance. It now needs to prove it can accelerate growth in gross merchandise volume as well as pad its bottom-line after a ruthless cost-cutting drive helped it bolster its margins.US-traded shares of Sea jumped 1.2% in premarket trading Monday on the news of the fee increases.Shopee has been raising fees much quicker than before — twice this year for many of its core markets in Southeast Asia including Indonesia and Philippines, said Simon Torring, co-founder of e-commerce research firm Cube Asia. Competitors have also raised commissions, making it less likely for merchants to shift away from Sea.“Last year, we saw a constant trade-off between GMV growth versus profit,” said Torring, whose firm has closely tracked e-commerce commissions across the region. “This quarter’s earnings report could show investors that the rise in take rates have been accepted by sellers and, if it translates fully to the bottom line, that Southeast Asia e-commerce could be a profitable play.”A Sea representative declined to comment.After falling for two years, Sea’s volatile shares have gained 60% this year as investors assess its chances of warding off rivals and becoming sustainably profitable.Net income in the second quarter through June probably fell 82% to $60 million, according to the average of analysts’ estimates. That’s even as revenue is expected to have risen 20%. Shopee’s gross merchandise volume, or the value of goods sold, probably increased by about 24.7% from a year earlier. It is scheduled to report results on Tuesday before the US markets open.Sea’s Shopee leads Southeast Asia’s cut-throat e-commerce market, but new contenders are moving to the region of 675 million people where more and more shoppers are going online. Besides Temu and TikTok, Sea also faces competition from Shein and Alibaba Group Holding Ltd.’s Lazada.","news_type":1,"symbols_score_info":{"SE":1.1}},"isVote":1,"tweetType":1,"viewCount":827,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":["SE"],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":202,"xxTargetLangEnum":"ORIG"},"commentList":[{"id":338031785492640,"commentId":"338031785492640","gmtCreate":1723546384613,"gmtModify":1723546389777,"authorId":3569713264180526,"author":{"id":3569713264180526,"idStr":"3569713264180526","authorId":3569713264180526,"name":"PaladinSir","avatar":"https://static.tigerbbs.com/cab8fd813c652abf36d2c5f621d1fcaa","vip":1,"crmLevel":12,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":337751105061064,"objectIdStr":"337751105061064","type":1,"supId":0,"supIdStr":"0","prevId":0,"prevIdStr":"0","content":"it is more likely that sellers will have a presence in all platforms rather than pull out of Shopee because take rate is only after a sale. 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It is becoming increasingly difficult for sellers to make profit in their platform. Due to the competitiveness most seller’s sales has dropped too.","text":"Not only the commission rate has increased, they’re implementing stricter  rules and policies which is favouring buyers. It is becoming increasingly difficult for sellers to make profit in their platform. Due to the competitiveness most seller’s sales has dropped too.","html":"Not only the commission rate has increased, they’re implementing stricter  rules and policies which is favouring buyers. It is becoming increasingly difficult for sellers to make profit in their platform. Due to the competitiveness most seller’s sales has dropped too.","disclaimerType":0}],"verified":10,"allocateAmount":0,"commentType":"hot","coins":0,"score":0,"disclaimerType":0}],"hasMoreComment":true,"orderType":2}