SPECIAL REPORT

E-COMMERCE: INCREASE OF SHOPEE USAGE DURING COVID-19


E-commerce is one of the developments of technology that offer opportunities in business.
(Source: Unsplash / Igor Miske)

The development of e-commerce has increased a variety of new opportunities in businesses especially during the COVID-19. The pandemic that has plagued the country for almost two years has caused consumers to rely on e-commerce.


E-commerce or electronic commerce is a buying and selling process that is carried out through electronic mediums such as mobile applications and the internet.


According to Shopee career website, Shopee is Southeast Asia's and Taiwan's most popular e-commerce site.


It is a platform specialised for the area, launched in 2015, that offers customers a simple, safe, and fast online shopping experience with strong payment and fulfilment support.


Singapore, Indonesia, Malaysia, Thailand, Taiwan, Vietnam, and the Philippines were among the first countries to launch Shopee in 2015.


The advance of it has caused most businesses to shift to the concept of virtual technology especially during this hard time. Shopee is one of Malaysia's most well-known e-commerce sites.


Trading activities have increased dramatically as a result of the Shopee application especially when the country is affected by the pandemic. Limited movement is also the cause of the rise of e-commerce.


Business Insider stated Shopee Seller Centre is continually updated with new functions that make it easier for sellers to track and manage their sales performance, payments, inventories, and deliveries on Shopee.


Based on Payrecon website, Shopee is a Business-to-Consumer (B2C) marketplace where buyers and sellers can connect and sell their products. Also, it is much easier to list and find suppliers.


The user of the Shopee platform can directly provide services from the business to consumers who are the end user of their product.


Payrecon stated Shopee may assist sellers obtain visibility of their items and these marketplaces also receive the benefit of increased range of products without adding any new inventory since these online stores function as a bridge between sellers and customers.


Business Insider stated Shopee Seller Centre is continually updated with new functions that make it easier for sellers to track and manage their sales performance, payments, inventories, and deliveries on Shopee.


Shopee appears to be a better alternative at first glance, but if you are an honest seller, you may find it difficult to gain confidence in the eyes of your customers, as it does not filter out dishonest sellers seriously.


The research done by Mobile Action shows that Shopee has become the top shopping application in Malaysia on the IOS App Store and Google Playstore.


Shopee has become the top shopping apps in Malaysia.
(Source: Mobile Action)

Shopee application has opened the opportunity to all buyers and sellers to digitalise their business and grow their product in an online platform.


This application has made more businesses move their operations to a platform that is much easier as users use touchless transactions and interactions when dealing with buyers.


As a result, sellers can inform the buyer about the item in only one step.


This can help sellers and users themselves to be safe and contactless, especially during this pandemic.


Moreover, e-commerce reduces costs, which keeps sellers interested in selling online. Many sellers have to pay a large sum of money to keep their local stores open, particularly during the pandemic.


For example, they may be asked to spend extra money upfront for things like rent, maintenance, store design, and stock.


The Shopee platform has made the seller’s process of product development more thrifty because the seller does not have to focus as much on marketing. Also, the delivery charge is much cheaper than the other platforms.


According to The Malaysian Reserve website, Shopee is a less expensive e-commerce site that also takes less investment than running a local store. Small and medium-sized businesses (SMEs) need an e-commerce business to advertise their products and broaden their growth choices.


Individual and small-scale sellers who wish to make money but lack in necessities, start-up fundings might consider these options.


Raja Sofiya Kamaruddin, 21, is a full-time student and a part-time seller said during her interview with Berita DIMENSi she gained a lot of knowledge on how to make a website.


Raja Sofiya sells her product ‘Salakrunch’ on Shopee.

(Source: Twitter/@salakcrunchhq)


“I really look up to the Shopee platform because the interface that has been made is really good and easy to use.


“I also adore the Shopee platform on how the management team manages the platform until now Shopee has been really well known. Also, the team management always updates time by time to make customers and sellers shop on their platform.


“The website is user friendly to everyone who is new in online shopping,” she said.


Shopee Mall sellers receive commissions starting from three percent to five percent while overseas sellers receive commissions starting from five percent to six percent.


Not only for sellers, but buyers also gain benefits buying from e-commerce platforms, like Shopee. First, they can choose any product or service from Shopee even during this pandemic and have better options than they would have had if they went to a physical store.


Also, having the freedom to look at the offer without feeling pressured or stressed is invaluable.


The ability to save time is one of the main benefits of shopping online. In fewer than 15 minutes, customers may choose, buy, and pay for an online product.


Within a week, customers will be able to receive their items. If customers order heavier things, they should not worry. They will be delivered safely by the courier to their house.


“I chose Shopee as my main online shopping application because there are many choices of items that are easy to find. In addition, the price at Shopee is much cheaper than other malls.


One of the hardcore Shopee users, Hafizah Bukhori, 21, said in an interview via Whatsapp with Berita DIMENSi that the quality of item from Shopee tend to be good and has better price.


According to the Statista website, Shopee is the region's biggest e-commerce site in terms of average monthly active users and it is riding the wave. Especially these days when everyone is just sitting at home, limited telecommunications services and the internet are two of the most significant obstacles to e-commerce adoption.


It is because they offer a complete online shopping experience through a mobile app especially during this pandemic.


Aside from that, there are limits in terms of the quality of items traded. Wholesalers, traders, consumers, and buyers, in particular on Shopee, are all concerned about the quality of the products they are purchasing.


This is because businesses’ faith in the e-commerce concept has not yet reached a suitable level for them. For example, products bought from Shopee are returned. This is because marketplace courier firms have unreliable logistical and delivery concerns.


Return charges and the cost of product loss are incurred as a result of this and will heavily influence buyer-seller connections.


Customers who buy from sellers who do not use the e-commerce platform, will communicate with them through WhatsApp to make transactions and know with whom they are interacting with.


Before getting started in an online business, aspiring e-commerce operators should consider how they would provide customer service. Unfortunately, having excellent customer service is not easy for all e-commerce companies once it starts growing.


“The challenge of being an e-commerce user is that I have to deal with the attitude of sellers who do not inform me of the sold-out items. In addition, the items I ordered also arrived late.


“The seller also does not pack the goods safely and this also causes the goods sent to be damaged,” she added.


Every action carries its own set of risks for e-commerce, a well-planned and good management can lessen the risk that business owners may incur.


Owners should also be able to guarantee that users of their products or services are satisfied and the assistance from the government certainly encourages customers to buy online.


In conclusion, the usage of Shopee has rapidly increased during this pandemic and has become a widespread cultural phenomenon in the new daily lifestyle in Malaysia.


Shopee's usage among Malaysian.

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