SAO PAULO (Reuters) – Singaporean procuring app Shopee, owned by Sea Ltd, has opened five new distribution centers in Brazil in current months to enhance delivery processes and reduce lead instances, Brazilian newspaper Valor reported on Tuesday.
Shopee has develop into one in every of Brazil’s most-downloaded e-commerce apps since its launch there in 2019, drawing customers to its low-value market.
The firm informed Valor that the new centers are situated in the cities of Sao Joao do Meriti, Campinas, Ribeirao Preto, Contagem and Santana do Parnaiba.
Shopee has a excessive quantity of gross sales of low unit value items, which suggests better turnover of 1000’s of merchandise per day requiring a sturdy distribution system, the report mentioned.
In mid-May the corporate beat quarterly gross sales estimates and posted a smaller-than-anticipated quarterly loss, pushed by energy in its core e-commerce operations and digital funds enterprise.
After a meteoric run in 2020 and a part of 2021, with a number of quarters of triple-digital income development and enlargement into newer markets together with Mexico, Spain and South Korea, Sea’s development dwindled because the pandemic-fuelled increase in e-commerce and digital leisure shrank.
In March, the corporate introduced it had pulled out of India and France, whereas rising prices and provide chain points added to its troubles, driving Sea shares 70% decrease this yr.
Shopee didn’t instantly reply to Reuters’ request for remark.
(Reporting by Steven Grattan in Sao Paulo; Editing by Jan Harvey)