Of the e-commerce platforms that have made substantial gains during the pandemic, Shopee stands out for its savvy marketing and mobile-first strategy that have cemented its position as the leading e-commerce provider in several markets, including Taiwan.

In view of the continuously evolving e-commerce market, as well as Taiwan’s and the world’s gradual movement toward coexisting with the virus, Shopee is promoting three major sales enablement trends for the second half of 2022: consumer protection, customer relationship management (CRM), and retail media advertising. By doing so, Shopee will continue helping brands expand their digital footprint and increase their order conversion volume.

Safeguarding consumers

As online shopping has been on the rise, e-commerce platforms have vied to dominate the market. Yet as the number of choices increases, consumer rights protection has become a key factor in online purchasing decisions.

This year, in addition to Shopee Mall’s three major consumer guarantees of a 15-day return period, return policy, and product authenticity, Shopee Mall has also expanded to include more than 600 Official Stores (品牌旗艦店). Shopee Mall’s order volume has continued to increase, and brands that are labeled as an Official Store saw sales revenue of roughly double that of regular e-commerce merchants.

Furthermore, Shopee’s safe return mechanism has optimized the shopping experience for consumers. After the service was extended to all Shopee sellers in March this year, the average processing time for returns fell by 20% within two months. With these new measures, consumer trust in Shopee has markedly increased.

Managing customer relations

In the wake of the pandemic, many brands have begun carrying out digital transformation strategies, while an increase in online purchasing options has led to a drop in brand loyalty. Businesses have therefore begun asking how they can continue to attract consumer attention. A growing number of companies are now investing in the development of Customer Data Platforms (CDP) to better understand the interaction between customers and brands, thereby enhancing the customer experience and building loyalty.

In order to create win-win situations for both buyers and sellers, Shopee has created a brand membership system. This rewards program allows brands to enjoy the basic functions of a CDP, master the purchasing process, and understand customer needs. With these perks, brands can provide exclusive offers and services, encouraging first-time buyers to become loyal customers.

According to statistics compiled by Shopee, since the system’s establishment, the repeat purchase rate for members has reached as high as 50%. Additionally, the number of brands joining the system in Q2 2022 increased sixtyfold from the same period last year, and order volume has grown by a considerable margin. This is a clear sign that CRM not only strengthens the connection between brands and consumers, but it also increases growth momentum and improves brand performance.

Retail media advertising

One advantage of using retail platforms is their large troves of consumer data. Retail media advertising has thus emerged as a salient trend, with Forbes reporting that the scale of such advertising in the U.S. is expected to exceed US$50 billion in 2023. Taking advantage of the industry’s foresight, Shopee developed its own retail media as early as 2020. The company lists three major advantages of retail e-commerce media:

•           E-commerce platforms possess first-party data: Shopee has built-in search, dynamic, live broadcast, game, and sales data sufficient to create a closed-loop marketing strategy. In addition to a one-stop shopping experience, the platform also offers a variety of interactive and entertaining content.

•           Attribution systems are integrated into the backend: Shopee’s “Brand Portal” allows brands to track store and external advertising performance in one platform, which can help them expand their e-commerce business on Shopee.

•           Access to onsite data: Consumption patterns are unpredictable; brands thus need to be proactive in their sales and marketing strategies. To help brands effectively meet the needs of consumers, Shopee launched Shopee X Facebook Ads and Shopee X Google Ads, allowing brands to use de-identified consumer data for advertising purposes.

Brands are increasingly making good use of Shopee’s retail media advantages, gaining insight into the search intent and shopping journeys of consumers through data, improving the effectiveness of their advertising, and making e-commerce an indispensable key to their success.