Sea Stock Rises 2.6% Premarket as Sea's Shopee Opens New Distribution Center in Brazil

Reuters2023-11-02

Shopping app Shopee has opened a new distribution center in Brazil, the second-largest of the nine it owns in the country, the company said on Wednesday.

Another new that may grab investors’ attention is that Indonesia will exclude books, films, software and music from its ban on imported products below $100 on e-commerce platforms.

Sea Stock rises 2.6% in premarket trading.

Shopee's new distribution center will be located in Guarulhos, near the city of Sao Paulo, and will be the second in that region, according to the firm.

Shopee, owned by Singapore's Sea, established a marketplace in Brazil in 2020 in its first foray outside of Asia and now claims over three million local merchants in the country who account for more than 90 per cent of the firm's sales nationally.

"The opening of the new space aims to increasingly improve the experience of Brazilian consumers and sellers by optimizing processes from product collection to delivery," Shopee said in a statement.

In addition to the nine distribution centers, the company has around 100 smaller logistics hubs and around 1,400 pick-up and delivery points, where sellers leave their products to be delivered to customers.

Indonesia since September has banned imports of any product worth below $100 via e-commerce platforms. The exceptions for certain goods, such as books and films, will soon be issued by the trade ministry, Economic Affairs Minister Airlangga Hartarto said in a statement.

The Southeast Asia's nation, with its tech-savvy population of more than 270 million, is a major market for regional e-commerce firms such as Sea's Shopee and Alibaba's Lazada.

The measure also came after Indonesia banned e-commerce transactions on social media platforms in September, a major blow to short video app TikTok, owned by China's ByteDance.

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Comments

  • bullChew
    2023-11-02
    bullChew
    SE not just operate in South East Asia, it is expanding outside SEA such as Brazil, India etc.
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