- Shopee’s in-house logistics arm, SPX Express, drives record Q1 revenue of $2.7B.
- Analysts view SPX Express as a significant competitive advantage for Shopee.
- However, Shopee faces challenges from rivals and needs to achieve sustainable cost control.
Shopee, the ecommerce platform owned by Sea, recently posted a record-high quarterly revenue of US$2.7 billion for Q1 2023.
Investors say: “we like what we see!”
The company credits much of this success to its in-house logistics arm, SPX Express, which now delivers over half of Shopee’s orders in Asia and 70% in Brazil. This has led to faster deliveries and improved customer experience.
Analysts and industry experts view SPX Express as a significant competitive advantage for Shopee. Barclays analysts believe this in-house capability allows Shopee to have the lowest delivery costs among its peers while providing superior customer experiences.
As SPX Express grows, it could potentially reap even more cost benefits.
Battling rivals and the profitability monster
Despite the logistics triumph, Shopee faces challenges from rivals Lazada and TikTok Shop. To defend its market share, Shopee doubled its sales and marketing costs in Q1, resulting in a loss.
Investors seem to be tolerating these losses for now, but achieving sustainable cost control through logistics efficiency will be crucial for Shopee’s long-term success.
To read the original article: https://www.techinasia.com/shopees-latest-trump-card-bearing-fr
