Singaporean shopping app Shopee, owned by Sea Ltd, has opened five new distribution centers in Brazil in recent months to improve shipping processes and reduce delivery times, Brazilian daily Valor reported on Tuesday .
Shopee has become one of the most downloaded eCommerce apps in Brazil since its launch there in 2019, drawing users to its low-cost marketplace.
The company told Valor that the new centers are located in the cities of Sao Joao do Meriti, Campinas, Ribeirao Preto, Contagem and Santana do Parnaiba.
Shopee has a high volume of sales of low unit price goods, which means a higher turnover of thousands of products per day that requires a strong distribution system, according to the report.
In mid-May, the company beat quarterly sales estimates and posted a lower-than-expected quarterly loss, boosted by the strength of its core e-commerce and digital payments operations.
After a meteoric run in 2020 and part of 2021, with several quarters of triple revenue growth and expansion into newer markets including Mexico, Spain and South Korea, Sea’s growth slowed as the trade boom slowed. electronic and digital entertainment fueled by the pandemic.
In March, the company announced it had pulled out of India and France, while rising costs and supply chain issues complicated matters, sending Sea shares down 70% this year.
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