With Shopee’s Entry, India’s E-Commerce Market Will Become More Competitive

After its successful expansion in Latin American countries - Chile, Mexico, and Colombia in early 2021, the Singapore-headquartered Sea’s Shopee is planning to enter India. In August, the e-commerce giant shared a video on Youtube that said ‘’Shopee is coming to India’’. In that video, the brand also promised that there would be free shipping and no commission fees for sellers and buyers. 

According to Linkedin posts, Youtube videos, and job postings, Shopee has launched its recruitment campaigns for vendors to sell on ‘’Shopee India’’. With these reports, everybody is expecting Shopee to start its business in India soon, as there is no official news on the launch date or anything. 

With India’s e-commerce market is estimated at $64 billion in 2020 and is expected to reach $200 billion by 2027, various e-commerce businesses are trying to grow their business in India. Shopee needs to be cautious about its expansion as India’s e-commerce market is mainly dominated by Amazon and Flipkart. Even Flipkart is planning to invest $2.5 billion to expand its logistics network for better and faster shipments. Other Indian brands like Reliance Industries’ JioMart and Tata Group’s Tata Digital also have a stronghold in the market. 

Sea Group has tasted success in India through its Free Fire game. This game is considered the highest-grossing mobile game in the country. The $172-billion Southeast Asia group has successfully launched its business in Chile, Colombia, and Mexico after being the most downloaded app in Brazil. Interestingly, after its launch in late 2019, Brazil has already become the biggest market for Shopee. The country could even overtake Indonesia as the biggest market by active monthly users. 

Currently, Shopee is operating in countries like Singapore, Taiwan, Indonesia, Vietnam, Thailand, Malaysia, the Philippines, and above mentioned Latin American countries. The brand is already a dominant player in the Southeast Asian market. According to some market researchers, Shopee’s global revenue for the first quarter of 2021 was roughly $1.2 billion. 

With no official dates on the launch in India till now, Shopee’s entry will bring some competition in the e-commerce industry. And, no shipping charges and no commission fees for sellers and buyers will also attract consumers towards Shopee. But Amazon and Flipkart have been in India for a long time now; they have completely understood the market and know how to deal with challenges. Most importantly, these e-commerce giants have introduced various plans and programs that are beneficial for small and medium-sized businesses. Shopee needs to introduce some interesting plans for sellers and buyers to gain their trust.