The Impact of the Red Sea Crisis on Ecommerce and Shipping
The ongoing conflict in the Red Sea has significantly impacted global shipping routes, leading to severe congestion at ports in Malaysia and Singapore. The blockade has caused a surge in shipping prices, increasing costs by more than 1.5 times the usual rate. This escalation adds further strain on sellers already grappling with various market challenges.
Shopee Remarkable Turnaround
Shopee has managed a significant turnaround in its sales performance. Sales soared to an impressive $1.8 billion in May. With the upcoming Haji celebrations in June, there has been a notable increase in consumer spending as many people prepare to upgrade their homes or move into new residences.
TikTok’s Steady Recovery
TikTok also saw a recovery, with sales reaching $900 million. While this figure falls short of the anticipated $1 billion mark, it reflects a steady rebound. The slower growth compared to the Hari Raya season suggests a more conservative consumer spending pattern.
What’s New in Ecommerce This Month
Shopee Direct Selling Model to Singapore
Shopee has introduced a direct selling model allowing Malaysian sellers to sell directly to Singaporean consumers. This move is expected to stir complaints among Singaporean sellers due to the lower selling costs for Malaysian counterparts. However, the higher costs associated with cross-border shipping for heavy items may mitigate some concerns.
Shopee Annual Seller Summit
Shopee will be hosting its annual Seller Summit on June 27. This event is an excellent opportunity for sellers to gain insights into Shopee’s plans for the second half of the year. It’s a must-attend for those looking to stay ahead in the competitive ecommerce landscape.
Overcoming Fulfilment Challenges
For sellers facing difficulties due to the shipping congestion, outsourcing fulfilment services can be a viable solution. Our fulfilment services are available starting from as low as RM0.10, offering a cost-effective way to manage logistics and ensure timely deliveries.
