Shopee opens five new distribution centres in Brazil

Shopee opens five new distribution centres in Brazil

To improve shipping processes and cut lead times.

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Singaporean shopping app Shopee, owned by Sea, has opened five new distribution centres in Brazil in recent months to improve shipping processes and cut lead times, Brazilian newspaper Valor reported.

Shopee has become one of Brazil's most-downloaded e-commerce apps since its launch there in 2019, drawing users to its low-cost marketplace.

The company told Valor that the new centres 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 greater turnover of thousands of products per day requiring a robust distribution system, the report said.

In mid-May, the company beat quarterly sales estimates and posted a smaller-than-expected quarterly loss, driven by strength in its core e-commerce operations and digital payments business.

After a meteoric run in 2020 and part of 2021, with multiple quarters of triple-digital revenue growth and expansion into newer markets including Mexico, Spain and South Korea, Sea's growth dwindled as the pandemic-fuelled boom in e-commerce and digital entertainment shrank.

In March, the company announced it had pulled out of India and France, while rising costs and supply chain issues added to its troubles, driving Sea shares 70 percent lower this year.

Shopee did not immediately respond to Reuters' request for comment.

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