Shopee is accused of ‘playing bad’: Giving a voucher forcing the seller to close the booth on Lazada, anyone who does not sign the ‘exclusive’ agreement will be ‘punished’

Tram Ho

TechinAsia newspaper stated that the e-commerce market in Southeast Asia is like a tug of war for sellers.

However, Shopee – the trading platform of the Sea group is being heavily criticized by its competitors for how they use it to win. Some data shows that competitors are at a disadvantage with Shopee’s tactics to attract sellers.

Shopee bị tố chơi xấu: Tặng voucher ép người bán đóng gian hàng trên Lazada, ai không ký vào thỏa thuận độc quyền sẽ bị trừng trị - Ảnh 1.

For example, Shopee suggests signing an exclusive agreement with the seller. Based on the terms of contract and WhatsApp conversations that TechinAsia has, competitors like Tokopedia and Lazada also offer “priority” deals with sellers, but Shopee goes beyond the line when require sellers to close their current store on other platforms.

“Shopee sends vouchers worth $ 459 to select sellers. The only condition is that they have to close stores on Lazada during the 9/9 shopping festival last year”, is information from TechinAsia.

According to this document, Shopee also outlined the penalties for the booths violating the terms of the exclusive agreement, including revoking not only the benefits of the agreement, but also removing shipping discounts or codes. free shipping or worse, prohibited from participating in marketing campaigns on the platform.

Shopee bị tố chơi xấu: Tặng voucher ép người bán đóng gian hàng trên Lazada, ai không ký vào thỏa thuận độc quyền sẽ bị trừng trị - Ảnh 2.

Shopee’s approach makes small retailers make a choice: Exclusively work with Shopee and benefit from free shipping or the slim hope that still can do well by maintaining Store on multiple platforms. However, most sellers do not want to choose to leave because they may experience reduced sales compared to competitors who benefit from Shopee’s policies.

While big brands have the ability to negotiate contract terms with exchanges, small traders are in a difficult situation.

“Shopee’s business combined with billions of dollars poured into the market has created a distorted ecosystem that harms small and medium businesses,” said a leader from an e-commerce company.

Shopee currently declined to comment.

Tokopedia Inna Chandika vice president said that their platform “does not force sellers to only operate on their own platform or prohibit sellers from using other sales platforms / channels temporarily or permanently”.

Lazada currently declined to comment. However, the TechinAsia source said the platform also does not prohibit merchants from closing stores on other platforms.

This is not the first time Shopee has been criticized for their strategy. In 2019, the company forced merchants to close stores on Lazada on December 12 if they wanted increased visibility on Shopee.

Shopee’s “Stronghold”

Although it entered the market relatively late compared to Lazada, Shopee quickly won the top position in the region after only 5 years. Spending heavily on advertising – spending in excess of $ 1 billion in 2020 is the main strategy for this success.

Currently, the above exclusive deals are specially implemented by Shopee in the three leading markets in the region: Indonesia, Malaysia and Vietnam.

Shopee’s strategy of effectively offering discount codes and freeships is to drive traffic and orders so they keep going.

Shopee bị tố chơi xấu: Tặng voucher ép người bán đóng gian hàng trên Lazada, ai không ký vào thỏa thuận độc quyền sẽ bị trừng trị - Ảnh 3.

The message is supposed to be Shopee’s message to partners opening for sale on other e-commerce floors with the content asking the sales account to stop selling its products on Lazada e-commerce floor.

For example, on an order for a ship price of 6.2 USD, a seller in Indonesia can receive 3.4 USD – which is over 50% of the shipping discount.

These numbers show why many sellers still choose to participate in Shopee’s exclusive program. “There are thousands of sellers who don’t want or feel unable to sell on other platforms because they lose subsidies.”

Shopee’s influence can give them an edge over sellers. Based on estimates, Shopee is leading in monthly active users, beating Bukalapak and Tokopedia in Indonesia and Sendo, Tiki in Vietnam.

But the sellers are also “very smart, they find their own way. To continue to operate multiple platforms, they use different store names, linked to different bank accounts.”

Source: TechinAsia

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