Free shipping has long been a pivotal strategy in the e-commerce landscape, with consumers being the primary beneficiaries. However, this is just the tip of the iceberg. By delving deeper, we uncover how platforms like Shopee, through their extensive investment in free shipping, also impact other stakeholders, including logistics providers, content creators, and livestream hosts.
In the highly competitive world of e-commerce, free shipping has become a decisive factor in attracting and retaining customers. Shopee, a leading e-commerce platform, recognizes this and consistently offers diverse free shipping programs to support both users and sellers. The most recent example is their “0₫ Shipping Fee” campaign.
The success of this initiative was evident as Shopee’s 7.7 super sale concluded, with users saving over 133 billion VND in shipping fees alone. This aligns with Q&Me’s e-commerce survey for the first half of 2024, which revealed that attractive prices, promotions, and free shipping are the primary reasons (76%) why consumers favor and frequently use Shopee. This is followed by factors such as diverse product options (56%) and fast delivery times (52%).
Le Si Dung, a seasoned Shopee seller, shares his insights on the impact of free shipping on consumer behavior.
Shifting our focus to logistics providers, livestream hosts, and content creators, we find that the benefits of free shipping extend even further. GHN, Shopee’s strategic logistics partner, reported a significant increase in the number of delivered orders during the platform’s promotional period, along with a notable rise in the volume of heavy orders in July. This positive development comes after GHN expanded its heavy delivery program in April, making it one of the few logistics companies capable of handling oversized orders of up to 3.2 meters in length and 200 kilograms in weight efficiently.
Free shipping in e-commerce acts as a lever to boost purchasing power, directly impacting the volume of orders handled by logistics providers.
Another group influenced by free shipping, often overlooked, is livestream hosts and content creators. “As a content creator who relies on videos, I need to demonstrate to my viewers how to apply discount and free shipping codes to products. Having more substantial discounts helps convince viewers,” shared a content creator.
Kieu Loan, with nearly four years of experience as a Shopee Live host, emphasizes the critical role of free shipping in the success of livestreams.
“Even with the most eloquent and charming delivery, it’s challenging to keep viewers engaged during a livestream without accompanying offers. The bigger the vouchers and free shipping incentives, the faster the orders roll in,” added Kieu Loan.
Free Shipping Remains Shopee’s Key Strategy for the Year-End Peak Season
August is considered a preparatory month for the e-commerce market, as sellers and logistics providers gear up for the upcoming Mega Year-End Sale. This entails forecasting demand, managing inventory, allocating staff, and optimizing packaging and operations to keep pace with the market’s growth.
Industry analysts predict that discounted prices and free shipping will remain pivotal strategies for e-commerce platforms during this period, with the differentiating factor being the value of these offers.
Shopee intends to extend its “0₫ Shipping Fee” program, offering savings of up to 500,000 VND to meet customers’ diverse needs. This support is especially beneficial for sellers of bulky and heavy items, such as diapers, furniture, and home appliances, which are in high demand ahead of the new year and festive seasons. Shopee is also one of the few e-commerce platforms to provide free express shipping of up to 100,000 VND, catering to inner-city customers who require rapid delivery within a few hours.
To achieve this, Shopee plans to strengthen collaborations with logistics partners to optimize capacity, expand delivery coverage, and enhance delivery services, ultimately elevating the overall shopping experience for customers on their digital platform.
GHN, anticipating a significant surge in order volume during the year-end peak, including heavy items, is leveraging its advantages. These include a dedicated sorting system and warehouses, along with the utilization of postal offices’ networks and the development of a dedicated large-item delivery network to streamline the delivery process from e-commerce platforms and sellers to consumers.
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