there are some challenges that Shopee must acknowledge to develop a suitable plan when

marketing and purchasing goods on the social network.

Playing the role of Shopee manager, we find out some detrimental companion with
benefits that this shopping channel has to bear. The marketing of products on social media
will raise the operation cost, which we don’t know exactly how the new buying rate can
cover. The cost for promotion on FB by CPC (Cost per click) is shown in the picture.

In comparison to Shopee’s top category, the Home and living category has the largest
percentage in growth rate and 3rd place in volume. However, it has the CPC cost is $ 2.93,
only after finance and customer services. We can’t determine whether customers will buy
after they click the advertisement or not, which has already cost us a lot.

In the case of TikTok, CPM (cost per mile) is $10, which also includes at least $500 per
campaign, and we can see that the price is not cheap, also. Obviously, if the advertisement
videos don’t appeal in the first 2 seconds, that promotion is a fail, since TikTok only play
video for viewer.

On the other hand, the way that marketing can be applied in social networks seems to have
many risks and issues. If sellers pay Shopee to appear in advertisements, those sop product
might be inequal since the one who already have high purchasing rates won’t need to join in.
The bad products can adverse Shopee fame, as well as negative effects on customers
(especially in the food category). The more serious issue is that the shops themself can
control the comments, like renting people to provide the good ones or delete the bad ones. If
we apply marketing on social channels for Shopee, it is crucial to pay more attention to the
management step, since the selling rate is so important element that can cover the added
operation fee.

From the perspective of buyers, the challenges seem to be quite much, too. People who
use social media majorly for updating information, contacting, and entertainment purposes,
hence advertisement that appears too much can annoy users. The method of buying directly
on social media or livestream can be the solution for this problem but can lead to some other
cases, too. In the 1st stage, Shopee will have to make the buying directly on other websites
becoming more popular with buyers . The most selling item on social channels these days
are clothes, shoes, and perfume, whose major target customers are women. This also
corresponds to the gender demographic in the buyer profile, that women contribute 58%
buying rate in comparing with men buyers, thus resulting in focusing only 1 gender. Also, the
advertisements have to be more attractive with video, music, or product reviewed by KOL or
famous people to attract even the customers who don’t have a demand to go shopping at
the time they come through Shopee advertisement.

With the sellers, they can actually build their own fan page on FB without any helps from
Shopee. The only reason that motivates them to join in Shopee promotion on social media is
the Shopee brand name that has already been famous and familiar with buyers, which can
benefit them, too, as well as the suitable fees that Shopee applies for each user. If the
advertising method is not effective, and the cost goes higher without any proficient revenue
increase, sellers will leave the stage.