A REPORT ON ANALYSING

SHOPEE SYSTEMS AND PROCESSES

SUPPORTING THEIR ONLINE SELLING AND SERVICE ACTIVITIES

Prepared by
GROUP 7
Vũ Ngô Bảo Châu - 20070904
Mai Xuân Đạt - 20070917
Trần Thảo Chi - 21070065

Hanoi, 05.2022
PURPOSE Vietnam's e-commerce industry value is expected to reach 39 bil. US dollars by 2025, placing second only
to Indonesia as one of the fastest-growing internet economies in the Southeast Asian region. In Vietnam, the current

OF THE digital population and expanding internet penetration create favourable circumstances for the growth of e-com-
merce firms. As a result, the country's e-commerce proportion of total retail sales has been rapidly expanding, and

RESEARCH
online channels have eclipsed modern retail channels in terms of growth within the FMCG sector.
International e-marketplaces like Singapore's Shopee and Alibaba-owned Lazada presently dominate the
Vietnamese e-commerce business. Meanwhile, there has been a surge in the number of newly registered Vietnam-
ese e-commerce sites, particularly e-marketplaces. In recent years, the local brand Thegioididong has grown as one
of the most prominent e-commerce sites, specialising in household devices and IT gadgets. Overall, the e-com-
merce sector's business-to-consumer (B2C) income has increased from less than 1 bil. US dollars in 2012 to about
12 bil. US dollars in 2020.
Shopee online has become increasingly popular among consumers for purchasing purposes as compared to
brick-and-mortar retail due to the benefits and enjoyment that come with it. However, Shopee is facing intense com-
petitive challenges with other competitors in Vietnam. In addition, it is also difficult for Shopee to compete with
major leaders of online shopping portals although this platform offers the same function and usage as its contender.
Thus, it is important to analyse the information systems and business processes of Shopee to understand
what makes them choose the online shopping platform. From the academic perspective, there have been intensive
studies on online shopping attitudes and behaviour in recent years. However, the past researchers have not fully
updated & examined the changes & evolution of online shopping ever since as well as the pandemic impacts on
customers’ shopping habits & behaviours.
This research aims to explore business information systems and processes supporting Shopee's online
selling and service activities. From articles and research, we have pointed out 9 elements in the business system
including Key Partners, Key Activities, Key Resources, Value Goals, Customer Relationships, Channels, Customer
Segments, Cost Structure, and Revenue Stream. In addition, we have described the company's functional areas, as
well as drawn diagrams for core business processes representing cross-functional processes; to explain the function-
al areas related to online sales and service activities.
Since then, the study gives solutions and recommendations to suggest e-commerce sites in their business
processes and helps them upgrade information systems on the online shopping platform.

Keywords: E-commerce, Shopee, business model, information systems, business processes, sales, and services.

01
 2.1. Introduction:

OVERVIEW
2.1.1. History & development
Shopee Pte. Ltd. (Shopee) is a Singaporean multinational technology company & eCommerce site founded by
Forrester Li. Headquartered under Sea Ltd., Shopee was first launched in Singapore in 2015, and later expanded its reach

OF THE abroad.
As of 2021, it is widely considered as the largest eCommerce platform in Southeast Asia with 343 mil. monthly

SELECTED
visitors2, and the company also serves consumers and sellers throughout several countries across the Americas and
Europe who wish to purchase and sell their goods online.
In 2015, Shopee was launched in 7 markets across the region: Singapore, Indonesia, Malaysia, Thailand,

COMPANY Taiwan, Vietnam, and the Philippines as a social-first, mobile-centric marketplace where users can explore, shop, and
sell. In Oct 2019, Shopee made its first move outside its original region - Asia by opening the eighth market in Brazil.
The asset-light platform, which includes logistical and payment assistance, claims to make online shopping
simple and secure for both merchants and customers. To compete with other e-commerce websites in the region, such as
Lazada and AliExpress, the app-based platform created a website. Shopee distinguishes itself by providing online shop-
ping security with its escrow service dubbed "Shopee Guarantee", which withholds payment from merchants until
purchasers get their items. Sellers are charged a commission fee and transaction fee for every sale they make on the
platform. Shopee sells a range of ancillary and complimentary services. The company offers to take care of the fulfill-
ment process for sellers and provides its digital wallet as a payment option.
Shopee eCommerce platform is tailored for the region, providing customers with an easy, secure, and fast online
shopping experience through strong payment and logistical support.
2.1.2. Shopee in Vietnam
In Vietnam, Shopee was officially launched on 08.08.2016.
According to YouGov BrandIndex 2020 Buzz Rankings3, Shopee ranked 2nd after Samsung in Vietnam as a
customer positively responded brand, while Tiki and Lazada ranked 4th and 9th respectively.
Shopee also ranked first in monthly web visits according to the Map of eCommerce in Vietnam4 by iPrice in the final
quarter of 2021 with traffic of nearly 89 mil. web views.
There are many services provided by Shopee such as logistics and customer support (automatic chatbots),
secure payment methods (and even its e-wallet - ShopeePay), and shopping and chatting with sellers. This online shop-
ping platform also enables online consumers to shop anytime and anywhere with a wide variety of mall sellers and
trusted marketplace sellers (ShopeeMall) who offer the best deals and vast savings.
However, Shopee has encountered difficulties in competing with Lazada from all aspects in terms of monthly
visit rate or the type of business model used to achieve operational excellence5 . In addition, according to the Shopee
Complaints Board6 , this online platform also must deal with common problems such as refund problems, product
defects, and poor customer service (ComplaintsBoard.com, 2021).
2
Shopee Analytics (2022)
3
YouGov BrandIndex 2020 Buzz Rankings - YouGov Vietnam (2020)
4
The Map of E-commerce in Vietnam - iPrice Insights (2021) 02
5
Insights: The Shopee Business Model & Revenue Model - Ben Lim via Nexea (2017)
6
Shopee Complaints Board (2021)
 OVERVIEW
OF THE
SELECTED
COMPANY

2.2. Shopee Business Model Canvas & brief explanation in detail:

2.2.1. Key Partners
The key partners of Shopee are both buyers and sellers. Retailers are also supporters and collaborators of the
service. However, there are other partners such as suppliers, agencies, and logistics partners. Together with the sellers, all
of these people are increasing the value of Shopee. In addition, they also attract new customers to the service.
2.2.2. Key Activities
Sell goods
Supply chain management
Logistics
Support Shopee’s ecosystem by acquiring other companies
Website and app upgrades, including development, design, and optimization
2.2.3. Key Resources
As an online marketplace platform, Shopee must have an important portion of its resources offline. These are
order processing centers or warehouses. Furthermore, Shopee has created automated supply chains to make shipping
easier by teaming up with local delivery firms such as NinjaVan in South East Asia or Delhivery in India.
03 01
 Another key Shopee resource is its software engineers, who develop the infrastructure for the online platform.

OVERVIEW
Some notable highlights of the Shopee platform include:
Built for Mobile - Shopee’s user interface is built for mobile, making users’ mobile shopping experience fast and
highly intuitive.

OF THE Shopee Live Chat - Users can engage in real-time conversations through Shopee's built-in instant messaging
capabilities.

SELECTED
Shopee Guarantee - Users can shop worry free with Shopee Guarantee that protects users by holding payment
until orders are received.
Integrated Logistics System - Shopee works with leading logistics companies to have an integrated in-app logis-

COMPANY tics system. Users can easily select their preferred logistics provider after making their orders.
Free for all to use with no hidden costs.
Available for download for free on the App Store and Google Play.
2.2.4. Value Propositions
Shopee's value proposition mainly consists of convenience; competitive pricing; multichannel platform and
prompt delivery. Shopee is well-known as a platform that provides customers with free delivery service & user-friendly
application & website.
2.2.5. Customer Relationships
Shopee makes their service convenient and easy to use. It allows customers to leave feedback and rate products
so the sellers can meet their demands. There are also campaigns with idols, KOLs or vouchers & sales collaborating with
other corps to satisfy a wide range of customers’ taste.
2.2.6. Channels
Amazon's largest distribution channel is the website, the second is mobile applications (Shopee, ShopeeFood,
ShopeePay). There are also affiliates like the Shopee Affiliates Program.
2.2.7. Customer Segments
Shopee's largest distribution channel is the website, the second is mobile applications (Shopee, ShopeeFood,
ShopeePay). There are also affiliates like the Shopee Affiliates Program.
2.2.8. Cost Structure
Shopee's largest distribution channel is the website, the second is mobile applications (Shopee, ShopeeFood,
ShopeePay). There are also affiliates like the Shopee Affiliates Program.
2.2.9. Revenue Streams
Transaction fees
Marketplace commissions
Advertising clicks
Fulfilment services
Payment processing fees
Restaurant commissions
04
3.1. The company’s function areas
The main functional areas in Shopee are Human Resources, Production, and Administration, Finance, Market-
ing.
3.1.1. Human Resources FUNCTIONAL
AREAS
The Human Resources Department plays an essential role at Shopee. They are responsible for the human
resource needs for all departments and support all administrative and legal procedures to operate the business. Since the
human factor is at the heart of Shopee's development, these departments are constantly improving and enhancing their
support capabilities to bring Shopee to the next level.
3.1.2. Production
The Application Operations Department plays a central role as a bridge between programmers, sales and
INVOLVES IN
creative designers at Shopee. They are responsible for executing the strategy and mapping out the roadmap to achieve
the business goals. This department supports every other department at Shopee including Payments, Supply Chain, ONLINE SELLING
/SERVICES
Marketing, Listings, User Acquisition, Search and Recommendations, Fraud Handling, and more.
3.1.3. Administration
They help the Business Development team follow up with contracts, campaign promotion, etc. Moreover, work
closely with departments such as Finance, Legal, Promotion, SOS team, etc. to ensure smooth workflow.
3.1.4. Finance ACTIVITIES
Analysing financial status by collecting, monitoring, and studying data, proposed action plans, financial infor-
mation to produce forecasts of business;
Establishing and enforcing financial and accounting policies and procedures;
Monitoring day to day finance operations, and company’s financial accounting, monitoring, and reporting
systems;
Coordinating and working with other departments to resolve relevant issues and ensure smooth day-to-day
operations;
Building financial models which support business operation;
Ensuring compliance with accounting policies and regulatory requirements, also avoid conflict with the whole
Organisation’s strategy;
Contributing to team effort by accomplishing related results as needed.
3.1.5. Marketing
*Product – Product strategy of Shopee
Shopee is an e-commerce platform, so their main product is to provide a service where buyers and sellers can
easily find each other to make purchase and sale transactions.
In particular, Shopee's way of attracting customers and Shopee's marketing strategy is to focus on developing
country-specific applications. This is considered part of the 'localization strategy for each market' that the e-commerce
platform shopee is implementing. Along with that, Shopee's marketing strategy always captures the globalisation
platform by developing and optimising websites in many different languages. Design user-friendly website interface,
based on the usage habits of customers. From there, help customers have the best experience.
05
 Shopee's target customers are those who focus on personal care activities. For example: fashion, cosmetics...
*Price – Shopee's pricing strategy
Price competition is also a marketing strategy of shopee with high efficiency. The Shopee team understands that,
with the rise of the e-commerce platform as diverse as it is today; In parallel with providing a smart platform, easy to use FUNCTIONAL
AREAS
and suitable for customers' habits, a competitive price strategy is always extremely necessary.
Besides, by stimulating business owners with forms of building preferential prices when shop owners register
to become shopee members, Shopee's marketing strategy also regularly supports maximum shipping fees, freeship
codes...
*Place – Shopee's distribution channel
Shopee's marketing strategy thrives through versatile online distribution channels. Shopee has continuously
INVOLVES IN
updated and released applications specifically for smartphones and tablets. Furthermore, there is a website that runs on a
computer browser. All of shopee's commerce channels bring many benefits and very good experiences for customers
ONLINE SELLING
/SERVICES
and product suppliers. Help them access purchases, register sales anytime, anywhere.
*Promotion – shopee's promotion strategy
If Shopee's marketing strategy has achieved such great success today, Promotion cannot be ignored. The Shopee
system builds communication on the largest and most popular platforms in Vietnam, strongly hitting Facebook,
Youtube, Google... Especially appearing continuously on public transport, on TV, advertising... ACTIVITIES
Moreover, the form of affiliate marketing (Affiliate Marketing) is also promoted by shopee to increase the
number of large customers for the company. With this form, not only can marketing partners earn more commissions
from successfully referring customers to buy products; but also help shopee to save maximum marketing costs.
In addition, Shopee's marketing strategy is present in all aspects of important holidays and year-ends. Every-
thing is planned to be deployed regularly and regularly to help increase the number of customers, build an effective
crowd shopping effect.
INFORMATION
4.1. Introduction to Shopee system
4.1.1. Model type service providers on the website:
- Order online and delivered to the place;

SYSTEMS - Voucher discount

E-commerce trading floor (e-commerce) shopee.vn by Shopee Pte. Ltd. ("company", operations and operates

BEING USED TO
by "shopee"). Members on the floor are traders, organisations and individuals with legal commercial activities recog-
nized by Shopee and are allowed to use services provided by e-commerce trading floors and related parties. This princi-
ple applies to registered members to use, creating an introduction and / or sales of products, providing services or promo-

SUPPORT tions to be carried out on e-commerce trading floor Shopee.vn. Traders, organisations and individuals participating in
transactions at E-commerce trading floor Shopee freedom agreement on the basis of respecting the legitimate rights and
interests of the parties participating in buying and selling products, services and are not left with law provisions. Products
ONLINE SELLING and services participating in transactions on E-commerce trading floor Shopee must fully meet the provisions of relevant
laws, not in cases where business prohibitions and advertisements are prohibited according to law provisions. Activities

/SERVICES
of buying and selling goods through the E-commerce trading floor of Shopee must be implemented publicly and trans-
parently, ensuring consumer rights. All contents in this Regulation must comply with the current legal system of
Vietnam. Members when participating in the E-commerce trading floor, Shopee must explore their own liability for
ACTIVITIES current laws of Vietnam and commit to comply with the contents in the Regulation of E-commerce trading platform.
4.1.2. Regulations
Seller: traders, organisations and individuals who need to use Shopee services include: creating a peptic, posting
product/ service introduction, and or promotion of products/ services.
Buyers: traders, organisations and individuals who need to understand information about products / services
sold on Shopee. The buyer is required to register an account to participate in the trading transaction.
Members: including sellers and buyers
Members participating in transactions on shopee trading floors are traders, organisations and individuals who
need to buy and sell products and services on the website.
- Members registered to initially declare relevant personal information, officially recognized by E-commerce
E-commerce Trade Floor Management Board and allowed to use the service of E-commerce trading floors.
- When registering is a member of Shopee, members understand that
Members can create their personal account to use.
Members can buy products and services in accordance with prices and standards in accordance with what is
announced on the floor.
Voucher: Vouchers have 01 form of release: Voucher with code.
The vouchers that members received can only be used at the transactions identified by Shopee.
 4.2. Analyse the requirements of Shopee system: The process of goods and services traded sold in Shopee
4.2.1. The process for buyers
When there is a need to buy goods on Shopee, buyers need to take the following steps:
INFORMATION Login Shopee accounts;
Search, refer to product, service, promotion and sellers that buyers are interested in.

SYSTEMS
Refer to the price information and support policies of the seller, the service that the buyer is in need of buying
(can refer to the same items of other sellers on the Shopee website to make a decision to buy products products and
services);
BEING USED TO Based on the reference information from the seller of products, buyers' buyers can contact the booth over the
contact information on the booth to ask for more product, service or contact information to see and buy products and

SUPPORT
services;
Buyers make decisions to order online by clicking "Order";
The buyer selects how to trade though according to the policy of each booth;

ONLINE SELLING The buyer's order will be transferred to the seller. Depending on the agreement between buyers and sellers that
Shopee can support the process of transporting goods and payments or two parties to translate themselves;

/SERVICES
Buyers receive products and services;
Buyers inquiries, seller complaints (if any) via shopee's support switchboard.
4.2.2. The processes for sellers

ACTIVITIES Subscribe to Shopee accounts;

Shopee confirms and activates accounts;
After logging in, the seller posted the sales information:
+ Prepare news articles in letters and images;
+ Posted newsletts must be divided into 02 parts of product information and product images
+ Letters with limited 3,000 characters for product descriptions, do not have regulations on text format due to
shopee will automatically adjust fonts for homogeneity.
+ Images with images are formatted in jpg, BMP, or PNG images. The maximum number of photos for 01
posting time is 09 photos.
Bringing content on E-commerce trading floor shopee;
Shopee censor of the seller's product and service information when putting on e-commerce trading floor shopee.
4.2.3. Shipping forwarding policy
After receiving orders from buyers, Shopee will transfer the order information to the seller and confirm the
transaction form.
If the buyer orders "Payment via credit card", the seller will arrange the freight to the address where the buyer
has registered without using the shipping service supported by Shopee. If the two parties agree to use Shopee's transpor-
tation service, Shopee will appoint shipping units to sellers and transport that product to the buyer's registration address.
Delivery time is started from the orders to be delivered by the seller to a successful shipping unit until the first
contact shipping unit with the buyer for delivery.
Specific delivery time depends on geographic distance between buyers and sellers.
 CONCLUSION &
RECOMMENDATION
5.1. Conclusion
Despite the barriers to sales in the early formation of Shopee, the Shopee really responded so well
to perform a variety of promos to raise the community's desire to shop on their sites. So if you see the success
achieved by Shopee we can conclude that the e-commerce brought about by the internet rocket company
with subsidiaries that Shopee is in demand by consumers. The increase in sales due to the availability of
diverse needs of the electronics and other necessities into the segment sales of the company, does not require
a complicated process in making payments.
In conclusion, Shopee Pte. Ltd. is one of the companies which are experts in E-commerce. The
Shopee Pte. Ltd. has a good online payment system, online purchase system and customer relationship
management. The system is giving more confidence to the customer to get done payment and purchase in
fast and also save time and save money. The Shopee Pte. Ltd. should provide good advertising for the prod-
ucts by social media so everyone knows the product is available in Shopee Pte. Ltd..
E-commerce companies are facing a variety of problems in the marketplace. Even though there are
many e-commerce companies that generate higher sales and revenue, it does not mean that all e-commerce
companies are consistently making profit. It is because there are different kinds of expenses that are required
in order to compete with others such as expenses on sales and marketing. The willingness of an e-commerce
company to solve the problems effectively is very important in order to reduce the risk and step towards the
road of success. Shopee is one of the e-commerce companies that are trying their best to solve the problems
effectively with different types of solutions. Therefore, the success of Shopee’s online retail business proves
that e-commerce and online shopping has a future in the market as it is readily accepted by local shoppers.
Shopee has impacted the Internet business environment. E-Commerce sites provide cheaper prices
compared to if they are going to shop at smaller online shopping websites and traditional shopping malls.
Guarantees that what they are getting are premium quality merchandise that is worth their money and time.
 5.2. Recommendations
5.2.1. Sales and marketing
A side effect of having enormous data is knowing which segment of the consumer base will

CONCLUSION &
respond to which marketing strategies. Shopee should not go with a one-size fits all, “shotgun” advertising
approach but customise their ads to have the maximum effect.
For example, instead of bombarding customers with ads for tight, trendy, lady-jeans, they can mix

RECOMMENDATION things up, showing their male clothing to male consumers, and the women’s clothing to the ladies. (7 Power-
ful Strategies to Improve Your ECommerce Site, 2021)
Moreover, compared to Lazada, Google Ads with Shopee is a benefit for Shopee merchants that
Shopee sellers lust over. It is one of the most effective methods for boosting sales. Furthermore, it is the
biggest difference in the marketing strategy of Lazada and Shopee. Shopee vendors can use it to market
products to customers who are most likely to buy them. As a result, the store’s visibility among potential
buyers will improve. It allows vendors to put their goods in front of the appropriate people at the right
moment. Therefore, Shopee can improve on those mentioned things to improve their customers and brand
awareness.
Even during the pandemic, Shopee kept its consumers entertained - another difference in marketing
strategy of Shopee and Lazada. They collaborated with celebrities, singers, KOLs, and dancers to create
material that buyers enjoyed and valued. As a result, they are skilled at influencing customer purchasing
decisions by exceeding expectations. Therefore, Shopee could introduce the same feature to compete with
its biggest competitors - Lazada. (Compare marketing strategy of Shopee and Lazada 2021, 2021)
5.2.2. Finance and accounting
In terms of payment, Shopee outperforms Lazada by reducing the time it takes for merchants to get
payment by 2-3 days. Shopee, on the other hand, costs $0.20 for each withdrawal. In order to improve the
business like this, Shopee should improve on this point.
On either platform, there are a plethora of payment methods on Shopee. Lazada, on the other hand,
falls short when it comes to collecting payments via over-the-counter bank deposits, coins, remittance
centres, and payment centres. (Compare marketing strategy of Shopee and Lazada 2021, 2021)
5.2.3. Site navigation
If users can find what they want in the shortest time possible, they are more likely to buy something.
They are also more likely to return to your site when they want something else. Put yourself in your custom-
er’s shoes; identify an item and try to find it without previous knowledge of your site. Ask your friends and
family to do the same. Any improvement to Shopee’s site navigation will have a dramatic effect on the user
experience and your business objectives. In this regard, Shopee should take into consideration the Usability
Hub to test the navigation flow and improve the site. (How To Improve Your eCommerce Website in 16
Easy Steps (Updated for 2021), 2021)
In terms of site speed, Amazon has calculated that if their site took only a second longer to load, they
would lose $1.6 billion in sales revenue every year. Recent research indicates that 40% of users will abandon
a website if it takes longer than 3 seconds to load. The online consumer, with more choice than ever before,
is fickle and impatient. If Shopee keeps them waiting for even a second, they may leave the site without
purchasing. So Shopee should make sure that their site is fast.
Vũ Ngô Bảo Châu Mai Xuân Đạt Trần Thảo Chi
20070904 20070917 21070065
BDA2020A MIS2020 BDA2021A