Shopee Singapore Site Adjusts Local Fulfillment Stocking Time

In order to improve the buyer's shopping experience, encourage sellers to perform better and remain competitive in the market, Shopee Singapore site will adjust the stocking time (DTS) of spot goods for local fulfillment sellers from July 10, 2024, and pre-sale goods will not be affected.

Adjustment of local fulfillment stocking time

Orders paid before 2:00 pm: DTS = 1 day, that is, orders confirmed before 2 pm will be shipped within 1 working day and must be shipped on the same day or the next shipping working day.

Orders paid after 2:00 pm: DTS = 2 days, that is, orders confirmed after 2 pm will be shipped within 2 working days and must be shipped on the same day or within the next two shipping working days.

In addition, it should be noted that:

Shipping time is based on local time.

If the order is placed on a non-working day (such as Sundays and public holidays), DTS will only consider the shipping working day.

For preferred sellers and mall sellers, the shipping working day includes Saturday; for non-preferred and mall sellers, the shipping working day does not include Saturday.

For sellers who use third-party logistics transportation services, there are some pros and cons to the adjustment of the localized fulfillment stocking time of Shopee Singapore site.

The positive impact of the adjustment of Shopee Singapore site on cross-border e-commerce

Improve logistics efficiency

By shortening the stocking time, the Shopee Singapore site will be able to process orders faster and improve logistics efficiency. This will reduce customer waiting time, and for sellers, this will help improve customer satisfaction and loyalty.

Enhance seller competitiveness

The shortening of stocking time will encourage sellers to process orders faster and improve transaction performance. Fast local delivery is one of the important factors to attract consumers. By shortening the stocking time, sellers can better meet consumer needs and improve market competitiveness.

Challenges in cross-border e-commerce logistics

For cross-border e-commerce, it is necessary to adapt to the new stocking time requirements and may need to optimize its logistics processes to ensure that shipments are completed within the specified time. In order to adapt to the new stocking time requirements, sellers may need to strengthen cooperation with third-party logistics service providers and optimize logistics processes. This will help improve logistics efficiency and may prompt both parties to establish a closer cooperative relationship.

Challenges brought by Shopee Singapore site adjustment to multinational e-commerce

Increased logistics pressure

The shortened lead time will bring greater pressure to logistics. Sellers need to complete the processing and delivery of orders in a shorter time, which will require third-party logistics service providers to have higher efficiency and service quality.

Stricter inventory management

In order to adapt to the new lead time requirements, sellers need to manage inventory more strictly. If the inventory is insufficient or poorly managed, it may cause the order to be unable to be shipped on time, thus affecting customer satisfaction and store ratings.

Logistics cost

In order to meet the new lead time requirements, sellers may need to increase inventory, optimize logistics processes, etc., which will increase operating costs. At the same time, if third-party logistics service providers increase service prices, it will further increase the operating costs of sellers.

Risk management

Shorter lead time may increase the risk of logistics delays, especially during peak periods or when encountering unforeseen logistics problems.

How to solve this problem through Chinese fulfillment service providers?

Strengthen cooperation with Chinese fulfillment service providers

Multinational e-commerce can strengthen cooperation with Chinese fulfillment service providers to ensure that goods can be delivered from China to Singapore quickly and accurately.

Centralized transportation

Using consolidated transportation, i.e. combining multiple small shipments into one large shipment, can reduce transportation costs and improve efficiency. This ensures that products arrive in bulk and are ready for quick shipment, thus offsetting the longer lead time.

Optimize inventory management

Multinational e-commerce companies can ensure that they have enough inventory in Singapore to meet the new lead time requirements by optimizing inventory management.

Improve the level of logistics informatization

Multinational e-commerce companies can strengthen logistics informatization and improve the automation level of order processing, inventory management and logistics distribution to cope with the new lead time requirements.

Utilize overseas warehouses

Chinese logistics service providers often provide overseas warehousing solutions. By storing inventory closer to the target market, sellers can: reduce shipping time, reduce shipping costs and improve customer satisfaction.

Adopt a hybrid fulfillment model

Sellers can use a combination of local and cross-border fulfillment strategies: store popular products in Shopee's local distribution center, and use a hybrid model of Chinese logistics providers for delivery for products that are slower or larger in size.

Utilize value-added services

Many Chinese logistics providers offer additional services such as customized packaging and labeling, quality control inspections, return processing, etc. These services help improve the overall customer experience and streamline operations.

Longer lead times can be particularly detrimental for products with high demand or shorter shelf lives. Conversely, for products with stable demand and longer shelf lives, the impact may be smaller. The ability of third-party logistics providers, such as Chinadivision, to adapt to changes in lead times is critical. Flexible and responsive logistics partners can mitigate many of the negative impacts by adjusting their operations accordingly.