Shopee launches "Consumer Loyalty Program," bringing new benefits to both sellers and users

Author: Tu Ke Chuhai

Image source | pexels

In 2024, the e-commerce competition in Southeast Asia has entered a new stage, with major platforms ramping up their customer retention strategies.

Recently, Shopee officially launched the new Shopee Rewards, a "Consumer Loyalty Program."

For the platform, this is a key step to solidify growth momentum; for sellers and consumers, it is a mutually beneficial opportunity window.

Four Membership Levels Launched

The core of Shopee Rewards is to establish a tiered membership system, categorizing users into four levels: Classic, Silver, Gold, and Platinum. Users start at the Classic level and can upgrade based on their spending amount and order quantity, with a cycle of 6 months. At the end of the cycle, levels will reset, and those who do not meet the standards will be downgraded.

In simple terms, Silver requires at least 10 orders and 500 Malaysian Ringgit in spending; Gold requires 2000 Malaysian Ringgit in spending and a certain order amount; Platinum has a higher threshold, requiring 50 orders and 4000 Malaysian Ringgit in spending. The higher the level, the more benefits enjoyed, such as extra birthday vouchers, shipping discounts, and ShopeeFood offers.

Under this system, Shopee's goal is very clear: to keep users who "spend more and order frequently" on the platform and provide them with a better shopping experience. For ordinary consumers, this tiered growth path will encourage them to continue placing orders to obtain more exclusive benefits, forming a positive consumption cycle.

What New Opportunities Does This Bring for Sellers?

On the surface, Shopee Rewards is a consumer-facing benefit policy, but the real winners behind it are the merchants on the platform.

Firstly, the launch of the loyalty program will directly increase the activity of high-frequency users. Higher-level members mean greater spending power and higher repurchase rates. For sellers, the platform nurturing these quality users translates to a precise potential customer base, allowing merchants to enjoy stable traffic from the platform, higher conversion efficiency, and potentially increased average order value.

Secondly, to promote the operation of the loyalty program, Shopee will inevitably strengthen the planning of exclusive member activities, such as Platinum member events and limited-time discounts for Silver users. Sellers can take the opportunity to participate in these exclusive member activities, leveraging platform exposure to precisely reach high-value users.

Why Is Shopee Focusing on This Now?

From a broader perspective, Shopee's launch of the tiered membership program is not surprising.

As competition in the Southeast Asian market intensifies, the rapid rise of platforms like Temu, Lazada, and TikTok Shop has made traffic competition increasingly fierce. The past strategy of attracting new users through subsidies is waning, and retaining old users and improving repurchase rates have become core issues Therefore, Shopee needs to solidify its foundation for long-term stable growth by retaining core users with strong purchasing power through a loyalty program.

Conclusion

The launch of the loyalty program by Shopee is, on one hand, a long-term strategy to enhance user stickiness, and on the other hand, a signal of new growth opportunities for sellers.

From more stable traffic supply to precise conversion of high-spending users, and to diverse membership marketing strategies, this "membership competition" has already begun.

For cross-border sellers, this is an opportune time to adjust their pace and upgrade their strategies, planning for popular products and activities around Shopee Rewards in advance, as there may be more opportunities to gain an advantage in the Southeast Asian market by 2025.