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If Sea's e-commerce business is "asset-light" and they don't own the inventory, how can they have negative gross margin in the e-commerce segment? Does anyone here understands the drivers?

1)Sea paid a lot of money on advertisement.

2)Taiwan is SE's first place to develop its e-commerce. For first 2 years,it is free of commission charge to any seller in platform. 2 Years later the commission fee is 3-7% of the item price with maximum ~$6-$7/per-item to SE.

3)SE subsidized for free shipment in first 2 years and successfully gain more than 10M members in Taiwan,you can imagine how much money SE had paid for the shipping fee. After 2 Years subsidy, buyers have to pay $2-$4/per-shipment.(SE can earn $0.5~$2/per shipment others to delivery company)

SE started their Taiwan E-commerce in 2015 until 2019 SE reported that they has positive gross margin in Taiwan market. Although SE has biggest market share, local companies such as Momo and Pchome try to find their way to compete with SE after subsidy ended.In 2020, SE still occupy the biggest e-commerce market share but the competition remains.
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