Press Release

Shopee to End Cross-Border Operations in Colombia and Chile Amid Strategic Focus Shift

• ByStartupStory     |    November 4, 2025

Shopee to End Cross-Border Operations in Colombia and Chile Amid Strategic Focus Shift

Southeast Asian e-commerce giant Shopee, operated by Singapore-based Sea Ltd, has announced it will cease its cross-border operations in Colombia and Chile, part of a broader realignment to focus on core and profitable markets amid global economic uncertainties. The move marks a further retrenchment in Latin America, where Shopee had expanded aggressively in recent years but has faced intense competition and operational challenges.

Shopee entered the Latin American market in Brazil in 2019 and later expanded to Mexico, Chile, and Colombia. While Brazil remains Shopee’s dominant Latin American market, accounting for around 20% of its gross merchandise value (GMV), the company has adopted an asset-light model for Mexico and tested cross-border operations in Chile and Colombia.

The decision to exit Colombia and Chile’s cross-border models follows Shopee’s earlier exit from Argentina and local operations shutdowns in Mexico. This was communicated to employees as part of a wider corporate strategy to optimize resource allocation and focus on markets with the highest growth and profitability potential. Shopee will significantly reduce its regional workforce in these countries, impacting dozens of staff.

Chris Feng, Shopee’s CEO, cited “heightened macro uncertainty” as a key reason for the retreat, emphasizing a renewed focus on Southeast Asia and Brazil, where Shopee enjoys market dominance. The company confirmed its continued dedication to Southeast Asia, where it retains a strong presence.

The pullback highlights the difficulties faced by international e-commerce platforms in breaking entrenched local competitors in Latin America’s diverse markets. Mercado Libre dominates the region, supported by deep logistics infrastructure and understanding of local consumer preferences.

Despite challenges, Shopee reports solid growth in its remaining core markets, leveraging mobile-friendly platforms, integrated payment solutions, and influencer marketing. The retracting strategy aims to preserve investor confidence while positioning Shopee for sustainable, profitable growth.

In summary, Shopee’s decision to wind down cross-border operations in Colombia and Chile reflects its strategic prioritization of core markets amid global headwinds. This sharply focused approach underscores the complex realities of scaling e-commerce in varied regional landscapes, even for established platforms.

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