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Technology

Is using Shopee’s collection point really worth it?

Here’s what Shopee’s collection point hosts really experience

Shopee’s local collection network has been part of Singapore’s everyday life since 2023.

The e-commerce firm has set up more than 2,800 collection points across Singapore as of today, including residential addresses, convenience stores, and lockers—putting most households within 250m of the nearest pick-up option.

This kills two birds with one stone.

For customers, it offers an affordable and convenient delivery option, with savings of up to S$1.99 on delivery charges per item. For ordinary Singaporeans, it creates an opportunity to earn income by turning their homes or businesses into small property spaces.

But what does using Shopee’s collection point actually look like behind the scenes?

Simple income?

Shopee collection point parcel for the store
Photo Credit: Andrew Koay

Shopee’s logistics arm, SPX Express, delivers bulk packages to registered collection points. At the lockers, customers can collect their orders independently.

At pickup locations—usually neighborhood stores or residential addresses—the host stores packages, verifies customers’ identities using the Shopee app upon arrival, and delivers items.

In return, hosts get paid for each package distributed. The role requires seemingly little: adequate storage space, a device connected to the Internet, and a commitment to working hours for the collection point.

Hosts usually earn between S$0.20 and S$0.30 per package. Channel News Asia and it was previously reported in 2024 that hosts earn at least S$90 per month.

Finally, promotional information on the Shopee app states that collection points that distribute up to 900 parcels per day can earn up to S$5,400 monthly, while 60 parcels per day can bring in S$360 monthly.

Sounds like easy income, right? It’s wrong.

Fine print

Committing to turning your house into a Shopee collection point is still a long way off.

Hosts must be open at least six days a week, for at least 36 hours. In addition, they must be present during working hours to receive and deliver parcels, effectively contributing to the person being at home consistently.

Shopee collection point parcel for the storeShopee collection point parcel for the store
Photo Credit: Andrew Koay

At first glance, the economics may look attractive. But at S$0.30 per parcel, the numbers start to feel on the scale.

For example, handling 30 parcels per day translates to only S$9 in daily earnings. That’s already 30 different customer offers—yet it’s still a decent payoff for the time and space involved. Scaling up is where the workload grows the most, with hundreds of daily parcels needed to generate revenue.

Space is another major obstacle. Many HDB flats have limited storage capacity, which can quickly bottleneck during peak delivery periods.

There is also little flexibility in planning. If hosts miss their working hours, Shopee can impose penalties for non-compliance. At S$0.30 per parcel, even a fine of S$50 effectively clears more than 160 parcels.

Workload, risk and disruption

shopee collection point home hdb parcelshopee collection point home hdb parcel
Photo Credit: sahmjann via TikTok

Running a Shopee collection point means meeting the expectations of many parties: Shopee, customers, and even neighbors.

Complaints from hosts go beyond financial concerns.

Packages arrive daily and are often left at the door, making it the homeowner’s responsibility to keep them safe. Despite the stated weight limit of 6kg, some hosts have found larger items such as dumbbells, which add to storage and handling.

Some customers also come outside of working hours—sometimes after 10PM—waiting to be collected regardless of the time specified. Others treat the collection site as an extension of Shopee’s customer service, seeking help with orders, returns, and complaints that have nothing to do with the host.

“Operating a collection point is hard work and not as much of a living as many people think,” wrote the child of elderly parents who ran a Shopee collection point in their home in a Reddit post.

Besides the workload, some neighbors of the housing estates also expressed concern about the increase in pedestrian traffic outside their homes, citing potential safety risks and loss of privacy. So the host not only manages his home space, but also the flow of people in the corridors of the shared living space.

“My post is just to let people know the facts of using a thrift store and not to trust the pretty picture painted by Shopee,” added the same Reddit user.

It makes sense who and why Shopee wins either way

Shopee collection point parcel for the storeShopee collection point parcel for the store
Photo Credit: Andrew Koay

It is important to note, however, that not everyone has the same bad experience.

In general, using Shopee’s collection point can make more sense for store owners. Two store owners whose stores became Shopee collection points in 2023 reported more customers than ever before.

At one store, many parcel collectors are becoming regulars, while another is attracting new customers beyond its regular base. Since hours and foot traffic are already there, parcels become a free channel for customer acquisition of their products in addition to the revenue of each parcel.

For homeowners and retirees who stay at home all day, income increases, especially if the volume is high and your neighborhood is a good fit.

But for someone who already works or has young children at home, going in can be more than a quick return.

From Shopee’s point of view, the company wins either way: collection points are an effective planning solution.

A company can expand its last-mile network without building warehouses or hiring delivery workers as hosts capture those costs over time and space, so they get less money per package.

For customers, collection points offer free shipping at no minimum cost, and the convenience of a nearby pickup location—often just a short drive away.

While the model works for both Shopee and its customers, the question remains whether it works well for those who turn their homes or stores into collection points.

  • Read other articles we’ve written about Singapore businesses here.

Featured Image Credit: Shopee/ Andrew Koay



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