The Future of E-commerce in Southeast Asia

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The e-commerce industry has emerged across the world and is expected to grow its market size and is anticipated to achieve 27, 148 billion by 2027, based on the Grand View Research, Inc. From a simple concept of brick-and-mortar retail to an evolving concept of online shopping and moving to multi-channel strategies. Amazon, Alibaba, and eBay are the giant companies that have been known as successful in the e-commerce industry.

As the market is currently adopting the advantage of digitalization, a wide variety of offline and online retail are now moving towards multi-channel strategies and continuing to invent a more convenient platform for customers.

The growth of digital commerce has accelerated and reached $1.09 trillion in 2022. Meanwhile, the e-commerce industry in Southeast Asia has recorded huge growth from 2019 to 2021. Consumers still preferred e-commerce even though the status of the market is heading back to physical retail. It’s said that the size of Southeast Asia’s e-commerce market is expected to reach more than 400 million users by 2025.

According to an interview with the CEO of Lazada– one of the leading online platforms in the markets– stated that there are 160 million active users monthly. Based on their data, Lazada’s six markets which are; Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam had the most purchases for the past 12 months in the categories of fashion, beauty products, and groceries.

Furthermore, Wee Lee Loh stated that e-commerce in SouthEast Asia just started to bloom but expected to grow more likewise with mature markets such as the US and China.

As e-commerce quickly approaches , here are points to consider as e-commerce in Southeast Asia grows.

Brand Affiliate: Tiktok had gained popularity since the pandemic began and was a successful platform for some retailers. Consumers associated with the brand have been so well-liked recently that many products with digital e-commerce have grown in popularity and revenue.

Social Selling: There is no denying that social selling is currently a popular trend. The majority of merchants sell their products on social media, where customers are more likely to be present. This platform will be used by more businesses to advertise their e-commerce goods.

Logistics: As consumers become more demanding, new consumer habits are more likely to emerge. Thus, a more sophisticated delivery procedure or demand will be created. An order often takes a while to arrive, but in the future, the market will develop a smart mechanism for speedier shipping or same-day delivery. Now, orders require time to be delivered.

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