While a relatively new phenomenon, the eCommerce sector has witnessed rapid changes that have escalated further due to the global COVID-19 pandemic. The industry has survived a lack of secure payment service providers, differing tax laws across jurisdictions, crippling logistical problems, a lack of profitability, and more. Despite growing pains, the Southeast Asian eCommerce market has a projected revenue of USD 116.5 billion for 2024. 

As the industry evolves, eCommerce trends in Southeast Asia are also changing. Expectations are that the following five eCommerce top trends will shape the industry in the region. 

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The rise of B2B2C 

Larger eCommerce merchants have traditionally struggled to reach consumers outside major population centres. However, reaching them presents a significant growth opportunity for regional merchants. 

Merchants will increasingly rely on a B2B2C model to access these customers by partnering with numerous local merchants who operate in these areas. This model has the potential to help local economies, assist large eCommerce players in expanding their reach, and allow local merchants to participate in the online shopping growth story while also assisting consumers to access a broader range of products at more competitive pricing.  

For example, currently, Chinese eCommerce sellers rely on a B2C model that offers a profitability of 10%. However, partnering with local Vietnamese platforms to handle last-mile deliveries and returns can help unlock average take-home profits of 15%. 

Continuing logistical roadblocks 

Logistics remains one of Southeast Asia’s most challenging aspects in developing eCommerce. Indonesia, for example, is spread over hundreds of islands. Much of the population resides in remote locations spread across vast swaths of land divided by water. The existing infrastructure can pose difficulties in supporting efficient warehousing and deliveries at reasonable pricing.

Local logistics providers have a significant opportunity to become crucial parts of the economy if companies develop an efficient network. 

Social commerce might redefine the space 

eCommerce has a new cousin, social commerce. This method of selling has been gaining in popularity in Southeast Asian countries in recent years. Online shopping platforms leverage their users’ social networks to increase reach while simultaneously creating trust in the products they sell. 

In Vietnam, a social commerce platform has become one of the top five eCommerce players in terms of market share. Fueling this growth further, TikTok has also established its shopping vertical in the country with high aims. 

Merchants feel that social commerce platforms have two key advantages over traditional platforms. First, brands can more effectively market themselves through influencers on such platforms. Additionally, consumers tend to be less price-sensitive when shopping based on social cues.  

These platforms are poised to impact the industry significantly over the next few years. 

Increased reliance on enablers 

It is one thing to create the product; it is quite another to sell it. That’s where a new breed of eCommerce enablers come into the picture. These specialised companies aim to help brands market their products online, create and manage their online stores, provide customer support and resolve issues while providing other allied services. 

These enablers can help to make or break a brand, especially in today’s highly competitive landscape. Brands need to achieve visibility online to gain traction and create demand for their products, which can require highly specialised expertise that these enablers are happy to provide.

Climate influencers, one type of brand enabler, can help point sustainability-conscious consumers towards the right products. Some of the biggest names in this space include aCommerce, Great Deals, Synagie, and SCI eCommerce. 

Raising funds remains critical to unlocking growth

One of the primary factors in the growth of the eCommerce landscape will be the industry’s ability to raise capital. High levels of upfront investment for startups in the sector will help them develop a product-market fit and reach consumers at scale. 

The high potential of the Southeast Asian economy as a whole and the eCommerce market, in particular, are helping companies attract investments from larger domestic corporations and abroad. For example, Sea Ltd. created a massive USD 1 billion fund for regional investments. Companies that successfully attract such investments are more likely to capture market share in this constantly fluctuating online shopping landscape. 

These eCommerce top trends currently indicate promising tailwinds for Southeast Asian online shopping startups. The region remains a promising destination for eTailers due to growing local economies, rising disposable income, and favourable consumption trends. 

As ASEAN develops, expectations are that the market’s overall size will balloon further, creating significant opportunities for entrepreneurs targeting the online retail space. While challenges remain, learnings from other parts of the world can help companies avoid any pitfalls and help them leverage eCommerce trends in Southeast Asia for economic growth.