The Southeast Asia e-commerce scene is booming and is one of the fastest-growing segments of the region.
Having battled scepticism from low digital trust, income inequality and infrastructure gaps, the digital economy and e-commerce sector in Southeast Asia now enters a new phase, with closer examination of what growth will actually look like in practice.
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From early adoption to a more sober growth phase
Covid-19 and platforms such as GrabFood, Foodpanda, Shopee and Lazada significantly impacted the acceptance of e-commerce. It has now become the norm, with more people open to trying and implementing it into their everyday lives. Even those who were resistant to digital changes were forced to adopt it during the pandemic, reshaping their routines and perspectives. Furthermore, with the increased smartphone usage and technologically advanced interfaces on both devices and websites, online shopping has become an easy and convenient way of making purchases. Over the past 12 years, there has been about a 22% increase in physical goods purchases and around a 12% surge in food delivery.
According to the DBS Nextwave Southeast Asia 2025 report, e-commerce in Southeast Asia has grown exponentially, with projected sales reaching US$410 billion by 2030. This represents a compound annual growth of approximately 14 per cent from 2024’s US$184 billion. However, as we enter 2026, the more pressing concern is not over whether e-commerce will continue to grow, as it most likely will with its current adoption rate, but rather, how that growth will be shaped by consumer behaviour, platform economics and competitive pressures.
Consumers now shop with intent
In the last five years, there has been a steady increase in the adoption of e-commerce. Consumer behaviour post-pandemic is no longer fuelled by boredom, curiosity or compulsion, but instead, by more deliberate and value-conscious decision-making.
Across the region, discretionary spending has softened as inflation and economic uncertainty weigh on household confidence. However, this did not result in a decrease in e-commerce purchases. Instead, consumer behaviour has shifted from impulsive shopping to selective purchases influenced by price consciousness.
Across Southeast Asia, purchasing habits differ by country. In Vietnam, Indonesia and the Philippines, despite being stressed economies, digital wallet adoption and online spending remain high. Much of this spending goes towards unavoidable categories such as groceries and household essentials. To manage the financial strain, they resort to finding alternative means, such as online platforms, where there is a larger and more affordable variety.
Singapore and Malaysia, on the other hand, are strategic comfort countries. Consumer financial stability is supported by carefully controlled discretionary spending. For example, many Singaporeans wait for promotions before making a purchase. Around 58% of Singaporeans use credit cards and digital wallets to maximise their rewards and cashback. Hence, it is not that spending is reduced or limited but rather, optimised for value maximisation.
Money is naturally one of the most important factors in any decision-making process. It is also present in e-commerce and shopping decisions in the form of price sensitivity. Studies suggest that Southeast Asian consumers are around twice as likely as their American counterparts to start saving more after a crisis.
Price transparency reshapes power between buyers and sellers
e-commerce platforms provide consumers with the opportunity and ability to make easy price comparisons. By having multiple sellers and brands conveniently located on platforms, consumers are able to see alternatives with a few clicks and make informed decisions. The desire for variety further intensifies price sensitivity.
Most importantly, e-commerce not only benefits consumers but also retailers by creating a more level playing field. Smaller retailers naturally provide cheaper options, which consumers like and often pick. This allows smaller retailers, who would otherwise struggle to compete with established retail chains, to prosper and even set online retail trends.
As convenience has become habitual, expectations have risen accordingly. Faster delivery times, accurate tracking, responsive customer service and seamless returns are no longer differentiators; they are baseline requirements.
In urban centres such as Jakarta, rapid delivery services provide promises of delivery within 10 to 30 minutes. Promises like these do not just raise expectations; they redefine them. This makes other companies appear to fall short if they are unable to meet the standards set by competitors. Social media and cross-border exposure further accelerate this expectation, as it allows consumers to compare experiences across markets in real time.
The forces shaping Southeast Asia’s e-commerce next phase
Several structural trends are converging to reshape Southeast Asia’s e-commerce as we enter 2026. Social commerce is rapidly becoming mainstream. Livestream shopping, short-form video and in-app purchasing have transformed content platforms into commercial engines, particularly among younger generations. Entertainment and commerce are increasingly inseparable, reinforcing discovery-led purchasing behaviours.
Cross-border fulfilment is also gaining momentum. Improved logistics infrastructure and regional payment connectivity enable merchants to reach customers beyond domestic markets. Cross-border transactions often command higher average order values, offering sellers a path to growth beyond saturated local demand.
At the same time, embedded fintech has become integral to the shopping experience. Digital wallets, buy-now-pay-later (BNPL) services and in-app credit options reduce friction and increase conversion, particularly for price-sensitive consumers. These tools also strengthen platform stickiness, embedding financial services deeply within the broader digital economy in Southeast Asia.
Finally, AI-driven personalisation is reshaping discovery, recommendations and pricing. Platforms increasingly rely on data-driven insights to tailor experiences, optimise inventory and improve retention, shifting competition from scale alone to intelligence and efficiency.
Platforms are becoming infrastructure, not just marketplaces
One of the biggest changes happening in the Southeast Asia ecommerce space is how platforms are evolving. Major players are no longer just places to buy and sell products. Instead, they are building full ecosystems that include payments, logistics, advertising tools and data services.
This shift is driven by growing pressure on platform fees and profit margins. By charging for services such as marketing tools and financial products, platforms are finding new ways to make money while becoming more deeply embedded in how merchants operate. For sellers, being on a major e-commerce platform increasingly means using an entire suite of services, not just listing products and waiting for orders.
The profitability problem platforms can no longer avoid
Even with ongoing expansion, there will be challenges along the way. Discount-led growth is becoming more and more unsustainable as competition intensifies, leading to higher customer acquisition costs. Regulatory scrutiny around data protection payments and taxation is also increasing, particularly for cross-border operations.
However, profitability is still the top priority for any business model. Logistics, returns, promotions and technology upgrades continue to put pressure on profits for both platforms and sellers. As funding becomes harder to secure, especially for early-stage companies, strong cost control and efficient operations will matter more than simply growing sales volume.
What winning in 2026 will actually require
To be successful in 2026, it is essential for companies to understand the balance required of them. Models that integrate social commerce, embedded finance and efficient logistics are most likely to thrive. Conversely, legacy assumptions, such as growth at all costs, reliance on discounts and one-size-fits-all regional strategies, need to be unlearned or they risk falling behind.
Companies must take into account that every interaction matters. During development, the thoughts, feelings and concerns of consumers must be factored in, with greater empathy for user needs. In a maturing market, value creation will define who leads the future of the region’s online retail trends.