Southeast Asia’s e-commerce market is entering a new phase of growth. After years of competing on price, promotions and delivery speed, marketplaces and merchants are increasingly focusing on how consumers discover, evaluate and buy products. AI tools and creator-led content are changing how businesses reach shoppers across the region.

Southeast Asia’s e-commerce gross merchandise value (GMV) is projected to grow 18% year-on-year to US$226 billion in 2026. However, a larger market does not automatically mean easier growth for merchants. As competition intensifies, businesses will need to understand which emerging trends can generate sustainable sales rather than simply attract attention.

We explore how social commerce is pushing Southeast Asia’s e-commerce market towards a two-player race

1. AI-assisted shopping moves towards agent-led purchases

Artificial intelligence is changing online shopping from a process driven primarily by manual searches into one that is increasingly supported by personalised recommendations and automated assistance. Instead of browsing multiple listings, consumers can use AI tools to compare products, summarise reviews, identify suitable options and narrow down their choices based on their preferences.

This behaviour could support the development of agentic commerce, in which AI agents complete purchases on consumers’ behalf. According to Google’s e-Conomy SEA 2026 study, 75% of surveyed consumers using AI in Southeast Asia are comfortable allowing agents to find the best price and make purchases, provided appropriate safeguards are in place. For merchants, this could change how products gain visibility. Accurate, clearly structured product information, including descriptions, prices, availability and reviews, could help AI tools assess and compare listings. Wider adoption will also depend on reliable payment authorisation, privacy protections and clear procedures for correcting mistakes, cancelling orders and obtaining refunds.

2. Content-led commerce becomes a core sales strategy

Livestreams, short-form videos and affiliate marketing are becoming increasingly important parts of the online shopping journey. Rather than relying exclusively on consumers searching for products, brands can generate demand through demonstrations, creator recommendations and entertainment-led content.

Momentum Works projects that content commerce in Southeast Asia will generate US$77.9 billion in GMV in 2026, following US$33.8 billion in the first half of the year. Content commerce accounted for around 37% of regional platform e-commerce GMV in the first half of 2026, up from 20% in 2024. This growth suggests that merchants should integrate content into their sales strategies, coordinating livestreams, short videos, affiliate programmes and marketplace listings. These formats can serve complementary roles: short videos build awareness, livestreams demonstrate products and answer questions, while affiliates introduce products to established audiences.

However, higher engagement does not always translate into additional sales. Momentum Works has highlighted that some livestream purchases may simply shift demand away from other shopping channels. Businesses therefore need to measure incremental revenue, conversion rates and customer acquisition costs rather than relying solely on views or livestream GMV.

3. AI-powered selling makes personalisation more scalable

AI is also changing how merchants create and distribute sales content. Generative AI tools can produce product descriptions, translate listings, create advertisements and tailor messages to different customer groups. Virtual hosts and AI tools for managing livestreams could also reduce the resources needed to maintain regular broadcasts. Some AI-managed livestreams operate at around 20–25% of the cost of human-managed streams while generating roughly 80% of their GMV per hour. Although these results may not apply across all businesses or product categories, they suggest that automation could lower content production costs.

For smaller merchants, automated tools could make it easier to maintain product listings and run campaigns across several marketplaces. Larger retailers can use customer data to tailor recommendations and promotional messages at scale. Nevertheless, automation introduces trust concerns. Poorly generated product images, inaccurate descriptions and artificial endorsements can mislead shoppers. Businesses will need to maintain human oversight, disclose relevant synthetic content and ensure that product claims remain accurate.

4. Localised payments become essential to conversion

Consumers in different countries rely on different combinations of digital wallets, QR payments, bank transfers, cards and cash on delivery. For merchants expanding across borders, offering a familiar payment option can determine whether a customer completes or abandons a purchase. Research involving 6,000 online shoppers across six Southeast Asian markets highlights the consequences of getting this wrong. It found that around 51% of surveyed Indonesian shoppers and 41% of surveyed Filipino shoppers had abandoned an online purchase in the previous three months because their preferred payment method was unavailable. 

On Xendit’s platform, QRIS payment volumes increased by 142% between January 2025 and April 2026, while QR Ph and InstaPay payment volumes in the Philippines increased by 198% over the same period. Although these figures reflect activity on one provider’s platform, they illustrate why merchants need to monitor changing payment habits. In 2027, businesses expanding across Southeast Asia should offer relevant local payment methods, clearly disclose fees and make refunds straightforward. Checkout should be treated as an integral part of the customer experience.

5. Profitable growth takes priority over headline sales

As the market matures, merchants will face greater pressure to demonstrate that their e-commerce operations can generate sustainable returns. High sales volumes may look impressive, but platform commissions, advertising costs, fulfilment expenses, discounts and product returns can significantly reduce margins. Sustainable growth will depend on managing customer acquisition and fulfilment costs alongside sales. Platform GMV reached US$157.6 billion in 2025, growing 22.8% year-on-year, but competition is increasingly centred on how businesses retain customers and manage operating costs.

This makes customer retention particularly important, especially where repeat purchases are common. Businesses that build customer loyalty through reliable delivery, responsive service, relevant recommendations and convenient returns can reduce their dependence on expensive acquisition campaigns. Inventory management and fulfilment efficiency will also become increasingly important as merchants operate across marketplaces, social platforms and their own online stores. For startups, opportunities may emerge in merchant software, inventory synchronisation, customer retention tools and logistics technology that help businesses improve margins without sacrificing the shopping experience.

What businesses should prepare for in 2027

Southeast Asia’s e-commerce trends are developing at different speeds. Localised payments and content-led selling are already established, while wider adoption of autonomous shopping will depend on consumer trust and reliable transaction safeguards.

For businesses preparing for 2027, the priority is to connect these developments to measurable outcomes: easier product discovery, more efficient operations, smoother checkout and stronger customer retention. Technology adoption will be most useful where it improves the shopping experience and supports sustainable margins.