What ecommerce platforms are popular in South East Asia?

South East Asian Ecommerce Market

Southeast Asia has a thriving ecommerce market with one of the world’s fastest growth rates. The region has a population of over 640 million people, is digitalizing, and has a rapidly growing middle class; making the region an appealing market for ecommerce businesses. Within digitalization, the rise of internet and mobile penetration, as well as increased use of digital payments and logistics infrastructure in the region, have all contributed to the growth of ecommerce in Southeast Asia.

According to a report published by Google, Temasek, and Bain & Company, the Southeast Asian e-commerce market is expected to reach $150 billion by 2025. The majority of ecommerce transactions in Southeast Asia are driven by marketplaces, which account for around 80% of the ecommerce market. These marketplaces often offer a wide variety of products and services and rely on third-party sellers to fill their inventory.

The Market is Large yet Highly Competitive

However, the Southeast Asian ecommerce market is highly fragmented, with different countries and even different regions within a country having distinct ecommerce landscapes. For example, Indonesia, with its large population and rapidly growing internet penetration, is a key market for Southeast Asia ecommerce and has multiple industry players. Whereas other countries, such as Laos, still have less mature ecommerce market and only one player or a few small players.

Especially in the more mature markets, the Southeast Asian ecommerce market is also highly competitive, with numerous local and international players vying for market share. Many of these players both domestic and international are well-funded, allowing them to expand quickly and invest in marketing and logistics.

Within purchasing types, fashion, electronics, and groceries are the most popular product categories in Southeast Asia. Some ecommerce players, such as Lazada, Shopee, and Tokopedia, sell a diverse range of products and services to customers, whereas others, such as Carousell, specialize in second-hand goods.

As you can see, the Southeast Asian ecommerce market is diverse and rapidly growing, providing significant opportunities for businesses looking to expand into the region. Businesses will, however, need to be able to navigate the various cultural, logistical, and regulatory challenges that come with doing business in Southeast Asia in order to be successful in this market.

Top Platforms:

1. Lazada: This is one of the biggest e-commerce platforms in Southeast Asia, operates in six countries in the region. Lazada is owned by Alibaba and it offers a wide range of products and services, including fashion, electronics, household items, and more.
2. Shopee: Another Southeast Asian e-commerce behemoth, with a strong presence in Malaysia, Singapore, Thailand, and the Philippines. It is well-known for its app-based marketplace, through which it sells everything from clothing to electronics.
3. Tokopedia: Indonesia’s most popular online marketplaces. It has a wide variety of products and services, including fashion, electronics, furniture, and more.
4. Qoo10: This is an e-commerce platform based in Singapore that operates throughout Southeast Asia. It offers a wide range of products and services, including clothing, electronics, and home furnishings.
5. Carousell: Carousell is a Singapore-based company that began as a classifieds app and has since expanded into an e-commerce platform that operates in several Southeast Asian countries such as Singapore, the Philippines, and Indonesia, among others. It emphasizes user-generated content and a collaborative approach to buying and selling.

As for the revenue, it varies depending on the region and the market size, but all of these platforms are considered among the most popular in Southeast Asia and most of them have been growing continuously in terms of revenue.

Key features and differences between popular ecommerce platforms in Southeast Asia

When it comes to launching an online store in Southeast Asia, there are numerous ecommerce platforms to consider. Each platform has its own set of key features and differences, making it difficult to determine which one is the best fit for your company. In this section, we’ll take a closer look at ecommerce platforms we just mentioned, highlighting their key features and differences.

The Powerhouses:

First, let us look at Lazada. Lazada has a significant presence in Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. Lazada’s key features include an easy-to-use interface and a strong logistics network. However, one disadvantage of Lazada is that seller fees can be quite high. As years pass they are continuing to expand into other South East Asian countries.

Shopee is another popular ecommerce platform in Southeast Asia. Shopee, like Lazada, is a marketplace that offers a diverse range of products from a variety of sellers. It has a significant presence in Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. Characteristics of Shopee and reputation are nearly identical to Lazada. Additionally, Shopee offers a variety of promotions and discounts to help sellers increase their sales. However, similar to Lazada, the fees for sellers can be quite high.

The Domestic Leaders:

Next, we have Tokopedia. This platform is one of the largest ecommerce platforms in Indonesia. Tokopedia is a marketplace that offers a wide range of products from various sellers. Tokopedia offers a variety of promotions and discounts to help sellers increase their sales. They are also very well known for their partnerships within entertainment (such as within K-pop for instance). However, similar to Lazada and Shopee, the fees for sellers can be quite high.

Carousell is a popular ecommerce platform in Southeast Asia, particularly in Singapore, Malaysia, and the Philippines. It offers a unique approach to online shopping by allowing users to buy and sell items as second-hand. So in this case, there isn't normally businesses selling to students, rather its more person-to-person. But Carousell has limited product categories, shipping options, and customer service.

Finally, there is Qoo10. This is one of Singapore’s and Malaysia’s most popular ecommerce platforms. Qoo10 is a marketplace that sells a wide variety of products from a variety of sellers. Qoo10’s key features include an easy-to-use interface, a diverse product offering, and a strong logistics network just like the others. As well, just like Lazada, Shopee, and Tokopedia, seller fees can be quite high.

Finally, when it comes to Southeast Asian ecommerce platforms, there are numerous options to consider. Each platform has its own set of key features and most popular products which are always changing, so it’s important to compare them and decide which one is best for you.

Factors to consider when choosing the best ecommerce platforms for Southeast Asian market

When it comes to setting up an online store in Southeast Asia, choosing the right ecommerce platform can be a crucial decision for the success of your business. Here are some factors to consider when choosing an ecommerce platform for the Southeast Asian market:

1. Market presence: Some ecommerce platforms are more popular in certain Southeast Asian countries. Consider the platform that has a strongest presence in your target market.
2. Payment options: Payment options can vary from platform to platform. Make sure that the platform you choose supports the most commonly used payment methods in your target market, such as local debit and credit cards, e-wallets, and cash on delivery. Payment Service Providers like?eromnet?will have all of those payments methods ready to go. So make sure you choose s a good PSP.
3. Logistics and fulfillment: Selecting a platform with an extensive logistics and fulfillment network can help ensure that your products reach your customers quickly and efficiently. Some platforms also provide warehousing and logistics services to assist you with inventory and shipping management.
4. Fees: Different platforms charge sellers different fees. Be sure to compare fees and determine which platform provides the best value for money.
5. Customer service: Good customer service is critical for your business, especially when it comes to resolving issues with orders or deliveries. Choose a platform that provides responsive and helpful customer support.
6. Customization and scalability: Its important to select a platform that allows for customization so that you can easily adapt your store as your business grows.
7. Mobile optimization: As more people use mobile devices to access the internet, select a mobile-optimized platform to ensure that your online store looks great and is easy to use on a variety of devices.

By considering these factors, you will be able to find the best ecommerce platform for your business in Southeast Asia. Keep in mind that your choice should align with your business needs and goals, and the platform should be able to support the growth of your business over time.

Conclusion

So, you’ve chosen the right ecommerce platforms for you. So what’s next? Payments! Merchants need to understand the major players within payments to allow merchants to gain traction. If you are trying to expand you payment solutions all over the world; finding a solution like?eromnet’s?PayVerse?will be vital to ensure customers can actually purchase products.

PayVerse has over 80 different payment methods customers can choose from and covers all of the major payment methods around the world!?In other words, no matter what ecommerce platform you choose, we’ll be able to process payments from all of those demographic groups. That way you can meet customers from all around the world with us! If you want to learn more check out our website here:???? – No.1 ??? ?? ??? (eromnet.com)